Buying a Condominium: Difference between revisions
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==Pay attention to issues important to you, and to the following:== | ==Pay attention to issues important to you, and to the following:== | ||
#1.'''Financial obligations'''—make sure that you can afford to be an owner. | #1.'''Financial obligations'''—make sure that you can afford to be an owner. | ||
#:a. Monthly strata | #:a. '''Monthly strata fees'''—all strata lot owners must pay a proportional part of the common expenses of the strata corporation by paying strata fees for their strata lot. The strata fees are normally based on the strata corporation’s annual budget divided by the unit entitlement which sets out the share for each strata lot. Check the current budget and the Form B Information Certificate for the current strata fees. Compare the strata fees to other similar developments. | ||
#::i. If the strata fees seem high, check if there are expensive recreational facilities or other features, or budgeted items which you will have to help pay for—whether they benefit you or not. | #::i. If the strata fees seem high, check if there are expensive recreational facilities or other features, or budgeted items which you will have to help pay for—whether they benefit you or not. | ||
#::ii. If the strata fees seem low, consider whether the budget is adequate for the strata corporation, and be realistic about likely strata fee increases. | #::ii. If the strata fees seem low, consider whether the budget is adequate for the strata corporation, and be realistic about likely strata fee increases. | ||
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#:Together, bylaws and rules set out rights and responsibilities of owners, tenants, occupants and visitors. They also set out special restrictions on the use of each strata lot, common property and common facilities. | #:Together, bylaws and rules set out rights and responsibilities of owners, tenants, occupants and visitors. They also set out special restrictions on the use of each strata lot, common property and common facilities. | ||
#: Bylaws can very broadly restrict what people can do in the development, including restricting or prohibiting: | #: Bylaws can very broadly restrict what people can do in the development, including restricting or prohibiting: | ||
#*rental of a residential strata lot by the owner to a tenant. | #:*rental of a residential strata lot by the owner to a tenant. | ||
#:*pets as specified in the bylaw or generally. | |||
#:*the permitted age of occupants. | |||
#:*smoking. | |||
#:*the use of parking stalls or vehicle size. | |||
#:*changes to the strata lots and common property. | |||
#:*other uses which can be made of a strata lot, common property or common facilities. | |||
#:Reading the bylaws and rules, and comparing them to the standard bylaws, can give you some idea about how restrictive the strata corporation is. It also provides some assurance that the priorities of the strata corporation match yours. Consider how you might want to use your strata lot. Don’t make any assumptions without carefully reviewing the bylaws and rules and satisfying yourself that you will be able to use the strata lot as you intend, and that your vehicle, pet, child and possessions will be able to move in with you. | |||
#:Get a copy of any rules. Although rules apply only to the use and enjoyment of common property and common assets, they are not registered in the Land Title Office, and can specifically restrict activities which might be important to you. For example, a rule may limit the size of vehicles that can park in a common-property parkade, or restrict the hours when a common-property fitness centre is open. | |||
#:If you ask, a seller can obtain strata documents from the strata corporation for you to review, including the up-to-date, consolidated bylaws, and a complete copy of the rules. | |||
#:Bylaws and rules can be changed, and some changes may dramatically affect how you can use your property. | |||
#6. '''Other restrictions'''—bylaws and rules are not the only documents which can restrict how you may use a strata lot. Covenants, easements and other documents registered against title may limit the use of the strata lot or affect its value. For example, in a bare land strata development, the title of your strata lot may be encumbered with a building scheme that restricts your use of the strata lot or limits the size or other details of any house you want to build on your strata lot. | |||
#:Municipal bylaws and zoning rules may further restrict use of a strata lot. | |||
#:With your lawyer, review the results of a current title search for the strata lot, and the other legal documents and circumstances. | |||
#7. '''Confirm what you are buying'''—check the location, dimensions and area of your strata lot. Balconies, parking stalls, storage units and other non-residential areas you may expect to have access to are sometimes configured in odd ways legally. For example parking spaces can be common property, limited common property, or part of your strata lot. Each of those configurations have differing legal effects and can change your repair obligations. | |||
#:If the parking stall or storage locker currently assigned to the strata lot is designated as common property, then the bylaws may allow the strata corporation to allocate or reallocate the use of a stall or locker, and you need to confirm whether you will keep that assignment. The strata corporation may also use a short-term exclusive use agreement or special privilege to give an individual owner or tenant the use of a stall or locker for up to one year. After that it must be renewed if they want the use to continue. Or the developer may have arranged for an affiliated corporation to hold a long-term lease over the common property parking or storage area. In that case, to use a particular stall or locker, the owner may need to negotiate an assignment of the right to use that stall or locker under the long-term lease. | |||
#:If the purchase of a strata lot includes the use of one or more parking stalls or storage units, you should confirm the nature of your right to use the parking stalls or storage units. Verify that any limited common property features like balconies, parking lots, and storage units are assigned to your strata lot in the manner, size and location which matches your expectations, are correctly noted on the registered documents and match the representations in the Form B Information Certificate, the real estate listing and any seller representations. | |||
#:Strata corporations must now disclose the designation of parking and storage lockers, and how they are allocated to a strata lot in the Form B Information Certificate. | |||
#:Put all your questions in writing and get written answers from the seller and, if possible, the strata council. | |||
==Use a lawyer== | |||
Use a lawyer | |||
Before making an offer to buy a condominium, have a lawyer review the critical documents, including the contract of purchase and sale, legal title to the strata lot, the strata plan and any amendments, limited common property designations and other resolutions affecting common property, the Form B Information Certificate, legal issues identified in the minutes, and the bylaws and rules. | Before making an offer to buy a condominium, have a lawyer review the critical documents, including the contract of purchase and sale, legal title to the strata lot, the strata plan and any amendments, limited common property designations and other resolutions affecting common property, the Form B Information Certificate, legal issues identified in the minutes, and the bylaws and rules. | ||
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Be very careful about rent-to-own, time share and other non-standard ways of buying a strata lot—do not sign any agreement without comprehensive legal advice. | Be very careful about rent-to-own, time share and other non-standard ways of buying a strata lot—do not sign any agreement without comprehensive legal advice. | ||
More information | ==More information== | ||
* Check script 401, called “Owning a Condominium”. Because buying a condo is very like buying a house, you should also check script 406, called “Buying a House.” It outlines many important topics not covered here, including “subject to” clauses, title searches, fraud risks, property inspections, the statement of adjustments, and more. | |||
* If you need financing, check script 408, called “Mortgages and Financing a House Purchase”. | |||
* Check the Strata Property Act. | |||
* The BC Government’s strata housing website has information for strata owners, strata residents and strata council members. This website provides basic information on: living in a strata, different kinds of strata, operating a strata (roles and responsibilities, meetings and voting, bylaws & rules, finances & insurance, repairs & maintenance including depreciation reports) resolving strata disputes, renting, buying and selling in a strata, the role of government, strata legislation, changes to legislation, and additional help and support. | |||
* Check the Condominium Home Owners Association of BC website. | |||
* The Condominium Manual by Mike Mangan is available at public libraries. | |||
