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Displaying items by tag: condominiums
Buying a Condominium in the Resale Condo Market
Buyers must understand condominiums before buying! "Condos are a complicated purchase, first you must learn about the financial implications of the Condo" says Linda Pinizzotto, Sutton Group Realtor and Founder | President of COA the Condo Owners Association. It's time to invest in Real Estate but make sure you understand condominiums and work with a specialist.
Buying a Condo
Condominium Buyers must have knowledge relating to Condominiums, Condo Documents, By-Laws and Rules and Regulations of a Condominium.
Considerations when Purchasing
- Review the location of the Building and the direction the unit is facing
- Note any vacant land and/or parking lots - old buildings next door for possible tear down
- Review Layout and Design, both living space, balcony or terrace
- Check kitchens and Bathroom for water leakage under sink and around taps
- Check toilet; note if energy savings and/or dual flush
- Check all appliances
- Check caulking around windows (ie moisture)
- Confirm the Maintenance Fees
- Review the proximity of the elevators and garbage chute
- Check if the building has energy features and tri-sector garbage chutes
- Check if the building has sub metering for heat and/or hydro
- Check light fixtures ie capped in ceiling and/or wall switches
- Ask about the amounts of keys, fobs and mail box keys provided with purchase
- While you walk through building keep an eye for cleanliness and condition
- Note condition of elevators and license date (in every elevator)
- Keep an eye for Management Notices to see whats going on in building
Agreement of Purchase and Sale
- Have the Sales Representative explain the Agreement of Purchase and Sale
- Ask If this is an Assignment - buying before the Building is registered
- Ask Agent to explain Schedule A for Terms of the Agreement of Purchase and Sale
- Determine closing date and chattels /extras included in price
- Ask Sales Representative to include a clause that all appliances will be in working order
- Check parking space and/or locker spot if included in Agreement
- The Agreement of Purchase and Sale should be conditional upon your Lawyer reviewing the Status Certificate (see below)
Condominium Documents
Have your Solicitor Review during 2-3 Day conditional period
- Your Offer to Purchase will include a condition relating to obtain a Status Certificate which includes the Buildings Condo Documents ie Declaration,
By-Laws , Rules and Regulations, Financials, Building Insurance Policy and letter signed by a Board Member - Note: According to the Condo Act, Property Management has 10 banking days to provide Status Certificate
- Your Offer will also include a clause stating that the Offer to Purchase is conditional upon your Lawyer's review of these Documents, generally 2-3 banking days. If your lawyer approves you will be waiving the condition of review of Status
Questions to ask your Lawyer- Ask if there is any restrictions in the Documents relating to ie. Pets, Barbecues
- Ask about Short Term Rentals and if they are time sensitive or unlimited
- Ask if the Corporation includes any affordable Housing units
- Ask if there are any leasing equipment ie. boilers, communication room etc.
- Ask if the full Parking Garage is Owned by the Corporation
- Your lawyer should be able to check all information noted above
- Ask if there is any restrictions in the Documents relating to ie. Pets, Barbecues
Sale Finalized - Lawyer Reviews Documents
- Once the sale is finalized and the conditions are removed
- Book your Elevator with Property Management - may require a deposit
- Register as new Owner with Property Management
After you Move In
- Bring your new Fob transmitters to Property Management to program for you
- Remember Go to your Annual General Meetings
- Stay involved with your Condominium Building - Know your Directors
How Proxies Effect a Condo Election
Condo Owners please be extremely careful when you turn over your proxy to another person/s, a Condo Manager or Management Company or another 3rd party. The new licensing standards for Condo Management companies and Condo Managers prevents a Condo Manager in particular from soliciting for proxies either for voting and/or for quorum. Unfortunately, there is no exclusion at this time to prevent Condo Managers from receiving proxies and/or accepting the position as a proxy holder on behalf of an on-site or off-site Condo Owners who owns within the same Corporation where that Condo Manager represents.
The New Condominium Act and during the whole review process identified the need for licensing as a result of a thorough research into the industry. It appears as though more considerations and/or alerts need to be identified and regulated when it comes to Proxy Holders who have a conflict of interest in the voting process if there is a direct involvement with the same Condo Corporation.
It is imperative for Condo Owners to have fair and honest representation when electing candidates as a Board Members. Any manipulation relating to proxies and/or conflicts of those holding proxies can influence and control the final results of the elections. Remember candidates could be elected for up to 3 year terms and it is very difficult to remove Board Members in accordance with the Condo Act. It is best to ensure that Candidates win on their own merits and legitimate voting process.
Do you know or suspect if your condo building has this problem?
We would like to hear more from Condo Owners on this subject.
Please blog your comments on http://blog.coaontario.com/
The New Condominium Law Changes See: BULLETIN
Dear Condo Owners and General Public the Ontario Condo Act receives it's first overhaul in over 16 years with the introduction of Bill 106 Protecting Condominium Owners Act 2015.
