It has been my privilege to compile this list of questions and concerns many of my customers have had when they approached the possibility of purchasing a condo. I have discovered that many condo purchasers shop on their own, perhaps responding to advertisements from the Newspapers, Calgary Real Estate News, Radio Announcements, Signs, or other sources. The purchasers phone the listing agent to obtain information an perhaps to view the condo. After the viewing you either like the condo or you may perhaps not be interested, and you continue to respond to ads, and view more condos hoping to find the one that's just right for you.

In some cases the purchasers get lucky and find a great condo, write an offer with the listing agent, make a deal, move in and live there happily ever after. However, many times the purchasers move in and find that they are suddenly exposed to situations and problems which they were not informed about, because the right questions were not addressed at the time of the purchase, or some pertinent information was either deliberately or unintentionally withheld from the purchasers to hastily put a deal together in favor of the vendor. Don't forget, the listing agent has a fiduciary relationship with the vendor, and is working on the vendors behalf. You the customer are to be treated fairly and honestly, however, if you meet a different agent every time you view a condo, chances are perhaps you may be vulnerable, and not be totally informed of the whole picture. I have therefore prepared a list of concerns which may be helpful to you.

1) What is included in the asking price? Several suggestions could be, appliances, central or window air-conditioning (ask about the window air conditioner as the vendor may remove it if it is not included in the offer to purchase), window coverings, garborator, mirrors, shelves, workbenches, central vacuum systems and attachments etc. It is best not to take any of the items you expect to remain for granted. Make sure all are written in the offer and agreed to by the vendor.

2) Is the condo complex you wish to purchase in CMHC approved. This means that it could affect you when you want to re-sell your condo. You may be purchasing your unit with a substantial down payment and may not require a high ratio mortgage, however if the unit is CMHC approved it would qualify to future purchasers who have only 5% for the down payment. This greatly increases the units future marketing potential as more purchasers could qualify.

3) 48 Hours. A purchaser by law has 48 hours to review the condominium documents after the offer to purchase has been accepted by the vendor. The purchaser may cancel the contract if the information in these documents is not satisfactory with the purchasers expectations. Many purchasers don't fully understand the condo documents and the 48 hours also allows the time to ask a lawyer or an experienced source to study them and to inform you of their content.

4) Fee Increases. Be aware of new condo conversions. Initially the monthly contingency fee is usually very attractive and low.There usually is also a very low reserve fund as maintenance and upgrading expenses have not yet surfaced. In time the condo committee membership will probably find a need to build up the reserve fund and may vote to increase the monthly fee to fulfill this need. Ask the questions, be informed. Allow for possible future increases in your budget.

5) Contingency or Reserve Fund. Every condominium project has a special fund which is set aside to meet operating costs. Each unit owns a portion e.g. 1.74 % or 2.33 % shared interest. When purchasing the condo you must buy the unit portion. The vendor may wish you to pay for the unit share, however in many cases the vendors portion can be negotiated to be included in the offer to purchase and forms part of the purchase price. Make sure this concern is dealt with at the time the offer is written.

6) Parking. Where parking is available there may be as many parking stalls as there are units. Sometimes there are less parking stalls than there are units. If parking is a concern make sure you include the allocated stall in your offer to purchase.

7) Extra Parking. If an additional parking stall is important to you, make sure that you inquire with the management what the stall would cost, if there is one available to you and if it is not presently available to you, find out approximately how long it would take to obtain one. If indoor parking is important to you, don't assume that your stall is such, as sometimes there are fewer indoor parking stalls than there are units.

8) Visitor parking. Is there an area set aside for visitor parking? If so find the location, what are the visitor parking hours, and inquire if overnight parking is permitted with or without a permit from the manager.

9) Street or neighborhood parking. On occasion you may wish to entertain several guests at one time. Is street parking convenient to them?

