realtylinkonline

August 2002

Going condo crazy

More and more people are going condo. From luxury high rises in Vancouver's Coal Harbour, complete with lap pools and concierge services, to garden-style townhomes in Richmond, to low rise apartments in New Westminster, the range of condominium living options are attracting buyers.

Condominiums appeal to generation Xers, baby boomers, empty nesters and seniors. They're a great option for buyers looking to scale down, first time buyers wanting to get into the real estate market, and investors looking to purchase a long-term asset. They're so popular that over the first seven months of this year, condominium sales have increased more than 50 per cent over last year.

If you are considering a condominium for your next move, here are some things to know:

Strata Corporation

• As an owner of a condominium, you are part of a Strata Corporation, which is made up of all the owners in a building. A strata is the legal ownership for multi-unit complexes. As a strata property owner you have legal title of your unit plus a portion of the common areas such as the hallway, gym, garden, parkade and other amenities offered in your building.

Monthly Fees

• As a strata owner you pay a monthly fee for the upkeep of the common areas of the building. The fee will depend on the size of your unit and the amenities in the building.

Bylaws

• The Strata Corporation of any building has bylaws that govern the responsibilities of the owners. When reviewing the bylaws, it is important to note things such as the guidelines on rentals, children, age and pets.

Contingency Fund

• Strata units have what is called a 'contingency fund' where a portion of the monthly maintenance fees goes toward a pool of money that is a safe-guard for any major repairs such as roofing, plumbing or exterior painting.

Strata Council

• Homeowners elect a Strata Council to oversee the goings-on of the building. They hold regular meetings to discuss issues pertaining to the building and for owners to vote on purposed bylaws and building issues.

Minutes

• The Strata Council keeps records of their meetings to record what was discussed, and any issues and resolutions that were made. It is important for a new purchaser to review the minutes in order to know what is happening in the building or complex.
• When reviewing the Strata Council minutes, look for:
  • The amount in the contingency fund
  • A maintenance plan
  • Any past problems and review how they have been remedied
  • Proposed ideas for the building