If you’re in the process of buying a home, you probably have due diligence on your mind. The last thing you want is to encounter an unpleasant surprise after closing. What you may not know is that if you’re looking at condos, the questions you need to pose are different than those you would ask if you were house hunting. Getting the answers you need is the key to buying the unit of your dreams—and avoiding future regret.
If you think you’ve found the perfect condo, here are seven questions you should ask before moving forward with your purchase…
1) How will my maintenance fees break down?
Your condo fees will allow you to enjoy a low-maintenance lifestyle. They’ll reflect your share of the ongoing costs of building repairs and upkeep—which you’ll take care of in one convenient monthly payment. While condo owners typically receive great value for their fees, it’s always a good idea to know what you’re paying for. Be sure to ask management exactly what your condo fees will cover. You should also request a copy of your status certificate, which will provide a detailed breakdown of where your money will be going.
2) What will my insurance cover?
As a condo owner, you’re required to have insurance. You’ll receive compulsory coverage, which should be included in either your purchase price or in your statement of adjustment. Typically, this protection will extend to common areas and “standard units” (a term that usually refers to the value of your condo minus any improvements you make). Some owners also purchase additional insurance for more extensive coverage. The important thing is to know precisely what type of protection you’ll be receiving once you make your purchase.
3) Can I get a copy of the status certificate?
If you’re thinking about buying a particular condo, it’s a good idea to obtain a copy of its status certificate. This crucial document will contain everything you need to know about the unit to make a fully informed purchase—from building rules and regulations to documents that paint an accurate financial picture. Ordering a status certificate will cost $100, though the seller is often happy to pay this fee. Be sure that you also get your lawyer to review the status certificate closely before closing!
4) What is the management team like?
If you’re seriously considering a particular building, you can (and should) ask questions about the property manager and board of directors. It may also be helpful to request a copy of the minutes from the board’s most recent meeting. Perusing this document will give an idea of the issues impacting residents—and how they’re being dealt with. Last but not least, look at the amount of money in the reserve fund (which is set aside to cover unexpected costs, such as major repairs or replacements). Knowing how much this fund contains can provide insight into a building’s financial health.
5) Are there any lawsuits I should know about?
Is the condo corporation that runs the building you’re considering involved in any litigation? A careful review of your status certificate will tell you, but it’s never a bad idea to ask. Whether or not a lawsuit will impact your decision to purchase a unit will likely depend on the circumstances, so it’s wise to get the details. Is the condo corporation being sued, or is it bringing about legal action against another organization? How long has the lawsuit been going on? Getting the answers to these questions will help you determine whether you’ll be seriously financially impacted by the ongoing legal situation.
6) How is the soundproofing?
If you’ve ever lived in a condo building where noise was an issue, you know how much it can impact your quality of life. If you haven’t, you certainly don’t want to get caught off guard by the clatter of dishes, the barking of a dog, or the sounds of a late-night party coming through your walls. That’s why it’s so important to ask about soundproofing. Talking to the seller about their experience may be helpful, but you can also ask the property manager more specific questions. What kind of soundproofing was installed, and when? Newer buildings tend to be less noisy, since building codes have improved in recent years.
7) Can we talk about the rules?
Your condo will be your property, but the building you live in will also have its own set of rules that you have to abide by. They’ll cover everything from whether you can own a dog to how many guests can use your amenities at any given time. While you can find this information in your status certificate, you may also want to clarify any points of confusion with management. Nobody wants to be taken to task for breaking a rule they didn’t understand!
When you find a beautiful unit that appears to check all of your boxes, it’s easy to get excited—and you should! Just don’t forget that a condo will likely be one of the biggest purchases you’ll ever make. By asking the important questions now, you can avoid an unpleasant surprise (and buyer’s remorse) later on.
Ready to buy the condo of your dreams? Reach out today to learn what’s on the market—and how to make a smart, well-informed purchase!