Thinking of buying a Condo?  Do you know if you are you a "condo person"?  Most people who are, know they are.  If you don't know, then you need to educate yourself a bit.  It will help you decide what type of property you should purchase; should you buy a Condominium or should you buy a Freehold property.  There are different types of condos, but the most common are condominium apartments and condominium town houses.

What is a Condominium?  The definition of Condominium from MSN Encarta is: 

an individually owned unit of real estate, especially an apartment or town house, in a building or on land that is owned in common by the owners of the units.

 A Condominium comprises of owner properties and common use areas.  What are common use areas?  Well, the lobby, the gym, the pool, the media lounge, the hallways, any outdoor space (yes, including your private balcony or terrace!), and the party room are all prime examples.  While numerous common areas have been noted here, the actual list will more than likely be much longer and will depend on the offerings of the condominium complex itself.  Owner properites are the Individual units owned by purchasers. The indivdiual units may also share some common walls or cielings.  The main difference between condos and freehold properties is that you do not own a plot of land.  All the land a condominium sits on is part of the common area which is owned by everyone.  When you receive a deed to your condominium, it is for the unit you purchased, not the land the building sits on.

A condominium is a Corporation which is overseen by a property manager and board of directors.  The board of directors is determined by a vote of unit owners and the property manager is a contracted service as chosen by the board of directors.  The property manager collects monthly fees that covers building maintenance.  Maintenance is an area where there are large differences between the two types of ownership. Each month, the condominium owner pays fees that go to the general running, upkeep and maintenance of the corporation.  The monthly fees cover things such as lawn and garden care, snow removal, upkeep of facilities (i.e. gym, pool, sauna, party room, etc.), elevators, access roads, parking garages, exterior window washing, concierge services, gate house services, plumbing, roofing, windows, etc.  Part of the monthly fee is also directed to a reserve fund (kind of a rainy day fund to cover things such as unexpected major repair work).  A condominium must also have rules and regulations and a budget, a copy of which must be forwarded to owners each year.  The board of directors meet monthly and are residents and owners in the condominium complex.   A condominium corporation is required to have an Annual General Meeting (AGM) for its owners.  At the AGM, the board of directors and property manager will review such things as the budget, expenditures, future plans, etc.  The AGM is also a forum for owners to ask about issues that are important to them, but may not be covered in the AGM agenda.

The rules and regulations that govern a condominium complex must be adhered to by all residents and visitors.  One of the most common rule a condominum complex will have is if pets will be allowed or not.  In some cases, condominiums will allow pets, but with some restrictions.  Another common rule a condominium complex will have will be nothing can be adhered to outside windows, or that all window coverings must be uniform in colour.  In any case, if something is listed as a condo rule, its law and there is no way around it, but compliance.  A condominium corporation has the right, in extreme circumstances, to ask an owner to comply with the rules or sell their property and move.

As an owner of a condominium, you are responsible for the upkeep of the interior of your home.  For example, plumbing issues (only those pipes which are accessible, including behind shower walls), heating and air conditioning, interior window washing and general cleaning and maintenance. 

Some condominium corporations will also cover the fees for water, electricity, heating, air conditioning, parking and cable television.  More and more, you will find that condominiums are no longer covering the fees for electricity and water.  The amount of the monthly fee is directly related to the size of your unit. 

The main "plus" of condominium ownership, according to many people, is the fact that when you leave your unit, you lock the door and forget about it.  Security is generally top-notch.  This is a great feature if you travel frequently.

I'm a condo owner and resident, too!  If you have any questions regarding the condominium lifestyle, please contact me.