Entries categorized as ‘Condominum Information’
It has just been announced that the Provincial Government has agreed to allow Condominium Corporations which came into existence before May 5, 2001 an additional 5 years to bring the Reserve Funds up to the required amount.
In other words, the Condominium Act, 1998 which came into effect on May 5, 2001 had required existing Condominium Corporations to top-up their Reserve Funds no later than May 5, 2011; those Corporations will now have an additional 5 years to complete the top-up required, in other words until May 2016.
This change will come into effect on July 1, 2010. The purpose of the extension is to help to reduce the impact that the HST will have, upon its coming into force on July 1, 2010.
Provided courtesy of Martin K.I. Rumack, Barrister & Solicitor
Martin K. I. Rumack is a Toronto based Barrister and Solicitor and is a regular contributor to the Muddy York Blog. Contact Information: 202 – 2 St. Clair Avenue East, Toronto, Ontario, M4T 2T5, Tel: (416) 961-3441 (Ext. 26). Mr. Rumack can be mailed directly at martin@martinrumack.com.
Categories: Condominum Information
Tagged: condominium corporations, condominums, HST, reserve funds
January 10, 2010 · 1 Comment
Condominiums are quickly becoming a large part of life in Toronto – 20,000 new units are underway to become available in 2010, and the Toronto condo market seems to have notoriously avoided the economic repercussions of the recession.
“We have become the largest condominium market in North America in terms of new production – bigger than New York,” condominium consultant Barry Lyon told CBC last week. City banks provide insurance that the condominiums being built will be bought by somebody, as 70 per cent of the units must be sold before banks will lend them any financing for breaking ground, proving that there is definitely a demand and that people are buying them.
One of the largest driving factors in the condo boom is the amount of younger people buying them. Condos are an affordable option for buyers looking into first-time home ownership, which provides a much different view on condo life now than 20 odd years ago when the majority of condo owners were retirees. Nowadays, it’s the reverse – 80 per cent of condo owners in Toronto are young, first-time buyers.
Condos have often been considered somewhat beneficial to the environment, increasing development upwards, rather than encouraging urban sprawl outwards into surrounding areas. One way the city of Toronto is trying to take advantage of this concept is by implementing a policy last week that forces condo developers with more than 20 units who are building on transit lines to buy every unit in their buildings a TTC Metropass for a year. Otherwise, they won’t get condominium approval from the city.
Described by city staff as a “transportation demand management measure”, councillor Howard Moscoe told the National Post last week, “I think we’re going to get awards for this all over North America,” and that the policy “will cause people on transit lines to abandon their cars.” The project’s main objectives are to reduce downtown Torontonians’ dependency on cars and encourage transit use. This will cost the developers an estimated $1400 per unit to be absorbed into their own expenses as this cannot be passed along to the buyers.
Categories: Condominum Information
Tagged: condominums, Toronto Condo Market, Toronto Condominiums
By Susan Eickmeier
A city councillor in the downtown Toronto area has put forth an amendment to the city’s building plan that would require builders to focus on adding more large, family-sized condos. The city’s plan currently puts more emphasis on increasing density in the downtown area and reducing the outward sprawl of residents, with not as much consideration to providing family-friendly amenities.
Adam Vaughan, councillor for the Trinity-Spadina ward, told the Globe and Mail this week that since he took office he’s asked developers to make ten per cent of their buildings three-bedroom units. This would allow a place for larger families that want to make the move to the downtown area, as well as encourage some of the condos to offer more family-oriented stores and services.
Builders have already started implementing recreation areas and day cares into their plans, but Vaughan said that is not enough to make it hospitable for families to move in. If there is no demand through the amount of children living there, there will be a lower enrollment at downtown schools and less services and activities that cater to children and their families.
Many people with children looking to move don’t often spend a lot of time considering condominiums. Much of the misconceptions about condominiums are based on the idea that they are usually better suited for the lifestyles of single people, seniors and younger couples.
All a condominium represents is a way for people to explore homeownership and still receive some of the perks involved with renting. Some of these benefits include security features, pools, tennis courts, board rooms and even bowling alleys – luxuries many homeowners would not typically be able to afford. Condominiums are low maintenance, the cost of upkeep is shared between residents and there is usually a superintendent on staff who can take care of your more basic repair needs, saving you the hassle of calling a plumber or electrician. Some tips when looking into the condominium market are:
- Get to know your neighbours, all around and above and below. Community is a large part of the condo lifestyle and being friendly with neighbours will only increase to your comfort level.
