1. Replacement Reserve Fund - All condo complexes have a fund set aside to be used for repairs to major parts of the common areas of the complex. The fund is built up by each unit owner in the complex contributing a portion of their condo fees each month.
   
   
2. Condo Fees - This is the amount payable by every unit in the complex each month for as long as you own the unit. A portion of that cost goes to pay for the maintenance of the building to keep it operating properly. This is what pays for housekeeping and grounds keeping and washing of the building each year, etc. The other portion goes to the Reserve Fund as mentioned above.
   
   
3. Reserve Fund Study - This is a study of the Replacement Reserve Fund. The study examines the fund and makes a budget for the next 25 years. The condo corporation then knows what it should be budgeting for to keep the proper amount of money in the fund. Recent laws have been passed that require all condominiums to have a study in place by September 1, 2002.
   
   
4. Common Property - This is any area that is not solely owned but instead shared and jointly owned by all owners. This means for example the balconies, the front lobby, the elevator, the parking garage, garbage room, basically any area that is not assigned a unit number. You are wondering why a balcony is concidered common property well it's actually Exclusive Use Common Property. Property that is restricted to the use of a certain owner. For example, storage units, parking stalls, balconies and some units may have a fenced off grassy area.
   
   
5. Annual General Meeting - This is a meeting held once a year for all owners who want to attend. This is a very important meeting and if I were you I would not miss this one. The financial reports and operating reports of the past year are revealed at this time. All owners should be given a copy of these reports each year. If you do not get one you should contact your condo association members and request one. At this meeting the owners hold a vote to vote the new members into the condo association. The owners can also vote to keep the same people on the board if they feel that they are doing a good job of representing their interests. The board members have to agree to stay on for another year. Also discussed at this meeting are any outstanding issues that need to be addressed. You don't have to attend this meeting, if you are away you can still vote via Proxy Vote. This means that you pick one person whom you trust to vote for you.
   
   
6. Annual Budget - This is a very important document. Make sure you get a copy of this as well and keep it with your other condo documents. You will need them when you go to sell your unit. They will be passed onto the new owners. This budget lays out a plan for the corporation for the new year. It shows all the money that will be collected (from contributions, etc.) and also what money will be needed to pay for expenses and the reserve fund contribution.
   
   
7. Special Assessment - Sometimes the condo corporation falls short of money needed to cover all of the complex expenses usually due to an unexpected expense occurring. In this case the board members after careful consideration will put out a call for a special assessment on every owner in the complex. The money collected will be used to cover those expenses. Another example of why a special assessment may be put forward is to help build up the reserve fund in order to keep on target with the reserve fund study. Owners are all expected to pay the required assessment and if they fail to do so the condo corporation can put a lien on their condo unit. The amount of the assessment or otherwise known as the cash call can sometimes be very large and payable at once. Payment schedules are usually set up to soften the blow but not always.
   
   
8. Parking - When looking to purchase a condominium be sure to inquire about whether the parking stall is separate title or if you must pay a rental charge for the use or if it is included with your unit but not on a separate title. If it is not on a separate title you are not allowed to sell it when you sell your unit. Being on separate title means that you own the particular stall and will also be required to pay taxes on the stall every year. Make sure that you ask if you are getting a spot under ground or if it is covered or unprotected.
   
   
9. Estoppel Certificate - Is a very important document that is supplied to the lawyer handling the purchasing or selling transaction of a unit. This document is issued by the condo corporation to prove that the particular unit being sold or purchased has paid all contributions required up to date. This includes past due amounts for special assessments.
   

If you did not find the information you need please feel free to contact Deborah by phone 403-667-SELL(7355) or by email

Request a Report
on your Neighborhood

[ Listings ] [ Home ] Privacy Policy