Condo Owners in Good Company

You’ve signed the papers on your new condo and can’t wait to move in, but are there things you need to be aware of other than what time of day the sun graces your balcony and how many appliances are included in your new digs?

Luba Fillipoff, Condo Support Coordinator for the Calgary Real Estate Board (CREB) says that while buying into a condominium property opens up home ownership to more people, it is just like becoming a shareholder of a company.  “It’s really is buying into a corporation,” says Fillipoff.  “You are just one person in a large group, so to make any changes, 75 per cent of the group has to agree on it.”

Particularly important, says Fillipoff, are condo bylaws governing each complex.  Knowing details such as whether the board allows you to put up Christmas decorations, have flower boxes on balconies or pets in the building are better found out before taking the ownership plunge.

While condo buyers may feel as though they are just purchasing one suite and can breather easier in knowing they are finally escaping the pitfalls of renting, it’s important to remember they also share ownership of the common property, or anything outside their unit, say Fillipoff.

A good first step when condo shopping might be hiring a realtor who specializes in this type of home ownership, to help double-check how the condo board in question goes about running its affairs.  “Every board and every building is different; that’s why the reserve fund study that came into effect a few years ago is so important,” says Fillipoff.

The reserve fund study is a requirement of the Alberta Condominium Property Act, which reports on the state a building’s “capital components” such as the roof, sidewalks, siding, heating, security systems and elevators.  Especially when buying an older condo, it’s a good idea to get a copy of this study to see what repairs are or will be needed that could contribute to higher condo fees or even a potential “cash call” for owners down the road.

“Do your homework.  Have your condominium documents checked by a professional,” advises Fillipoff.

It’s never a bad idea to solicit some expert advice when buying a condominium, add Bernie Winter, author of 10 Secrets to Surviving Life in a Condominium and owner of the organization Condo Check.  Winter suggests finding out first how much condo fees are for a building being considered, as well as what they will cover, to see if it will even fit into the budget.  Missing a payment or just not paying the fees because you think they’re too high is not an option.  You cannot just not pay.  The (condo) board has a lot of clout,” says Winter.

Condo fees should not be looked at as a penalty or negative aspect of condominium ownership, but instead a means to keep a building looking its best, she adds.  “It’s a contribution to the maintenance of a building and a way to protect your investment.”

Condo shoppers and owners unsure of what types of documents they need for their condo purchase can get a full list at www.condo-check.com, but financial statements, at least a full year’s worth of condo board meeting minutes and certificates of building insurance are a few things to look for.

“If you were buying into a business you inherit the liabilities and assets – in a condo we don’t think about that – we think about the view from the window, says Winter, whose Condo Check also provides courses on how to implement better condo boards and a document review service.

While condo living may not be for everyone, this type of home ownership has grown by leaps and bounds as Calgary expands and can certainly offer its share of lifestyle perks.

“It’s a different type of lifestyle – it’s low maintenance and you have the benefit of neighbours close by for security,” says Fillipoff.  “You can lock the door and walk away and you don’t have to worry about mowing you lawn or shovelling the walk.”

Tune into Shaw TV’s Condo Living with host Barb Mitchell every Wednesday, Saturday and Sunday for more helpful hints on buying and owning in the Calgary condominium market.