- Check out the neighbourhood for all the amenities you’ll need, such as recreation centers and family activities, schools and parks.
- Remind your family about appropriate noise levels while living in a condominium and ask about soundproofing.
- Ensure the floor plan, balcony and amount of bedrooms and bathrooms are suitable for you and your family.
With more emphasis on providing condominium neighbourhoods with services geared towards families and children, a condo can be a perfect way for families to begin experiencing homeownership.
Susan Eickmeier is a Sales Representative with Royal LePage R.E.S. Ltd/Johnston & Daniel Division working in the Central Toronto market. Susan is also a regular contributor to the Muddy York Blog. Susan’s website is located at www.susaneickmeier.com
Categories: Condominum Information
Tagged: condominums, Toronto Condo Market, Toronto Condominiums
By Martin K. I. Rumack
New taxes are never a good thing. The new harmonized sales tax (HST) which is effective July 1, 2010, will be tough on the housing industry and particularly on owners of condominiums, co-ownerships, co-operatives and houses.
In the past, the 8 per cent provincial sales tax has not applied to services, but that will change on July 1st. The new HST will combine the sales tax with the 5 per cent GST for a combined 13 per cent sales tax. For owners of condominiums, co-ownerships and co-operatives, it means many services that make up maintenance fees, such as hydro and natural gas, repairs and maintenance, landscaping, and contracted services will be taxed at the new rate. It’s estimated that maintenance fees will rise by 6 or 7 per cent.
Property managers also warn that if major work is planned for an older building, such as replacing a roof, owners may have to pay a special levy to top up their building’s reserve fund to cover the new charges.
It is not just owners who will feel the impact of the harmonized sales tax. Renters will have to pay the tax on repair and maintenance changes to their rental property. For anyone who buys a property after July 1, closing costs such as legal fees, real estate commissions, home inspections and the costs of movers will also increase because of the HST.
If you are thinking of buying, if you buy now, you can avoid that increase.
Martin K. I. Rumack is a Toronto based Barrister and Solicitor and is a regular contributor to the Muddy York Blog. Contact Information: 202 – 2 St. Clair Avenue East, Toronto, Ontario, M4T 2T5, Tel: (416) 961-3441 (Ext. 26). Mr. Rumack can be mailed directly at martin@martinrumack.com.
Categories: Condominum Information · Legal Information
Tagged: co-operatives, condominums, Toronto Condo Market
By Evan Sage
Condo refers to a type of ownership not a type of building. A Toronto condo usually takes the form of a high or low rise apartment style building. However, some condos could be in the form of a factory loft or town house.
When you buy a Toronto Condo what are you actually buying?
- The physical unit that has a title to the space.
- A portion of the common elements in the building. This portion is a percentage relative to the size of your unit, the bigger your unit the higher percentage ownership you will have of the common elements. Common elements tend to include: elevators, hallways, the lobby and any other communal spaces i.e. gym, pool.
- The use of exclusive-use common elements. Some of these may include a parking spot, locker, balcony ect. The rights to exclusive use elements come with the unit, so if a parking spot is sold separately from the unit than it is not considered an exclusive use common element.
What are maintenance fees?
These fees are paid to upkeep the building and the common elements. A unit’s maintenance fee is proportionate to the size of the unit as compared to others. The bigger your unit the more you pay. Each month a part of the fees are set aside to build up the reserve fund for any major repairs.
Who is the Condo Corp?
The condo corporation is made up of all owners in a building. As a member of the corporation you have the opportunity to vote for the board of directors. The board handles the business affairs of the corporation.
Is my prospective Condo Corp in a good position?
A status report contains the pertinent information that will tell you if the building is in a good or bad situation. The creation of a status report is a legal requirement in Ontario. The status report outlines the following:
-All units percentage ownership of common elements
-All units rights to exclusive use common elements
-The condo corps rules and regulations
-Any special assessments that outlines planned major repairs
-Recent financial statements and budget
If you are submitting an offer to buy a Toronto condominium, you should include the condition that the purchase is conditional on the review and approval of the status certificate. If the building is not in good standing it should be clear to your lawyer or Toronto real estate agent upon review of the status certificate.
Is a condo a good investment?
As with any real estate, a condo could be a good or bad investment. It all depends on the building and the market. There are some great condo investments in Toronto and there are also some terrible investments. Look to the advice of your Toronto real estate agent as to whether the building you are looking at is a good investment.
Building inspection, should I have one done?