10) Value! Has the condo complex you are interested in maintained it's value? Are the selling prices increasing or decreasing? Ask your agent to study the market trend for you. If the prices are declining you may be saving money at the time of your purchase. Make sure this will not affect you in the event you have to re-sell your unit. Ask your agent to compare the asking price of your unit to similar units which have recently sold.

11) Rentals. If this topic is important to you make sure to inquire the percentage of units which are owner occupied, and how many units are tenancies. Owner occupied units are usually more favorable neighbors and greater care would be noticed than some tenants.

12) Investment Property. Will you be using you condo as your primary residence, or perhaps if your personal situation changes would you consider leasing out the property? If you may be renting out your unit make sure you are aware that the complex in fact allows tenants.

13) Taxes. Aside from the monthly condo fee you must also pay property taxes. Make sure you are aware of the amount, and also be aware that if you plan to rent out the condo that the taxes usually increase drastically. Check with the city to learn the difference, before you rent it out.

14) Pets. You may wish to know if pets are allowed. Make sure you inquire as to what kind of pets, how many pets, is there a dog run, on, or near the premises. You may not like to live near or amongst pets. Ask if there are many on the premises.

15) Age Restriction. Is your unit restricted by age occupancy, e.g. +55 years. If you are over fifty five years or older as a purchaser, it will not present a problem. In the event you wish to sell, the same marketing restriction shall apply.

16) Management. Find out the name of the agency which manages the property. Ask questions about their performance. Are they doing a good job? Is their reputation good? Are the other condo owners pleased? Ask your agent to inform you.

17) Condition. In what condition is the building/s in? Walk around. Is it nicely painted? Does it appear to be tended properly? Does the roof or do the shingles appear to be in good condition. Are the fences in good shape? Check for other visible appearances good care as well as neglect..

18) Structure. Find out all about recent repairs and improvements. How have they affected the reserve fund.

19) Work Orders. Are there any major costly projects planned in the near future. Will these improvements affect the reserve fund or is the fund able to cushion the costs of repair. Obtain a copy of the minutes of the last meeting. Ask the questions.

20) Financial Statement. Obtain a copy of the latest financial statement when you receive the condo documents. Observe it carefully. Become aware of it's content.

21) Foundation. Ask if there has been a recent structural engineer's report. If so try to obtain a copy. Check basement carefully for cracks and water seepage. Make sure you become aware of who fixes what if a future problem should arise.

22) Snow Removal. Does snow removal include your front steps, porch, sidewalk and your parking stall?

23) Lawn Care and Landscaping. Does this include your front/rear area. Are shrubs and trees tended by the management. Find out what you will be responsible for.

24) Amenities. Are there any amenities, e.g. exercise room, swimming pool, tennis courts, etc. available for your use? If so are they to be used freely, or is there a user fee? May they also be used by guests, or are they restricted to unit residents? What are the hours in which they are available for your use?

25) Heating System. Is there central heating, or is it local? Is the heating system forced air, steam, water, or electric? Is there central air conditioning? Is the cost of heat included, or do you pay your own?

26) Water. Is water included or do you have a separate water meter.

27) Insurance. Make sure you become aware of exactly what the condo insurance will cover. You will need to have your own insurance for your unit and your personal contents.

28) More Listings. Are you also aware of additional listings in the complex. In many cases the condo complexes do not allow real estate signs. Make sure you work with an agent who would take the time to advise you of all of the units available in the project, so that you are aware and can shop for the best unit that will suit your needs.

I trust that the information I have provided for you will be helpful to you in your decision making process.

I suggest that you form a working relationship with a good reputable real estate agent you can trust, someone who will place your needs as a condo purchaser ahead of their own, someone who will help you by addressing many of the concerns you may have. I have created just such a program especially for you.

Judy Lindsay Team Realty Homebuyer Profile Program is designed in such a way to help you. Call us at 925-2900:

 

• to receive all listings in the area you are interested in.
• to view condos with a condo specialist.
• to become pre-qualified for a mortgage at a lower than advertised rate and maintain this rate for 90 days.
• to learn how to receive 3% cash back on your mortgage.