If you are thinking of buying a property in co-ownership, it is necessary to take time to check out every detail to avoid any bad surprise. In fact, many key components must be investigated, such as the location, the common areas, the building’s structure, the financial statements, etc. Let’s look at what you need to know before making your decision.
The location
Assessing the property’s geographical location is important to know if it answers your accessibility, transportation, and safety needs.
The list of all the co-ownership’s common services and installations
Validate that the services offered by the co-ownership will be useful to you, because the presence of a swimming pool, a spa, a gym, etc. impacts common expenses and contribution to the contingency funds.
The declaration of co-ownership, more precisely the co-ownership’s rules
Verify that you understand the co-ownership’s rules and restrictions, such as restrictions on the use of the unit, restrictions on animals and your obligations in terms of maintenance and insurance.
The co-ownership’s most recent minutes, financial statements, budget and finances
Remember to check if the condominium has enough funds to cover current expenses and necessary repairs.
The seller’s declaration
The Seller’s Declaration provides information about the property, such as the year of built, current mortgage status, roof condition, damages, renovations, etc. However, the seller may not be aware of all the issues, so it is important to have the property inspected by a qualified professional to ensure that all potential issues are identified before deciding to purchase.
Future Charges
Request a quote for any upcoming major repairs and home improvements. Don’t forget to ask if there are any upcoming projects and if one or many special contributions are to be expected.
The most recent contingency funds report
The examination of this document will help you decide if the contribution to the contingency funds is fair or if there is a shortfall that the co-owners will have to fill.
The DRCOP, commonly known as the Request for information to the syndicate of the co-ownership
This document will help you see if real estate transactions are seamless by allowing you to get strategic information regarding a co-ownership.
The structural condition
Make sure that the building structure is in perfect shape and that there are no important matters like leaks or foundation problems.
Location certificate
This is a document prepared by a land surveyor that includes 2 parts: the situation and condition, and the state of conformity (or non-conformity).
The Most recent insurable value report
The insurable value report is a document that determines the reconstruction value of the property in case of damage or complete destruction. It is important to certify that the property is properly insured, and that the insurance cover is adequate to encompass the reconstruction costs.
Basic Finishes Register
This is a document that describes the construction materials and finishes used for the co-ownership’s common areas and units. You must ensure that the materials used are of high quality and that they meet the current construction standards.
List of Ongoing Disputes
Verify to see if there are any ongoing disputes involving the co-ownership. This could affect property value and common charges. If the litigation is ongoing, you must know its nature and its potential impact on the property.
The history of Claims in Recent Years
This can give you an idea of the quality of the co-ownership’s construction and you must check whether there have been major disasters such as floods, fires, or structural problems, and to understand how they were handled.
Sales history (also known as comparable)
The sale history can provide information about demands for the property and pricing trends in the co-ownership. It may also reveal information about the unit’s previous owners or tenants, such issue with the co-ownership and the neighbours. You must check the property’s sale history to assess its current value and future potential.
In conclusion, the purchase of a condominium requires careful attention to detail and careful verification of key factors before making a final decision, to avoid potential problems following the transaction.
To help you navigate this complex process with sharp professional guidance, contact me: 📲 (514) 975-1133
You can also read this article on the new Law 8.
