Important Tips For Buying A Condo

31th March 2009
When buying a condominium, many consumers don’t realize that compared to other types of real estate, condos are a completely different animal. And although they are one of the greatest housing options ever, what you don’t know about them can turn around and bite you if you’re unaware. So it’s a good idea to learn as much as possible about the peculiarities of condo purchase, before you begin to shop for one.

One of the main differences between buying a condo and buying a single family or "detached" home, is that when you buy into a condo, you are also buying into the entire building or physical property that houses it. Buying a conventional style house, you don’t necessarily worry about whether other homes on the street or in the neighborhood have problems with their roof or heat pump. But everything from appliances to sub-soil conditions - and elevators to trees - can become your concern if you share it in a condominium ownership situation.

This means that whereas you would hire a building inspector to check out only your own space if you were buying a bungalow, when you buy a condo you need to ensure that your inspector checks the entire building or condo complex - to the extent that it is reasonable. Beyond your own condo unit, the inspector should also carefully examine the building’s foundation, plumbing system, and other structural and mechanical items connected to your unit. The more you learn the better off you’ll be at closing - and in the future as a resident.

For instance, if you are paying for the use of the condo’s swimming pool, gym, or central air conditioning unit, you need to know if those are in proper working order before you buy - even if the amenity is down the hall, around the corner, or in an adjacent building.

And in condo life, one person’s leaky plumbing can be another person’s destroyed hardwoods. On the positive side, one fabulous gardening job can be everyone’s beautiful view from the balcony. It’s certainly not communal living, but there is a sense of shared assets that comes into play in a condo situation.

As always, it is prudent and highly recommended to have a real estate attorney and real estate broker to inform you of your legal rights, obligations, and what precautions to take to minimize problems if and when circumstances that are unexpected land in your lap. Your upstairs neighbor might go away for the weekend and leave the windows open to let in a little fresh air, but while they’re gone a thunderstorm could leave you with a soaked ceiling. The experts can at least educate you about what to expect when you assume shared responsibility as a condo dweller.

Here are some areas of particular interest to those shopping for a condo:

The Policy on Rental and Other Tenant / Owner Usage
Can you rent out your condo to others? Can you run a business from your condo? Can you own it as vacation property but reside elsewhere? These are important questions to ask regardless of how you plan to use the condo, because they also apply to other owners in your building.

Landscaping / Garbage Collection / Recycling
One of the greatest perks of condo ownership is that you don’t have to cut the grass yourself on weekends. But who handles such routine services and will you be expected to pay extra monthly fees for such things as landscape maintenance?

Emergency Repairs
Every condo project should have a contact person in case of an emergency. And if that person is on vacation, you should know who to call as a backup. Perhaps there is an on-site handyman, or service contractors who offer discounted rates.

Use of Common Facilities like Meeting / Banquet Rooms
You may enjoy the fact that your condo has a meeting room, but need to find out how to reserve it for yourself when the time comes.

New Construction Promises
Before you purchase a unit within in condo project that is under construction, scrutinize the seller’s obligation regarding units as well as recreational facilities. Salespersons might inflate statements about amenities. But if they are not promised on paper in the offering plan, there may be no obligation to deliver them to you. This extends to landscaping, the quality of materials used in construction, and deadlines for completion and move-in of residents.

Source: Edge