Are you thinking about buying a condominium? It’s important to know exactly what is included when you are considering purchasing a particular condo.
What do I own when I buy a condo?
When you buy a condominium, you own a private unit registered in your name. In freehold condominiums, you also own the land, the exterior walls, and the roof. You might also be permitted sole use of balconies, parking spaces, storage lockers, driveways, and private lawns.
Besides the unit itself, you also share ownership of some common elements in the larger building like lobbies and hallways, elevators, recreational facilities, walkways and gardens, and other amenities. Shared elements could also include structural elements and mechanical or electrical services.
What are condo fees?
Owning a condo comes with monthly fees that all unit owners pay. These fees cover the upkeep and replacement of shared property and may also cover the condo corporation’s insurance policies, utilities and services (snow removal, lawn mowing).
A portion of monthly fees may be put into a reserve fund to cover future maintenance and repairs. In some provinces and territories, a reserve fund study is required by law to tell condo owners how much money should be paid into the reserve fund. An engineer or other professional conducts a detailed examination of all building components and reports when repairs and replacements are expected, with a cost estimate.
Condominium fees may be adjusted from time to time to reflect the changing costs of goods and services and the health of the building’s reserve fund.
