If this is your first time considering buying a condo, there are a few important, but likely unfamiliar terms you should know.
Board of Directors
The Board of Directors of a condo corporation is a group elected by unit owners to act on behalf of, and make decisions for all the unit owners.
The board ensures fees are collected, makes decisions about the maintenance of common elements, enforces rules and by-laws, and manages the condo’s reserve fund.
By-Laws
By-laws identify how the condo corporation is to be run and specifies any restrictions that the building may have.
Common Elements
When you own a condo unit, you own everything from the walls in. Other parts of the building may be common elements, these spaces are co-owned by all unit owners in the building. Common elements may include the gym, playgrounds, lobby, elevators, hallways, the roof etc.
Condo Fees
Condo fees are a monthly fee to be paid by each unit owner. Fee amounts vary from building to building as well as unit to unit. What fees cover also varies from building to building, but they may cover maintenance, utilities, landscaping, building amenities and monthly contributions to the reserve fund.
Declaration
The declaration is a legal document that is used to create a condo corporation. The declaration identifies individual and common parts of the property, and outlines how decisions regarding the property are to be made and the responsibilities of the condo corporation.
Reserve Fund
The reserve fund is a sum of money collected from a portion of every unit owners' monthly condo fees. This fund is saved for major repairs and renovations to the property.
There's lots to learn when it comes to owning a condo. Don't hesitate to contact us, we'd love to help.
