The status certificate is a document, as per the Condo Act, that provides a stack of information on rules, declaration, by-laws, budget, reserve fund, insurance, management contract, minutes of the last annual general meeting, mention of any lawsuit involving the corporation, and any arrears or lien that a particular suite might have. This certificate can run into one hundred pages.
Firstly “Title” describes the right of onwership, When you purchase a home the “Title” is transfered into your name you are the new home owner.
Title insurance is an insurance policy that protects you the home owner, against any challenges to the ownership of your home or from problems related to the title to your home. The policy covers losses due to title defects,also known as “cloud on title”. There are many differents types of defects they include: encroachments,unpaid leins, outstanding work orders etc.
Many residents in condos complain about dogs being allowed without a leash in corridors, elevators, lobbies, and grounds as well as exclusive-use backyards in townhouses. Others do their business in the common grounds, in the flower beds, and some pet owners do not do the “poop and scoop” drill.
In some condos, dogs urinate on carpets but managers cannot charge the responsible owners because it is difficult to establish proof. Unfortunately, residents who complain refuse to point to the culprits. Managers need help if they are to stop a problem from occurring!
While some condos accept dogs, they have the right to regulate weight and number. A condo may allow up to three pets, for instance, a cat, a dog, and a bird. Or tropical fish or small turtles. But only one dog per suite is allowed.
One has to be realistic: For instance, a condo with 100 units that allows pets may have 25 suites in which there is a dog. If two dogs were allowed, the dog population could reach 50 or even 100. The barking alone would be unbearable in such a small space
Haven’t come accross too many of these scenarios, but something are you condo owners and prospective buyers NEED to know.
A special assessment is an additional payment or a levy that a condo board has to impose when unexpected shortfalls or unexpected expenditures occur in the budget, or when an expensive system has to be replaced (i.e., windows, mechanicals) and there is not enough money in the reserve fund to cover for it.
Special assessments often occur in condos that were built before 2001 when reserve fund studies were not mandated by the previous Condo Act. As a result, developers and boards failed to build up sufficient reserve funds for future replacements.
It is the duty of a board to impose a special assessment when necessary and owners have to comply, as is the case for fees. Owners cannot vote on whether or not to levy a special assessment.
Naturally, a board that has failed to have a reserve fund study or has caused the situation that led to the assessment can be voted out by owners at a requisitioned meeting or even sued for lack of due diligence. But this is easier said than done!
Special assessments can’t be levied if there is a large surplus or if the reserve fund is sufficient to cover the replacement. However, if the replacement depletes the reserve fund, then the board has to levy an assessment to bring the reserve fund up to date. Or the board may choose to raise fees in order to top off the reserve fund.
Special assessments can’t be levied for repairs that are merely cosmetic to embellish a condo or to accommodate someone’s taste for luxury!
Special assessments require careful consideration by boards and adequate communication with owners, including letters, notices, and even an information meeting to explain the necessity as well as what would happen without this assessment.
There are various ways of levying an assessment: It can be added to the fees for an X number of months (less painful approach), or paid in 2 to 4 instalments, or in one lump sum payment.
Special assessments are like a fee and are proportional to the % of common expenses each unit has, as per the declaration.
As soon as special assessments are contemplated, they have to be noted in status certificates so that potential buyers are made aware of this forthcoming expenditure.
Buyers in the Gta are finding it difficult to hide their frustration as their bids on properties are rejected over and over. Due to the lack of supply “ Bidding Wars” are common in the market place. Fewer and fewer properties are causing the market to reach near record highs as first time buyers scramble to get their feet in the door. While higher priced homes are beginning their slow return to a more normal and stable place prior to the near depression predictions.
Sales Reps from all over the Gta scour The Toronto Real Estate Boards Mls system in search of homes for their buyers only to find disappointment at the offer presentation, when they are faced with a multiple offer scenario. Oh yes these are the best of times for sellers, but the poor buyers are paying the price.
You can no longer predict what Market Value is. It is the old adage Market Value is what an informed buyer is willing to pay and an informed seller is willing to sell.
And so goes the Real Estate Cycle unpredictable as it has always been.
I’m Victor Menezes form mycondonetwork.com with Off The Cuff.
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Popular with urban sophisticates and lauded by architecture critic John Bentley Mays, highly-successful Richmond Town Manors is now complete on Richmond Street at Strachan Avenue, between King and Queen Streets West, just south of Trinity Bellwoods Park in Toronto. Only three of these choice residences remain, offering convenient living in modern surroundings inspired by the geometrical abstracts of master Dutch painter Pieter Mondrian. Hurry to take advantage of this exclusive opportunity in one of the city’s most up-and-coming neighbourhoods.