BUYING A CONDO

Condominium refers to a system of land ownership where each individual owner holds title to a specific unit as well as owning a share of common property (typically referred to as common elements). Many types of condominium units are found in the marketplace: an apartment suite in a high rise complex, one of a row of townhouses, a detached or semi-detached house, or even a vacant lot. Leasehold, as well as freehold, condominiums can also be found in selected provinces.

The characteristic that has bound all these diverse forms of ownership is that, in each, the owners of the condominium units also own an undivided interest in the common elements. Such elements might include hallways, elevators, parking structures or lots, landscaped areas, recreational facilities, roadways, and any other property owned in common by all unit owners within a specific condominium project.

Interestingly, even that fundamental distinction is now disappearing with the introduction of common element condominiums in which projects have no units but only common property (e.g., golf course). The term unit under such legislation refers to the common interest held by an individual and not a specific unit beyond the common elements. The proportionate share of ownership is typically registered to property beyond the condominium project.

Insurance requirements for condominiums consist of three separate groups.

• The condominium corporation requires insurance for the unit structures (excluding any improvements or betterments made by the owner), and common elements. In addition, the corporation is responsible for liability coverage, any bonding coverage required for employees and directors/officers, and director liability.
• The unit owner should insure any improvements (built-in items, carpeting, and personal belongings), and generally any risk not covered by the corporation (including the owner’s liability).
• Renters should ensure that all personal belongings are insured and appropriate legal liability coverage is obtained.

Insurers typically provide owner policies for condominium owners structured on the same general basis as is the case for residential property. Tenant package policies are structured for both condominium tenancies as well as other rental accommodation. Real estate practitioners should note that the rental agreement for a condominium may specify that the tenant provides coverage for those items owned by the landlord on the premises, e.g., appliances and carpeting.

Condominium Fees

Upkeep and maintenance services provided by a condominium corporation or a co-operative housing corporation to the owner of a residential unit in that corporation or to any tenant of the owner are GST exempt. Condominium corporations and co-operative housing corporations are not able to recover any GST paid on their purchases of services such as snow removal or landscaping. In this respect, these residential corporations are treated in the same manner as residential landlords.

Condo owners in Halifax HRM pay condo fees on a yearly or monthly basis, around $130+ dollars per month.

Condominium transactions are more complex than freehold home transactions. The Condominium Act is a piece of provincial legislation which governs every aspect of the building management, sale and purchase of units in a condo development. While these controls are designed to protect homeowners and buyers, they can be daunting to first-time buyers. Brian & Julie are condo specialists that have extensive knowledge of the condo purchase and sale process, and will guide you through every step of the way.

For more information call Brian or Julie today at 499-2481 or 221-4663