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7 things to check before buying a condo

March 25, 2025

Whether you’re looking for a first home or you have a house but would like something simpler, it’s worth knowing that many co-ownerships take care of snow removal and other chores for you. Life in a condo has a lot going for it, but there are several things you should look into before you buy. And here they are.

Take your time before buying

1. Important documents: Does your purchase offer give you enough time?

Make sure the conditions of your purchase offer leave you enough time to pore through all the necessary papers, like the co-ownership declaration, financial statements, condo rules and location certificate. Ask the sellers for them, and if they don’t have these documents, ask the condo syndicate.

Did you know?

In your purchase offer, you can indicate that the offer is conditional upon obtaining and reviewing the co-ownership declaration. Be sure to do so!

Check the condo’s financial situation

2. Condo fees: What other contributions will you have to make?

Condo fees can vary from one co-ownership to the next. The fees might include things like snow removal, landscaping and access to a gym or pool. As with any other budget, it needs to be balanced. In other words, cash inflows should cover expenses. If the financial statements show a deficit, you might be charged a special assessment the following year.

3. Contingency fund: Does it meet regulatory requirements?

Bill 16, which was passed in December 2019, states that co-ownerships will need a contingency fund study and a maintenance log, when the regulation outlining the requirements comes into force. The bill could be adopted shortly. In the meantime, the condo syndicate should ideally periodically review—every five years, for example—the cost of major repairs and replacement parts in common areas, to confirm that enough money is being set aside.

Don’t leave these questions unanswered:

  • Does the condo syndicate for the building you’re interested in already do this type of review?
  • What work has been done recently and what’s to come based on the maintenance log?
  • Is the contingency fund enough to cover the costs, or will a special assessment be necessary?

Surround yourself with professionals

Don’t hesitate to reach out to a legal professional to help you interpret legal documents.

4. New legal requirement: How much is in the self-insurance fund?

On April 15, 2022, Bill 141 provided that condominiums must have a self-insurance fund. This means that at the end of the first year, the fund must have at least 50% of the highest deductible amount, and 100% by the end of the following year. If something happens and money needs to be withdrawn from this fund, the condo syndicate must collect a special assessment from its members the following year. The goal will be to fully replenish the fund. The maximum assessment that can be required in a single year is 50% of the highest deductible amount. If need be, the difference will be claimed the following year.

Does the condo you’re interested in have a self-insurance fund?

  • If it’s not at 100%, how much will you need to pay?
  • Has damage occurred in the last two years? If so, will it require additional payments?

Home insurance

Even if the co-ownership is insured, as a condo owner, you need your own insurance to help protect all the things that your condo syndicate’s policy doesn’t (condo corporation). This insurance covers:

  • Your liability in case you unintentionally cause someone bodily injury or property damage
  • What’s inside your condo, namely, your furniture and belongings
  • Improvements made to your condo unit’s original layout

Contact your insurance provider for a personalized analysis of your situation.

Make sure you’ll enjoy your new living environment

5. Maintenance: Who’s responsible for building management and upkeep?

Minor repairs, snow removal, landscaping maintenance and maintenance of common areas are often handled by service providers. In some smaller buildings, the co-owners prefer to share tasks instead. If this is the case for the condo you’re interested in, are you ready to take on the required Minor repairs, snow removal, landscaping and common area maintenance are often outsourced. In some small buildings, condo owners prefer to divide the work among themselves. If this is the case for the condo you’re interested in, would you be able to do your share of the work?

6. Meeting minutes: What can you learn from the recent condo meetings?

Records are kept of condo syndicate meetings and annual general meetings in the form of minutes. These documents contain valuable information about your future home. Did anything significant happen, like major repairs or a conflict among co-owners? Did anyone make any noise complaints? Are new rules being considered?

7. Syndicate bylaws: What are the condo rules?

Each co-ownership has its own set of rules. Do they meet your expectations? For example, you might not be allowed to do short-term rentals or have a BBQ on your balcony. It’s also worth knowing if there are rules against certain renovations you might interested in.

Whether it’s your first home or you’ve done this before, these questions will give you valuable information so you can make an informed decision. The important thing is to avoid surprises so you can make the most of your new home.

 


These tips are provided for information and prevention purposes only. They’re general in nature and Desjardins Insurance can’t be held liable for them. We recommend using caution and consulting an expert for comprehensive, personalized advice.