Difference between revisions of "Buying a Condominium"

#:'''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.  

#::ii.If the strata fees seem low, consider whether the budget is adequate to sustain the Strata Corporation, and be realistic with respect to likely strata fee increases.

#:'''b. Other assessments'''—There are other payments that a strata lot owner may need to pay, including but not limited to:

#::i.'''Special Levies'''—A Strata Lot owner also needs to pay their share of any special levy for extraordinary expenditures which is assessed against all strata lot owners

#::ii.'''User Fees'''—there may be user fees to use parking or other facilities.

#::iii.'''Fines and costs of bylaw enforcement''' can be charged back to an owner who contravenes the bylaws or rules.

#::iv.'''Insurance Deductibles'''. Many Strata Corporations will charge an owner for insurance deductibles or other charges arising from sources of damage originating within a strata lot.

#: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.