It all depends. Many buyers of new buildings will not bother with an inspection, but you may want to consider having an inspection done on older buildings. An inspection should include the review of the major systems to ensure the necessary repairs are anticipated and planned by the condo corp.
Is condo living right for you?
Condo living is not for everyone. It offers convenience, security, and amenities that would not be available in a home at the same price. First time buyers find condos a good option as it is usually a good amount of space for the price. Baby boomers are also finding condos a great option as they are more convenient and less work to maintain than a home. But in the end any individual may find some condos features that they like and perhaps some that they do not.
Evan Sage is a Sales Representative with Royal LePage R.E.S./Johnston & Daniel Division. Evan is also a regular contributor to the Muddy York Blog. Evan’s web site is located at www.evansage.com.
Categories: Condominum Information
Tagged: central, condominums, Real Estate, toronto, Toronto Condo Market, Toronto Condominiums, Toronto Real Estate Market
By James Metcalfe
In Toronto, one of the primary choices of living is in a condominium. Now in most cases you will end up renting a condo, rather than buying one.
In this day and age it is more practical to buy a condo instead of renting one?
You might be asking yourself, what do I have to back up these claims?
With the high cost of renting a condo, it clearly does not make sense to do so anymore.
As you know (or maybe you didn’t) when you are paying your monthly rent, you are actually paying the landlord’s mortgage. What do you gain at the end of the lease? Nothing.
For the landlord, he/ she will be one step closer to paying off the property completely.
With interest rates at an all time low, it is time to forget about renting and move up into owning.
With incentives for First Time Home Buyers, it is practical to want to buy and own your own Toronto condo. This is the first step to your dream condo.
With renting a condo, your rent will include not only the mortgage, but the maintenance fees as well. You will sign a lease for at least 1 year and at the end of that year you might leave the condo and move on.
What would you have really gained from your stay their?
You walk away with nothing but your personal belongings. Whereas if you moved into a house you have bought, and decided to move you can sell your house for the money you used to buy it. This can hopefully help you move on up into a better home.
With renting a condo, you can be subjected to increases in your rent payments, while if you own the condo your mortgage payments are fixed.
You will not have to worry about pleasing the landlord anymore, seeing as the landlord will be yourself. You can live how you want to, without worrying what anyone might say.
Another point to consider is that when you own the condo, and have to move due to unforeseen reasons, you have the option of renting your condo to help ease the stress of the mortgage payments.
Keeping this in mind, I hope you take your time when deciding whether to own or rent a condo.
James Metcalfe is a Sales Representative with Royal LePage R.E.S/ Johnston & Daniel Division. James is a regular contributor to the Muddy York Toronto Real Estate Blog. Jame’s website is located at www.ourhometoronto.com.
Categories: Condominum Information · General Information
Tagged: Central Toronto Real Estate, Real Estate, Toronto Condominiums, Toronto Real Estate Market
By Martin K. I. Rumack
Condominiums and Co-ownerships are legal structures that define both the exclusive rights and the shared rights of individuals who purchase a unit/percentage interest in buildings created as one of these types of legal entity.
IMPORTANT FEATURES OF CONDOMINIUMS AND CO-OWNERSHIPS FOR THE PURCHASER
CO-OWNERSHIP
- Purchaser acquires ownership of a percentage interest in the Co-ownership Corporation by a Deed.
- Purchaser acquires exclusive right to occupy a specific unit through a registered Co-Ownership Agreement and the provisions of the Co-ownership Agreement.
- Purchaser acquires ownership of a percentage interest in the common areas of the building.
- Purchaser becomes a member of the Co-ownership Corporation which:
- (a) manages the affairs of the building according to the Co-ownership Agreement, the Corporation’s By-laws and/or private Contracts, and the Rules and Regulations; and,
- (b) represents the interest of the Percentage Interest Ow. cte.
- Purchaser can individually finance her/his own unit, using their shares and interest in the unit. A limited number of lending institutions finance these types of purchases of shares and/or grant mortgages on these types of properties.
- Purchaser pays for their percentage share of property taxes as a part of their monthly common expenses. The Co-ownership Building is assessed and taxed as one structure.
- Purchaser is assessed for percentage share (based on the size of unit in comparison to the whole building) of the common expenses.
- No legislation requiring a Capital Reserve Fund, but Co-ownership Agreement may require a Capital Reserve Fund to be established for maintenance of building. No legislation exists requiring or outlining requirements for a Reserve Fund Study. No legislation exists requiring compliance with the recommendations of a Reserve Fund Study.
