- Information to Obtain Prior to Purchase. If you are purchasing a new condominium, obtain a copy of the prospectus. The prospectus provides details of the vendor, the financial history, the details of the common facilities and services, property management contracts, unit entitlement, parking, etc.
- If you are purchasing from an existing owner, obtain a copy of the bylaws, the rules and regulations and the annual budget and financial statements. Also ask for a copy of the strata plan setting out the boundaries of the unit and a copy of the minutes of recent strata council meetings. Find out if owners are permitted to rent their property.
- Ask about the amount of your share of the common expenses, the amount of reserves, the need for major repairs, and the property management agreement. Find out what services are covered by your maintenance fees and what special assessments have been or are likely to be made.
- Property Management. The strata corporation is usually run on a voluntary basis by the owners. Therefore, the corporation usually contracts with a professional property management company to handle its day to day business.
- Maintenance Fee. The strata corporation prepares an annual budget of anticipated expenses and assesses each owner a portion based on the unit entitlement. Payments are usually made monthly.
You may wish to buy an apartment in a “cooperative”. The cooperative society owns the land and building in fee simple and you, as a cooperative member or shareholder, have the exclusive right to occupy your particular unit.
Mobile Homes or Trailers
Mobile home or trailers may be on a pad which you rent in a mobile home park. They can also be placed on a lot you own in “fee simple”.