WHAT CONDITIONS YOUR CONDO OFFER SHOULD HAVE
Historically for house purchases, there have been two primary conditions that most offers have included. They are conditions on
- Home inspection
If you’re buying a condominium townhouse, you’d certainly want to have an inspection which would include the exterior of the building including the roof and windows, and all the interior systems such as heating, cooling, central vac, plumbing and wiring.
A home inspection is more optional for a high-rise apartment because it doesn’t have all of those systems. The home inspection company Carson Dunlop outlines their suite inspection as follows...
A Carson Dunlop Condominium Inspection is a comprehensive evaluation of the building systems and components within a condominium unit. Common elements are not included in the inspection since they are covered by the technical audit performed by the condominium corporation and are a shared responsibility among all unit owners. The inspection includes major appliances as well as maintenance and service issues for the unit. The inspection cost is typically in the $450-550 price range.
So it’s really up to you, and the interior condition and age of the condo suite, if you want to do the inspection or not. If not, then we would not include the home inspection condition.
You of course want to have a full mortgage pre-approval commitment in place before starting your home search. Depending on your financial strength, credit score and size of down payment, you might feel confident in not having a financing condition but that is a very individual choice and must be discussed in detail with your buyer agent.
So we’re left with the Status Certificate condition which reads as follows...
SELLER agrees to supply to the Buyer at the SELLERS expense within 10 banking days from the date of acceptance of this offer a complete up-to-date Status Certificate made out in the name of the BUYER and to include copies of the building Rules and Regulations, current financial statements, budget, declaration and all other pertinent information.
This offer is CONDITIONAL upon the Buyer being able to inspect the following condominium documents (the latest Budget for the Corporation & the Latest Financial Statement & the latest Status Certificate showing the reserve fund balance) within THREE banking days of receipt of those documents and finding the said documents to their satisfaction, otherwise this offer becomes null and void and the Buyers deposit shall be returned in full without interest or deduction. This clause is inserted for the sole benefit of the Buyer and may be waived at their sole option.
The Status Certificate is actually a thick bundle of documents which includes the following...
- The actual 3-page Status Certificate
- The condominium corporation Declaration
- A copy of the condo Rules & Regulations
- The condo Financial Statements
- The Budget for the condo corporation
These documents are important to inspect because they will reveal the correct unit, parking and locker numbers, what the exact condo unit maintenance fees are (on occasion different from what the MLS listing said), whether there are any lawsuits outstanding against the corporation, when the last Reserve Fund Study was completed, what the rules are about interior unit renovations or having pets and whether any special assessments are contemplated or pending.
The condo corporation, by law, must provide the Status Certificate paperwork within 10 days of receiving a request for it although many corporations give it to us faster. About 50% of the time now we will get this package delivered to us online in the form of a set of PDF documents.
Whether paper or PDF, the complete package is then passed on to the buyer’s lawyer for a review within three banking days as per our clause above.
Once the lawyer reviews the documents, and assuming no red flags have been found, he or she will give you the go-ahead to sign a Waiver to remove that condition out of the offer and make your purchase firm and binding.
As you can see, there’s a lot to understand about buying a condominium and you shouldn’t start into the home buying process without being a smart, educated buyer.
One of the best steps condo buyers take is to have a buyer planning session with their Realtor as soon as they start thinking about making a purchase. We’d meet at a coffee shop near your home or office, at your residence or at one of my RE/MAX offices.
Get started today… CLICK HERE to schedule your Buyer Planning Session or simply email or text me.
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Our first-time and move-up buyers have told us that being able to meet with us on a casual basis as early in the process as possible, even if their purchase date was 6-12 months away, really worked the best for them.
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- Join us for a Market Experience Tour - pick your favourite neighbourhoods and price range
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- Don’t start your home buying experience on the wrong foot - Meet for a Buyer Consultation first!!
Don’t make the same mistake. Let’s set a time to meet and go over how the complete home buying process works, find out what your likes and dislikes are and what pitfalls you’ll want to avoid, before you seriously start looking for a house or condominium.
This is the best 90 minutes of time you’ll ever spend - set up your private Buyer Consultation.