Please follow the new Condo Act changes in this plain language guide.
The key initatives include:
- Protecting Condominium Owners Act
- Consultations
- Streamline dispute Resolution
- Enhance Consumer Protection
- Strengthen financial management
- Improve how condos are run
- Condo Manager Licenses
Ontario Government Site - Condominiums
Bill 106, Protecting Condominium Owners Act 2015
Status Certificate Forms
On March 26, 2018, the Ministry of Government and Consumer Services advised that the Status Certificates forms have been updated to take effect May 1, 2018.
Condo Forms for Status
Other Related Condominium Changes
Education requirements to get a condominium manager licence
Licensing CMRAO Condominium Management Regulatory Authority of Ontario
Condominium Management Services Act, 2015, S.O. 2015, c.28 Sched. 2
Condo Owners Rights and Responsibilities
Condo Act Review and the 3 Stage Process
Stage Two Solutions Report - COA pg65
Residents' Report - COA pg59
Stakeholder Roundtables Summary - COA pg9
COA and Condo Act Review
Condo Owners Association COA on Wikipedia
Disclosure:
The COA was a participant in the Condo Act Review and on the Home Protection Review regarding the Licensing of Property Managers and Management Firms and others......... Click How COA Helps
COA Endorses these changes
- Home Warranty Act needs a complete revision.
- Provincial Government consider a Condo Reserve Fund Bond to pay 1 to 1 ¼ % higher than Ontario Savings bond
- Reserve fund studies need to conform to proper financial numbers. Interest rates and inflation rates must be set by the Government.
- Improved Reserve funds interest rates with new Reserve Fund Bond
- MPAC should consider deficiencies in the Reserve Fund
- MPAC should consider different guidelines for property tax
- Arrange restrictions for Smoking Cigarettes and Marijuana in condo buildings
- Status Certificate - 10 banking days is too long of a period and jeopardizes sale
- Meetings with extensive costs considered should be part of status certificate
Did you know these condo facts?
- Over 1.6 Million Condo Owners in Ontario
- Over 580,000 Condo Units
- Over 6,750 Condo Corporations
- 1,000's Commercial Condos
Do you realize the importance of changing the following?
- Electronic Proxy system is required. Presently proxies are being forged to control votes
- Condo Lawyers should be appointed by Corporation, not hired by the Board
- By Laws should not allow customization Director qualifications or disqualifications
- By-Laws should not be allowed if the change is in contravention to the Condo Act
- All Boards and Condo Owner should be aware of the AODA
- Board Members should not manipulate the Condo Act forms for personal intentions
Let's work together for important changes to Condo Act
If your business relates to the condominium industry, get involved and advertise your business with the COA.
We have a strong representation for Condominiums and all levels of Government
- Influential and effective media relations to identify and enhance the operations within condominiums
- A wide range of information and opportunities
- In-depth industry knowledge and information
- Close working relationship with Industry Leaders
- Provides a huge potential to promotion your materials
- Huge potential to arrange group savings packages and benefits for you
The COA MISSISSAUGA is pleased to highly recommend various companies listed below. We feel they offer very professional, reliable and trustworthy services and/or products. Please click on their name to be connected to their respective website.
- Accounting
- Air Quality
- Automotive Alternatives
- Auto Services and Rental
- Builder Service & Services KamCrew
- Cleaners
- Cleaning Services
- Cleaning Services - Ducts
- Cleaning Services - Windows
- Computer Service & IT Solutions
- Condo Digital
- Condo Management
- Condo Rental Service Groups
- Condo Resources
- Condo Software
- Contractors - Electrical
- Contractors - General
- Contractors - Mechanical
- Design & Décor Services
- Door & Lock Services
- Elevator Services / Repairs
- Energy Services
- Energy Services - Efficiency
- Energy Services - Electricity
- Energy Services - Gas
- Energy Services - Water
- Engineering Services
- Environmental Consulting
- Financial Management - Halton Financial Services
- Financing Loans - Services
- Fire Protection
- Flooring Broadloom, Carpeting & Mats
- Glass Aetna Glass and Mirror
- Home Care
- Home Finishing
- Home Inspections
- Home Office Furniture
- Home Services
- HVAC Heating | Heat Pump
- Insurance
- Internet/TV/Phone Services
- Junk Removal 1-800-Got-Junk
- Landscaping & Gardening Services
- Laundry Services
- Legal Services - Ronald H.A. Van Der Steen
- Legal Services - Calvin Barry Criminal Lawyers
- Legal Services - Condo Law
- Lighting Supplies & Services
- Maintenance Services - Andelle Maintenance
- Mediation/Arbitration
- Minute Takers Board Meeting
- Mould Detection & Remediation
- Moving & Storage
- Odour Control - Chemical Relief
- Paint, Primer & Sanding - Sherwin Williams
- Parking Equipment & Revenue Systems
- Parking Management/Cleaning Services
- Paving Interlock, Quartz and Stone
- Pest Control
- Pet Services
- Photo Videos and Matterport
- Plumbing Services
- Real Estate - Linda Pinizzotto Real Estate Group RE/MAX
- Recreation & Fitness Equipment | Repair
- Renovation KamCrew Custom Build
- Rental & Tenant Services
- Restoration Services
- Retirement Homes
