Knowledge centre
Litigation is not automatically fatal, but its subject, potential cost, insurance response and lender view matter. Have the lawyer explain the disclosed proceeding and ask the lender to review the property early. Some litigation can delay or restrict financing even when the borrower qualifies.
Read the declaration, bylaws and rules before committing. A practice that appears common in the building may still be restricted. Confirm the exact pet, leasing, short-term rental, flooring, balcony, smoking, parking and renovation provisions that matter to your intended use.
Verify the legal interest, unit numbers, permitted use and transfer restrictions in the agreement, status certificate, declaration and title. A numbered parking spot shown during a viewing is not enough. It may be a separately titled unit, an exclusive-use common element or an assigned space that can change.
It may be able to charge certain repair costs or an insurance deductible back to the unit owner, depending on the Condominium Act, declaration, bylaws, rules and facts. Owners should not assume the tenant’s insurance or deposit automatically protects them.
The corporation’s policy and the unit owner’s policy cover different interests. Confirm the standard-unit definition, corporation deductibles, betterments, contents, liability, loss assessment and additional living expenses before closing. A large corporation deductible can become a serious owner exposure after damage.
Qualify and budget using more than today’s fee. Review what the fee covers, recent increases, the new budget, reserve contributions and expected projects. Condo fees can rise after purchase, and lenders include a portion of them in debt-service calculations, so an increase affects both household cash flow and future qualification.
The agreement of purchase and sale, assessment dates, payment schedule and legal adjustments determine who pays. Do not assume the seller pays because the assessment was announced before closing or that the buyer pays because instalments continue afterward. Put the allocation in writing and have the lawyers confirm it.
The reserve-fund balance alone cannot tell you whether a condominium is financially healthy. Read it beside the reserve-fund study, funding plan, building age, planned repairs and recent budgets. A large fund can still be inadequate for major work, while a smaller fund may be reasonable for a newer corporation with a sound plan.
Treat the pre-delivery inspection as a documented inspection of the home’s condition and completeness, not a ceremonial key visit. Attend carefully, record damaged, missing, incomplete or non-operating items on the PDI form, keep photos, and separately track the warranty submission deadlines that begin after possession.
A builder delay can outlast the rate hold, appraisal and income documents. Even if the original approval looked firm, the lender may need a new application, updated credit, employment, bank statements and valuation before advancing funds. Reopen the file early and avoid job, debt or down-payment changes before closing.