- Purchaser can participate in management decisions by sitting on the Board of Directors and voting as a member at Annual General Meetings.
- Purchaser is subject to the Co-ownership Agreement, Rules and Regulations, and By-laws and other contractual documentation of the Co-ownership Corporation.
- Purchaser does not need consent of the other co-owners or Co-ownership Corporation to sell, rent or mortgage his/her unit. There is the odd exception.
- Purchase of unit should be subject to receipt of an Estoppel Certificate which identifies any outstanding or pending payments, special assessments, or legal actions, re: the unit or corporation, amongst other items together with all other documents included.
- Co-ownerships may have yearly audited Financial Reports issued to all owners and are managed by a professional Management Company Or self-managed.
CONDOMINIUMS
- Purchaser acquires ownership of an individual unit by a Deed.
- Purchaser acquires ow rei. hip to individual unit by a Deed pursuant
- to provisions of The Condominium Act.
- Purchaser acquires a percentage interest in the common areas of the building.
- Purchaser becomes a member of the Condominium Corporation which:
- (a) manages the affairs of the building according to the Condominium Act, and more particularly the Declaration, the By-laws, and the Rules and Regulations; and,
- (b) represents the interests of the Owners.
- Purchaser can individually finance her/his own unit. Large number of lending institutions finance purchases of condominiums and/or grant loans on these types oft. one ties.
- Purchaser receives an individual property tax bill.
- Purchaser is assessed for percentage share (based on the size of unit in comparison to the whole building) of common expenses.
- Condominium Act requires a reserve monetary fund to be established for maintenance of building. Most comply with the provisions of the Act and generally with the Reserve Fund Study. Study must be updated every 3 years.
- Purchaser can participate in management decisions by sitting on the Board of Directors and voting as a member of the Condominium Corporation at Annual General Meetings.
- Purchaser is subject to the Declaration, Rules and Regulations, and By-laws of the Condominium Corporation.
- Purchaser does not need consent of the other owners or the Condominium Corporation to sell, rent or mortgage his/her unit.
- Purchase of a unit should be subject to receipt of a Status Certificate which identifies any outstanding or pending payments, special assessments, or legal actions, re: the unit or corporation, amongst other items together with all other documents required to be included.
- Condominium Corporations must have yearly audited Financial Reports issued to all owners and are almost always managed by a professional Management Company.
Martin K. I. Rumack is a Toronto based Barrister and Solicitor and is a regular contributor to the Muddy York Blog. Contact Information: 202 – 2 St. Clair Avenue East, Toronto, Ontario, M4T 2T5, Tel: (416) 961-3441 (Ext. 26)
Categories: Condominum Information · Legal Information
Tagged: Real Estate, Toronto Condo Market, Toronto Condominiums, Toronto Real Estate Legal
By Martin K. I. Rumack
Condominiums and Co-operatives are legal structures that define both the exclusive rights and the shared rights of individuals who purchase a unit/percentage interest in buildings created as one of these types of legal entity.
IMPORTANT FEATURES OF CONDOMINIUMS AND CO-OPERATIVES FOR THE PURCHASER
CO-OPERATIVE (No Shared Liability)
- Co-operative Corporation is the only registered owner of property (registered on title); purchaser does not own unit
- Purchaser has long term, exclusive use of individual unit through a I A-ase, or Occupancy Agreement, not a Deed.
- Purchaser acquires shares in the Co-operative Corporation and is a shareholder in the Corporation.
- Purchaser becomes a member of the Co-operative Corporation which:
- (a)owns and manages the affairs of the building on behalf of the Shareholders according to the Co-operative/ Shareholder/ Occupancy Agreement, the Corporation’s By-laws, and/or private contracts, and the Rules and Regulations;
- (b)grants exclusive occupation right; to shareholders of a specific unit; and,
- (c)represents the interests of the Shareholders.
- Purchaser can finance the unit, using their shares and leasehold interest in the unit, only if there is no prohibition on pledging shares as security. Only a few lending institutions finance these types of purchases of shares and/or grant loans on these types of properties.
- Purchaser is assessed for a percentage share (based on the size of unit in comparison to the whole building) of common expenses.
- Purchaser pays for their percentage share of property taxes as a part of their monthly common expenses. The Co-operative Building is assessed and taxed as one structure.
- No legislation requiring a Capital Reserve Fund to be established for maintenance of building. Most Co-operative Corporations do have a Capital Reserve Fund for maintenance of building. No legislation exists requiring or outlining requirements for a Reserve Fund Study. No legislation exists requiring compliance with the recommendations of a Reserve Fund Study.