- Roofing
- Roofing - Green Energy
- Security Systems - PJS Security
- Seniors
- Signs and Awnings - Signarama
- Snow Removal Services
- Sound Control
- Storage - Public Storage - 2330 South Sheridan Way
- Superintendent Services
- Technology - IT Mayday Computer Services
- Video Surveillance Networks - Local Security
- Waste Services
- Water Proofing & Systems
- Website Sales & Design - IT Mayday
NOTICE TO USERS:
Disclosure: COA has partnered with these companies on previous events
- Allstate Insurance of Canada
- International Home & Garden Show
- Clorox Canada – Glad
- Entire Imaging
- Geep Electronic Recycling
- Joseph Estate Wines
- Vision Quest
Condo Owners Association accepts no responsibility for any loss or dissatisfaction arising from any use or contractual relationship of services, or purchases to include incentives programs that Condo Owners may experience through Related Services Companies of the Condo Owners Association
New Forms
Links to the mandatory forms to use under the Condominium Act.
They are to help facilitate and standardize communication between Condo Owners and Boards. The majority of the forms are mandatory and many were issued on November 1st, 2017. It is best to use these fillable forms on Internet Explorer.
You also need the latest version PDF version (v. 8 or higher).
If experiencing difficulties with the links below you can:
- Right-click on the form, select “open link” and save the form on your computer;
- OR Click on the Printable version below (second bullet for each forms).
Information Certificates
- Periodic Information Certificate
- Information Certificate Update
- New Owner Information Certificate
- Notice of Online Posting of Information Certificate
Meeting of Owners (plus AGM)
- Preliminary Notice of Meeting of Owners
- Submission to Include Material in the Notice of Meeting of Owners
- Notice of Meeting of Owners
- Proxy Form
- Notice of Meeting of Owners (when quorum is lost)
Records of the Corporation
Various other Forms
More Condo Related Forms are available here
Click your COA Division and City Hall
Click for City Website |
Click for City Website |
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Toronto
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Status Certificates and why do you need one?
A status certificate is the report as per Section 76 of the Ontario Condo Act which outlines the current state of a Condominium Corporation. It contains an assortment of extremely important details on your condominium. A key item noted on the status certificate is any large increases which may come into effect, special assessments and any arrears or liens on any particular suite or the Corporation.
A Status Certificate includes:
- Condominium Declaration
- By-laws, Rules and Regulations
- Copy of the Insurance certificate of the Corporation
- Copy of the Corporation Insurance Certificate
- Most Recent Financial Statements outlining operating budgets, reserve fund and any surplus etc.
- Cover letter with Board of Directors signature confirming contents of Status Certificate
- Notification of Special Assessments as ratified by the Board of Directors
- Notification of any large increases and/or any items of importance
Buyers Status Condition on Agreement of Purchase and Sale
The status certificate discloses information to a potential Buyer about the Condominium. A Buyer purchasing a condominium should include a Status Condition clause where the Sellers will provide the Buyer with a Status Certificate within 10 days. The condition will include an additional 3 banking days for the Buyers Lawyer to review the Status to their satisfaction. If the Status is acceptable to the Lawyer, the Buyer will be instructed to waive the Condition on Status Review based on their Lawyers recommendation. They will sign a waiver to release the condition and their Purchase and Sale Agreement is now firm. In the event that the Buyer's Lawyer is concerned about anything on the Status Certificate and the concern cannot be remedied, the Lawyer will most likely recommend that the Buyer not waive the status condition and release the Agreement of Purchase and Sale. The Buyer will sign a Mutual Release to terminate the Agreement of Purchase and Sale with the Seller and the Listing Brokerage will return the Buyers deposit without interest or deduction. The Buyers deposit would have been held in trust for the Buyer pending the completion of the transaction. In many cases the Status Certificate may only be valid for 30 days as per the Buyers Lawyer's request however traditionally it should be 60 days.
Status Certificate Requisition
Whether the Seller requisitions the Status through an online portal or can also submit a written request by contacting their Property Management office, the cost is approximately $125.00 - $150.00 depending on each Corporation. Not all Corporations have their Status Certificate available online. According to the Condominium Act, a Provincial Legislation, the Condo Corporation has 10 days to satisfy the request. It can either be a hard copy from the Corporations Property Management office or through an online portal such as Conduit, assortment of pdf files with the above information. It will also include a cover letter to identify the legal description of the specific condo unit as well as the current maintenance fees attached to that unit along with the costs being covered in the maintenance fee.
