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Special considerations for Saskatoon condo buyers

When you purchase a condominium you’re buying more than just a home. You’re also purchasing shares in a corporation which is responsible for managing the affairs of the property. Your “share” of the corporation is normally based on the size of your condo unit, as a percentage of the whole. These shares are often referred to as a “unit factor.”

Of course, you enjoy exclusive use of your condo unit and pretty much everything that goes on inside of it, including improvements you wish to make are your responsibility and are done at your discretion provided these things do not contravene the Bylaws of the Condominium Corporation.

In addition to implementing and enforcing Bylaws for the condominium, the corporation is responsible for setting budgets, record keeping, maintaining adequate insurance on the building and other improvements and maintaining the property. Each unit owner makes a monthly contribution, based on their unit factor, to cover expenses incurred by the corporation. In most cases, some money is also collected and set aside for “reserves,” which will generally be used for unexpected expenses and expenditures which are not included in the general operating budget. Like any other property, major expenses are incurred when a roof needs to be replaced or a boiler system fails. Generally, these items are paid from reserves. If the reserve fund cannot cover the expenditure unit holders are called upon to make up the difference through what’s known as a “cash call.”

Just like companies which operate in the market place, some condo corporations manage the affairs of their property better than others. As a prospective buyer, you owe it to yourself to make certain that you have a reasonably good idea of what you’re getting yourself into. The doctrine of caveat emptor or buyer beware applies as much to condos as any other type of home and prudent buyers take appropriate actions to protect their interests.

If you offer on a condo unit through a REALTOR® some actions have already been taken to help protect you. All real estate registrants are required to use mandatory forms as directed by theBylaws of the Saskatchewan Real Estate Commission. One of those forms is called a Schedule “C” Special Terms for Contract of Purchase and Sale of a Condominium Unit. This form, when completed by a buyer and accepted by the seller, binds the seller to provide you with various documents within 10 days of acceptance. You may review these documents and if you are concerned about anything you discover to the extent that you wish to cancel the agreement, you may do so by serving written notice to the seller of your intention to rescind your offer. That written notice must be delivered to the seller within 5 days of receipt of the documents.

The Schedule “C” requires the seller to provide the buyer with the following documents:

  • the current Bylaws of the Condominium Corporation;
  • the latest financial statements of the Condominium Corporation and the last audited statements;
  • the current policy of insurance;
  • any current management agreement regarding the Condominium Corporation;
  • the current recent budget of the Condominium Corporation;
  • written confirmation of parking/storage facilities and exclusive use areas included in the purchase price, any related costs or charges and any special rules regarding those areas; and
  • a current Estoppel Certificate issued by the Condominium Corporation pursuant to the regulations of The Condominium Property Act, 1993.

 In my next post, I’ll go a little deeper on these documents, explaining what the purpose of each is and what steps you may take to protect yourself.

Norm Fisher Royal LePage Vidorra

Norm Fisher, Author of the TeamFisher Saskatoon Real Estate Blog

About Norm

Licensed in 1993, Norm brings a wealth of experience to TeamFisher. He has worked in every imaginable capacity including sales agent, office manager, team leader, broker and now, broker/owner. Norm has written a weekly review of the Saskatoon real estate market for more than 650 consecutive weeks which may make him the most consistent industry blogger in the world.Less...

Licensed in 1993, Norm brings a wealth of experience to TeamFisher. He has worked in every imaginable capacity including sales agent, office manager, team leader, broker and now, broker/owner. Norm has written a weekly review of the Saskatoon real estate market for more than 650 consecutive weeks which may make him the most consistent industry blogger in the world.

Norm is known for his passion for technology and can most often be found exploring and experimenting with the next big thing in real estate marketing. He was the first Saskatoon real estate agent to promote a home online and has been an early adopter of new technologies ever since. “Everything about this business has changed over the past 20 years, and it will happen again in the next ten. An open mind and a curious attitude are all that’s needed to continue to find new ways to serve our clients by delivering a faster, smoother, worry-free transaction,” says Norm.

In his spare time, Norm enjoys Crossfit and cycling, some years accumulating over 2,000 kilometres on the road. He’s a strong supporter of the Royal LePage Shelter Foundation and enjoys raising funds by joining fun, fitness-related initiatives like the Grouse Grind for Shelter. In 2015, he trekked the Peruvian Andes to Machu Picchu. In 2017 he walked the southern highlands of Iceland across mountains, sand, snow, ice, lava fields and forest for seven days. Collectively those initiatives raised over a million dollars for Canadian women's shelters.
 

Note: We are in the process of bringing this blog home to the TeamFisher.com domain and we have a lot of stuff to move! Another 700 posts can be found at normfisher.com where they'll remain until we can get them moved here.

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