- Purchaser can participate in management decisions by sitting on the Board of Directors and voting as a Shareholder of the Co-operative Corporation at the General Annual Meetings.
- Purchaser is subject to the Co-operative/Shareholder/ Occupancy Agreements, Rules and Regulations, and By-laws of the Co-operative Corporation and other contractual documentation.
- Purchaser needs consent of the Board of Directors of the Co¬operative Coition/ton to sell shares, assign Lease for unit and to rent unit, which is not unreasonably withheld. There is the odd exception. Additionally, consent is required to pledge shares as security.
- Purchase of a unit should be subject to receipt of an Estoppel Certificate which identifies any outstanding or pending payments, assessments, or legal actions, re-. the unit or Corporation together with all other documents which are included.
- Co-operative Corporations may have yearly audited Financial Reports issued to all shareholders and are self-managed or managed by a professional Management Company or self-managed.
CONDOMINIUMS
- Purchaser acquires ownership of an individual unit by a Deed.
- Purchaser acquires ow rei. hip to individual unit by a Deed pursuant
- to provisions of The Condominium Act.
- Purchaser acquires a percentage interest in the common areas of the building.
- Purchaser becomes a member of the Condominium Corporation which:
- (a)manages the affairs of the building according to the Condominium Act, and more particularly the Declaration, the By-laws, and the Rules and Regulations; and,
- (b)represents the interests of the Owners.
- Purchaser can individually finance her/his own unit. Large number of lending institutions finance purchases of condominiums and/or grant loans on these types oft. one ties.
- Purchaser receives an individual property tax bill.
- Purchaser is assessed for percentage share (based on the size of unit in comparison to the whole building) of common expenses.
- Condominium Act requires a reserve monetary fund to be established for maintenance of building. Most comply with the provisions of the Act and generally with the Reserve Fund Study. Study must be updated every 3 years.
- Purchaser can participate in management decisions by sitting on the Board of Directors and voting as a member of the Condominium Corporation at Annual General Meetings.
- Purchaser is subject to the Declaration, Rules and Regulations, and By-laws of the Condominium Corporation.
- Purchaser does not need consent of the other owners or the Condominium Corporation to sell, rent or mortgage his/her unit.
- Purchase of a unit should be subject to receipt of a Status Certificate which identifies any outstanding or pending payments, special assessments, or legal actions, re: the unit or corporation, amongst other items together with all other documents required to be included.
- Condominium Corporations must have yearly audited Financial Reports issued to all owners and are almost always managed by a professional Management Company.
Martin K. I. Rumack is a Toronto based Barrister and Solicitor and is a regular contributor to the Muddy York Blog. Contact Information: 202 – 2 St. Clair Avenue East, Toronto, Ontario, M4T 2T5, Tel: (416) 961-3441 (Ext. 26)
Categories: Condominum Information · Legal Information
Tagged: condominums, Real Estate, Toronto Condominiums, Toronto Real Estate Market
By Roslyn Avery
This is a question often asked by our Buyers. When one buys into an existing condominium building one discovers the complete picture of this building since it has been in place for some time. The maintenance fees, any special assessments, the performance of the Property Management in running the building and certainly an overall picture of the financial stability of the condo corporation- all these factors provide for a well thought-out decision. The Buyer can get a feel for the building and its location; and also can physically appreciate the actual size of the suite. That being the case, the Buyer knows exactly what is being purchased. You know that expression “What you see is what you get.”
When buying a brand new condominium you often buy from floor plans. That being the case, it is often difficult to visualize the space that the final product will offer. It is important to be aware that these floor plans can be subject to change and you must accept that. In addition, when you move into your unit some deficiencies may not be addressed until a later date. Therefore, you must expect not to have a fully finished suite.
When buying new be aware that your occupancy date can be changed and the wait to take possession may extend for a longer period of time. Delays make your moving plans very tenuous and this can be rather frustrating as time goes on.
If you are unsure in deciding on “resale” or “new” do take your time to weigh and measure exactly what you think will work for you.
Roslyn Avery is a Sales Representative with Royal LePage R.E.S./JOHNSTON & DANIEL DIVISION. Roslyn is a regular contributor to the Muddy York Blog. Roslyn’s web site is located at www.condotoronto.net.
Categories: Condominum Information
Tagged: Central Toronto Real Estate, toronto, Toronto Condo Market, Toronto Real Estate Market
