Avoiding Additional Condo Fees!

The Unit Owner vs. the Condominium Corporation.

Two identical condominiums, from different Condominium Corporations can be dramatically different. The prudent condominium purchaser will be informed prior to making an offer. It would be an unwelcome surprise to learn after purchasing, that the roof must be replaced at considerable cost as the maintenance is the responsibility of the unit owners rather than the condo corp.

The typical condominium, whether it is a town house, carriage home, or an apartment, usually includes maintenance of all exterior components of the building and grounds. However, developers may exclude certain building components that would typically be the condos responsibility to repair and maintain. The cost of such items as windows, doors, roofs, and exterior brick, could be the responsibility of the condo owner.
Potential owners can determine their responsibility to by ordering a Status Certificate from the Property Management Company. (There is a fee of $100 and it may take up to ten days.)

Important information can be found in the Condominium Declaration and By-laws included with the Status Certificate. The “Unit Boundaries” section defines the division of responsibility between the owner and the condo corporation, and ultimately whether the condo or the owner pays for a specific repair.

Additionally, look for the following two By-laws, as they could result in extra costs to the owner:

• Insurance deductible by-law – The Owner may be directly responsible for the corporation’s insurance deductible in certain situations. This is easily addressed by purchasing Property Home Insurance with the correct coverage.
• Standard Unit Description bylaw – This by-law defines what would and would not be covered under the condominium’s insurance policy in the case of insurable damage to the unit. Typically, the condo’s policy will not cover any upgrades to the unit (i.e. the unit has had the flooring upgraded from carpet to hardwood flooring) or any personal belongings. The home owner’s insurance policy should include the additional value of any upgrades within the unit.

Submitted by Jean Lacroix & Scott Wilson