Buying Selling a Condominium in Northumberland
With the condominium re- sales on the raise, Northumberland Home Values Group Realtors are often asked many questions by buyers as well as sellers. Sellers like to know what information they should have available for the buyers to make the transition easier for both parties.
Unlike typical home and property purchases where the buyer is buying what is known as Fee Simple ownership. Which means they will enjoy the “Full Bundle of Rights” like any home owner. When purchasing a condo the buyer is actually buying shares in a corporation. Those shares are dedicated or aligned with a specific living space. But they are also buying a proportional interest in the common elements of the corporation. The grounds areas, parking and hallways would be common elements. But also the pool, trails, elevators will be as well. There can be a significant cost / liability associated with the parts of the condo that they won’t actually live in.
Condo Common Fees
Condo fees are the monthly fees each condo (or corporation share holder) will be required to pay to
1. Maintain the common elements on a daily basis. Cut the grass and clear the snow for sure. They could also include window washing, elevator maintenance – building and liability for sure.
2. Set aside money to cover long term maintenance and structure repairs. Which could be a new roof or repaving the parking lot.
We at Northumberland Home Values Group often recommend that the sellers have a copy of the utilities on hand, copy of the tax bill, as well as, the amount of the monthly condo fees. If the Seller chooses, they can order a document called The Status Certificate, or have the Buyer order one, in fact anyone can purchase a Condo Status Certificate; Realtors. Appraisers or even a person just thinking of purchasing a unit in a particular building. All that is required is a written request together with a fee ( maximum of $100 plus HST).
Status Certificate Is A Dated Document
It’s important to remember that the Status Certificate only speaks to the state of the corporation on the date that it was signed.
At Northumberland Home Values Group, when helping the buyer with a condo purchase, we always include the Status Certificate review by the buyers lawyer, because it contains very important information like:
- Budget and financial statements.
- Statement of unit common expenses and defaults in payment, if any.
- Any increases since last budget and reasons.
- Any assessment levied
- Outstanding judgments and legal actions against the corporation, if any.
- Copies of all agreements like rules and regulations.
- Reserve Fund information, studies and balance and many other items important to you as a buyer or seller.
Any one of the above can change at any time so it is critical that when Buying a condo the status certificate is currant. At the Northumberland Home Values Group we are here to help.