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Difference between revisions of "Buying a Condominium"
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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: | ||
'''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 fees'''—all strata lot owners must pay towards 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. | :'''a. Monthly strata fees'''—all strata lot owners must pay towards 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, consider whether 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, consider whether 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. | ||
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:Consider reviewing the financial statements and budget of the strata corporation to assess the financial well-being of the Strata Corporation, where money is being spent, and the balance of the contingency reserve fund and other accounts. Review what special levies and other funds have been assessed and expended on major expenses such as repairs. | :Consider reviewing the financial statements and budget of the strata corporation to assess the financial well-being of the Strata Corporation, where money is being spent, and the balance of the contingency reserve fund and other accounts. Review what special levies and other funds have been assessed and expended on major expenses such as repairs. | ||
'''2. The physical condition of the project'''—The general rule is that every owner in a strata corporation must contribute to common expenses, such as repairs, unless an exception to the rule applies. If the development is in poor repair, you will have to pay your share of the cost to fix it, even if the repairs do not involve your strata lot or the part of the project where your unit is located. You may have to pay for special levies that have been previously approved, with future installments. | '''#2. The physical condition of the project'''—The general rule is that every owner in a strata corporation must contribute to common expenses, such as repairs, unless an exception to the rule applies. If the development is in poor repair, you will have to pay your share of the cost to fix it, even if the repairs do not involve your strata lot or the part of the project where your unit is located. You may have to pay for special levies that have been previously approved, with future installments. | ||
:Review the minutes of meetings to see if any major repairs have recently been made or are planned. If the strata lot is part of something called a '''section''', you also need to check the minutes of general meetings of the section as well as minutes of the meetings of the section’s executive. In each case, ask for complete copies of the relevant minutes for at least the past 2 years. | :Review the minutes of meetings to see if any major repairs have recently been made or are planned. If the strata lot is part of something called a '''section''', you also need to check the minutes of general meetings of the section as well as minutes of the meetings of the section’s executive. In each case, ask for complete copies of the relevant minutes for at least the past 2 years. | ||