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Difference between revisions of "Buying a Condominium"
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'''A. Form B Information Certificate''' which sets out prescribed facts about the current general status of the Strata Corporation and the strata lot being sold. The Form should include the financial obligations in relation to that strata lot, any parking and storage facilities assigned to the strata lot, and other useful facts. The Form B should have attached documents such as the current budget, rental disclosures statement (if any), rules and the depreciation report for the Strata Corporation (if any). | '''A. Form B Information Certificate''' which sets out prescribed facts about the current general status of the Strata Corporation and the strata lot being sold. The Form should include the financial obligations in relation to that strata lot, any parking and storage facilities assigned to the strata lot, and other useful facts. The Form B should have attached documents such as the current budget, rental disclosures statement (if any), rules and the depreciation report for the Strata Corporation (if any). | ||
The Form B Information Certificate also shows if the strata corporation has adopted any new bylaws which will take effect but haven’t yet been filed at the Land Title Office, and whether the strata corporation is involved in any lawsuits or arbitration. | :The Form B Information Certificate also shows if the strata corporation has adopted any new bylaws which will take effect but haven’t yet been filed at the Land Title Office, and whether the strata corporation is involved in any lawsuits or arbitration. | ||
You should always review a current Information Certificate before making an offer to buy a strata lot. Or you should make your offer subject to reviewing a current Information Certificate. | :You should always review a current Information Certificate before making an offer to buy a strata lot. Or you should make your offer subject to reviewing a current Information Certificate. | ||
The strata corporation may charge a fee plus the cost of photocopying or other reproduction for providing the Form B Information Certificate. | :The strata corporation may charge a fee plus the cost of photocopying or other reproduction for providing the Form B Information Certificate. | ||
'''B. Depreciation Report'''—every strata corporation with 5 or more strata lots must obtain a depreciation report unless the owners have regularly voted by ¾ vote resolution to defer the report. If a depreciation report has been prepared, a copy of it must be attached to the Form B Information Certificate. The depreciation report must have financial forecasting and an inventory and evaluation of the common property and common assets and any other property that the strata corporation has a duty to maintain. A depreciation report helps the owners anticipate and budget for future common expenses and special assessments. | '''B. Depreciation Report'''—every strata corporation with 5 or more strata lots must obtain a depreciation report unless the owners have regularly voted by ¾ vote resolution to defer the report. If a depreciation report has been prepared, a copy of it must be attached to the Form B Information Certificate. The depreciation report must have financial forecasting and an inventory and evaluation of the common property and common assets and any other property that the strata corporation has a duty to maintain. A depreciation report helps the owners anticipate and budget for future common expenses and special assessments. | ||
If a depreciation report has not been obtained, take especial care in evaluating the condition of the property as a whole. | :If a depreciation report has not been obtained, take especial care in evaluating the condition of the property as a whole. | ||
'''C. Title to the strata lot'''—This document will list any covenants, easements and other encumbrances on title. With your lawyer review the documents registered against title, and confirm that there are no registered documents which are a problem, or which affect the value or usability of the strata lot. | '''C. Title to the strata lot'''—This document will list any covenants, easements and other encumbrances on title. With your lawyer review the documents registered against title, and confirm that there are no registered documents which are a problem, or which affect the value or usability of the strata lot. | ||
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'''E. The Bylaws of the Strata Corporation''', which will set out the specific rights and obligations which an owner has, and give you a good sense of how rigidly the Strata Corporation governs the owners. | '''E. The Bylaws of the Strata Corporation''', which will set out the specific rights and obligations which an owner has, and give you a good sense of how rigidly the Strata Corporation governs the owners. | ||
F. Obtain and review the '''Land Title Office’s''' '''''Strata Plan General Index''''' for other documents registered in the Land Title Office, such as limited common property designations, or other important documents, such as a rare unanimous section 100 resolution which changes the default division of expenses. | '''F.''' Obtain and review the '''Land Title Office’s''' '''''Strata Plan General Index''''' for other documents registered in the Land Title Office, such as limited common property designations, or other important documents, such as a rare unanimous section 100 resolution which changes the default division of expenses. | ||
G. Several years of '''minutes of meetings''' of the Strata Council, and general meetings of the owners, including minutes of any section will give you a sense of how active the Strata Corporation’s government is, and what issues the Strata Corporation has been contending with in recent years. Request no less than two years of minutes, and review them carefully. Request minutes for a longer time period if possible. | '''G.''' Several years of '''minutes of meetings''' of the Strata Council, and general meetings of the owners, including minutes of any section will give you a sense of how active the Strata Corporation’s government is, and what issues the Strata Corporation has been contending with in recent years. Request no less than two years of minutes, and review them carefully. Request minutes for a longer time period if possible. | ||
H. For new developments, the Owner-Developer is obliged to provide prospective first purchasers a copy of the up-to-date '''Disclosure Statement''' including any amendments as filed with the Superintendent of Real Estate. That document discloses the intentions of the Owner-Developer, and contains marketing representations, as well as disclosure of legal encumbrances and other important information. | '''H.''' For new developments, the Owner-Developer is obliged to provide prospective first purchasers a copy of the up-to-date '''Disclosure Statement''' including any amendments as filed with the Superintendent of Real Estate. That document discloses the intentions of the Owner-Developer, and contains marketing representations, as well as disclosure of legal encumbrances and other important information. | ||
Although the Developer’s Disclosure Statement itself doesn’t bind the Strata Corporation as a governing document, it will include schedules which are binding, and it can indicate the Developer’s intentions for the development, and plans for future phases, which may be important to you. | :Although the Developer’s Disclosure Statement itself doesn’t bind the Strata Corporation as a governing document, it will include schedules which are binding, and it can indicate the Developer’s intentions for the development, and plans for future phases, which may be important to you. | ||
For older developments, it may be possible to obtain a copy from the vendor, or they can request a copy from the Strata Council. | :For older developments, it may be possible to obtain a copy from the vendor, or they can request a copy from the Strata Council. | ||
Referring to those documents, a savvy purchaser or their lawyer should be able to get a reasonable and current sense of the strata corporation and the strata lot, and any other documents which should be reviewed. Particular attention should be given to issues of importance to you, and to the following: | Referring to those documents, a savvy purchaser or their lawyer should be able to get a reasonable and current sense of the strata corporation and the strata lot, and any other documents which should be reviewed. Particular attention should be given to issues of importance to you, and to the following: | ||
