5 questions you need to ask before buying a condo

Condominiums (also known as strata properties in B.C.) can be a great choice for many homeowners.

For one thing, condos are often less expensive than single-family homes. They tend to be located in popular or centrally-located neighbourhoods that are close to transit, shops, services, and plenty of recreation opportunities. Plus, they offer all the benefits of a turnkey lifestyle with less time spent worrying about upkeep, maintenance or repairs.

But buying a strata property also comes with a few unique considerations that require a little extra time and research beyond simply finding out how much the condo fees are. If you’re thinking about buying a condo in the Lower Mainland, here are five questions you should ask before you put in an offer.

Question #1: Can I see the status certificate?

The first step before buying a condo is to ask for – and carefully review – the status certificate.

A status certificate is a detailed snapshot of the legal, operational and financial health of both the unit you’re buying, and the strata corporation as a whole. This includes everything from an overview of the strata’s budget and financial records to information on whether the unit has any unpaid fines or any lawsuits have been filed against the strata.

While you’re at it, ask for a copy of the strata’s latest depreciation report as well, so you can find out if there’s enough money set aside in its Contingency Reserve Fund to cover any unexpected future expenses.

Question #2: Are there any special assessments filed or pending?

A special assessment is an extra fee that the strata corporation imposes on the unit owners to pay for large repairs that aren’t covered by the reserve fund.

Some common examples of special assessments include the cost of repairing or replacing an aging roof, carrying out major upgrades to the building common areas or amenities, or fixing the damage from a major flood or water leak.

Every unit owner is required to pay for their portion of any special assessments, which can run into the tens or even hundreds of thousands of dollars per unit. Finding out whether or not any special assessments have been assessed or filed can give you a heads-up about possible future costs you might not have included in your budget, while also giving you a better idea of the structural and financial condition of the building you’re buying into.

Question #3: What features and amenities are available to residents?

One of the great advantages of condo living is that you have access to all the common areas, special features and shared amenities your building has to offer. But the type and number of amenities can differ greatly from one condo property to another.

Some buildings may offer little more than a common lobby, mailroom and small outdoor space. Others resemble high-end hotels or resorts, with everything from immaculately landscaped grounds and a 24/7 concierge to a pool, sauna, gym or theatre room.

If there are any particular amenities that are important to you or your family, make sure the condo you’re looking at has them. Just remember that all those perks also have to be paid for. So if you’re not the kind of person who tends to use the pool or gym on a regular basis, choosing a building with fewer amenities could help keep your condo fees lower.

Question #4: What are the building rules and restrictions?

Bylaws are one of the biggest ways that condos differ from traditional homeownership.

Condo bylaws are detailed sets of rules and restrictions that designate exactly what the unit owners can – and can’t – do with or in their homes. On the plus side, bylaws can help keep your building looking its best, and make sure everyone can enjoy their home in peace and quiet.

But bylaws can also limit what changes you can make to your unit, and restrict everything from how much noise you can make to whether or not you can smoke in your home.

So before you start mentally moving in, get a copy of the current bylaws to find out what the strata rules and regulations are regarding things like parking policies, noise levels, rental or pet restrictions, smoking or vaping bylaws, and any other rules that could impact you.

Question #5: How is the building managed?

In B.C., condos are run by a strata board made up of volunteer unit owners who are elected to serve a fixed term. Most larger buildings also use property management companies to give advice to the board, and take care of daily tasks like building maintenance or collecting those pesky condo fees.

Before you buy, take some time to review the minutes from several recent board meetings to find out how the property is run and maintained, and whether there is any history of fights, disagreements or other conflicts between the unit owners.

If you’re not sure how to start, ask your REALTOR® for advice. If they have experience with the area and type of property you’re interested in, your REALTOR® will probably already have a pretty good idea about the condition and history of any condo you may be thinking about. Asking them to share their expertise can help make sure you make the right choice for you and your family.

Any more questions?

Contact us for a free consultation today!