Periodic Information Certificate
In some Corporations, certainly those who have Board of Directors who practice transparency in a stronger fashion do sent out a Periodic Information Certificate (PIC) twice per fiscal year to all Owners. Generally it is within 60 days of the end of the first quarter and 60 days of the end of the third quarter. This PIC includes important information regarding the Board of Directors, the corporation finances, insurance, reserve fund, legal proceedings and other matters such as changes to any By-Laws and/or Rules and Regulations.
Building or Developer preparation of Original Condo Declaration and By-Laws
The Ministry of Government and Consumers Services oversees the Condominium Act. In March 2010, Founder CEO of the Condo Owners Association, Linda Pinizzotto challenged the Act when she created the COA. The first plan of action was to meet with Minister John Garretson, of the McGuinty Government. It was an enormous challenge and before the Province experienced a change in Government from the McGuinty to the Wynn Government, Premier Dalton McGuinty announced the CONDO ACT REVIEW
Human rights Code of each Province
It is common for the Builder or the developer to draw up a set of rules and regulations along with the Builder's law firm to prepare the declaration and by-law. Section 58 (1) of the Act must promote safety, security and welfare of Owners and their property as well as the Assets of the Corporation.
Buying a Condominium 
If you are considering buying a condo, make sure you research before signing on the dotted line says Linda Pinizzotto, Realtor and Founder President CEO of the Condo Owners Association.
Linda has provided COA with an extensive portfolio of information for your protection and has recently launched her Condo Radio.com
The New Condo Act offers more Consumer Protection
New Vs Resale Condominiums
- Buying a Resale Condo on the market
- Buying a New Condo from a Builder
- Understanding Mortgages
- How Maintenance Fees affects Value
- How Low Reserve Funds affects Value
The Importance of Status Certificates
Buyers must have a condition requesting a Status Condition on their Agreement of Purchase and Sale. The Condominium Corporation has 10 days to provide the Status Certificate and relating documents to the Buyer. The Buyer should have 2-3 days to have their Lawyer review these documents to his/her satisfaction. If the Buyer's Lawyer is acceptable to these documents; the Lawyer provides recommendation to the Buyer to release the Status Condition and finalize the sale. Lawyers will generally not approve the Status, documents etc. if the Condo Corporation has financial concerns on the building and/or unit. The Buyer. would normally be advised not to purchase the unit.
The Status Certificate package includes
- Condominium Documents
- Auditor approved Financial Report
- Reserve Fund information and accompanying confirmation
- Insurance Company Letter confirming up-to-date condo building insurance and particulars
- Cover letter from the Board outlining unit maintenance fees, arrears etc. relating to Unit
- Any additional information relating to the condominium building ie Loans, Liens, Law Suits
- Is the Building Registered with the Condo Owners Association
Condo Reserve Funds and Operating Budgets
COA believes Condo Owners and all Home Owners should understand the operations of a Condominium and their financial structure, in particular operating budgets and reserve funds.
The financial package of the condominium buildings makes a huge impact on value therefore affecting the mortgage and real estate value. There are key considerations to maintaining value in a condominium building aside from location and good management/maintenance. The Reserve Fund is extremely important, see notes below:
- High reserve funds creates good value within a condominium corporation
- Board of Directors should have studies to determine that the contributions for reserve fund are adequate to provide for the expected costs of major replacement (per item 4 below)
- Board of Directors who follow study reports for major repair and replacement of the common elements and assets of the corporation (as mandated by the Condo Act 1998) helps maintain value of the building and units
- Boards of Directors decisions must comply to all mandates of the Condo Act 1998
Learn more about the Condo Act
COA review on Cost Savings Initiative Relating to Hydro
COA has reviewed documentation on discussions between the Government, Energy Consultants, Ontario Energy Board, Ontario Hydro and OPG.
A Condominium budget experiences about 30% of their operating budget for utility costs. The difference between Condominiums where the hydro costs are included in the maintenance fees vs those condos where the units are self metered can make a huge difference on maintenance fees. The Board of Directors needs to consider energy savings initiatives for those buildings which are all inclusive of hydro.
The key issues tend to be:
1) Older appliances - not Energy Star - Buildings built 2006 or prior could be experiencing a huge drain on hydro costs - Board needs to discuss initiative on replacements
2) No conversions to LED lighting - Building common elements and units - Board needs to consider working with Owners to replay in-suite lighting
3) Fan coil systems - no energy efficient - Buildings built 2006 or prior could be experiencing high energy costs - Board needs to discuss initiatives on replacements
Hydro Facts to view