Buying a condominium often appeals to first-time buyers because of the, usually, lower entry price. But in some ways it can be a more complicated purchase. Here are some tips:
Have your agreement reviewed: Although some people worry about the cost of hiring a lawyer, it is important to have an expert review your agreement. In many agreements, there are additional costs on top of the purchase price, but there is usually a clause that allows for negotiation of these costs. Therefore, hiring a lawyer can help you understand these costs and potentially save you thousands.
Be clear: Each condominium is its own community with its own set of rules. If you own a pet, play an instrument or are planning to redecorate, be sure to let your lawyer know so that they can double-check any restrictions imposed by the board of your potential condominium.
Verify the dimensions: Each agreement should come with a sketch of the unit, but be sure the sketch includes the unit dimensions. It's not unheard of for people to move into their new condos only to find that it is not quite the size they expected.
Only your agreement and condo document are binding. If, for example, you're looking at a marketing drawing in the sales room that shows a party room with furniture, or other amenities with certain features, keep in mind that it's just a drawing. Don't be disappointed if these 'extras' appear different in real life.
Check your surroundings: Most people remember to inspect the inside of their unit, but it's vital to also check what's outside the building. Be aware of the environment and nearby streets and ask yourself whether you'd be comfortable living there.
Be prepared for delays: Delays are typical during construction of new buildings. Sometimes the city has specific requirements that have to be met, or there may be problems with construction. Look into your building's clause covering 'occupancy fees' (see below) and be prepared to find alternate housing until your unit is completed.
Be prepared for unfinished items: An inspection day allows purchasers to check their new unit for deficiencies before moving in. If you find a problem, notify your builder and they should work to fix the problem as soon as possible. However, remember there are no time restraints, so the issue might not be corrected until after you move in.
Don't forget about the occupancy fee: The biggest surprise to most purchasers is that there is an occupancy fee after you move in if the building is not completed and registered. The Condominium Act states the developer can charge you property taxes, monthly common expenses and interest on the unpaid balance of your purchase price. None of this goes towards your mortgage. If you move into a lower floor you may end up paying the occupancy fee for a longer amount of time as the builder completes the upper floors.
Source: Denise Lash, condominium lawyer, Heenan Blaikie, Toronto