Condo Fees v/s freehold maintainance expense

[Granny]

The only caveat to this is that if you were to save for a rainy day as a home owner for the years you live there and sell then you get to keep your money. The rainy day money for a condo is gone. If you are just switching from condo to condo it all works out in the end but if you switch from condo to house you lose that emergency money.

You make a valid point. I agree with that, However..
There is another way of looking at that. If you are buying a resale condo the seller's agent is legally obliged (at his expense) to submit to you a financial statement for the building within 10 days for your approval. For example, lets say the numbers are not to your liking. The building is not managed in your lawer's / agent/ yourself's reasonable comfort level. The reserve amount that is held is too low. You now have the option of A.Canceling the deal or B. resubmitting a lower offer which is more in line to your new percieved value of that unit( assuming you really want it that bad).
In other order words the 'value' of this condo is partially dictated by the reserve fund held and how well your potential investment is being protected. Its something like buying an existing business. If the business has investment cash on hand it goes with the sale of that business and is part of the value of that business.

 

[dosbox]

With that work ethic

I find it hard to believe you're inclined to go to a gym anywhere

Equating a distaste of manual labour with lack of work ethic seems a bit of a stretch.

It's entirely possible that shovelling snow yourself is a bad financial choice if you have a well paid job. And free time to pursue more interesting activities than cursing at the city for ploughing snow into your driveway *again* is priceless.

 

[Yossi Kaplan MBA]

Who pays for the Status Certificate?

You make a valid point. I agree with that, However..
There is another way of looking at that. If you are buying a resale condo the seller's agent is legally obliged (at his expense) to submit to you a financial statement for the building within 10 days for your approval.

There is no rule of who pays for the SC, it could be whomever orders it or their "agent" - not the Realtor, but their representative (lawyer, neighbour, friend, grandmother).

In all of my past deals, the sellers have ordered and paid for it - they live in the building, they go to management and pay (usually) $100 (max amount allowed) and get the document within 10 days or less.

Here is what a Status Certificate is and what you can expect to find in it:

http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_98c19_e.htm#BK91


Status certificate
76. (1) The corporation shall give to each person who so requests a status certificate with respect to a unit in the corporation, in the prescribed form, that specifies the date on which it was made and that contains,
(a) a statement of the common expenses for the unit and the default, if any, in payment of the common expenses;
(b) a statement of the increase, if any, in the common expenses for the unit that the board has declared since the date of the budget of the corporation for the current fiscal year and the reason for the increase;
(c) a statement of the assessments, if any, that the board has levied against the unit since the date of the budget of the corporation for the current fiscal year to increase the contribution to the reserve fund and the reason for the assessments;
(d) a statement of the address for service of the corporation;
(e) a statement of the names and address for service of the directors and officers of the corporation;
(f) a copy of the current declaration, by-laws and rules;
(g) a copy of all applications made under section 109 to amend the declaration for which the court has not made an order;
(h) a statement of all outstanding judgments against the corporation and the status of all legal actions to which the corporation is a party;
(i) a copy of the budget of the corporation for the current fiscal year, the last annual audited financial statements and the auditor’s report on the statements;
(j) a list of all current agreements mentioned in section 111, 112 or 113 and all current agreements between the corporation and another corporation or between the corporation and the owner of the unit;
(k) a statement that the person requesting the status certificate has the rights described in subsections (7) and (8) with respect to the agreements mentioned in clause (j);
(l) a statement whether the parties have complied with all current agreements mentioned in clause 98 (1) (b) with respect to the unit;
(m) a statement with respect to,
(i) the most recent reserve fund study and updates to it,
(ii) the amount in the reserve fund no earlier than at the end of a month within 90 days of the date of the status certificate, and
(iii) current plans, if any, to increase the reserve fund under subsection 94 (8);
(n) a statement of those additions, alterations or improvements to the common elements, those changes in the assets of the corporation and those changes in a service of the corporation that are substantial and that the board has proposed but has not implemented, together with a statement of the purpose of them;
(o) a statement of the number of units for which the corporation has received notice under section 83 that the unit was leased during the fiscal year preceding the date of the status certificate;
(p) a certificate or memorandum of insurance for each of the current insurance policies;
(q) a statement of the amounts, if any, that this Act requires be added to the common expenses payable for the unit;
(r) a statement whether the Superior Court of Justice has made an order appointing an inspector under section 130 or an administrator under section 131;
(s) all other material that the regulations made under this Act require. 1998, c. 19, s. 76 (1); 2000, c. 26, Sched. B, s. 7 (5).
Fee for certificate
(2) The corporation may charge the prescribed fee for providing the status certificate. 1998, c. 19, s. 76 (2).
Time for giving certificate
(3) The corporation shall give the status certificate within 10 days after receiving a request for it and payment of the fee charged by the corporation for it. 1998, c. 19, s. 76 (3).
Omission of information
(4) If a status certificate that a corporation has given under subsection (1) omits material information that it is required to contain, it shall be deemed to include a statement that there is no such information. 1998, c. 19, s. 76 (4).
Default in giving certificate
(5) A corporation that does not give a status certificate within the required time shall be deemed to have given a certificate on the day immediately after the required time has expired stating that,
(a) there has been no default in the payment of common expenses for the unit;
(b) the board has not declared any increase in the common expenses for the unit since the date of the budget of the corporation for the current fiscal year; and
(c) the board has not levied any assessments against the unit since the date of the budget of the corporation for the current fiscal year to increase the contribution to the reserve fund. 1998, c. 19, s. 76 (5).
Effect of certificate
(6) The status certificate binds the corporation, as of the date it is given or deemed to have been given, with respect to the information that it contains or is deemed to contain, as against a purchaser or mortgagee of a unit who relies on the certificate. 1998, c. 19, s. 76 (6).
Examination of agreements
(7) Upon receiving a written request and reasonable notice, the corporation shall permit a person who has requested a status certificate and paid the fee charged by the corporation for the certificate, or an agent of the person duly authorized in writing, to examine the agreements mentioned in clause (1) (k) at a reasonable time and at a reasonable location. 1998, c. 19, s. 76 (7).
Copies of agreements
(8) The corporation shall, within a reasonable time, provide copies of the agreements to a person examining them, if the person so requests and pays a reasonable fee to compensate the corporation for the labour and copying charges. 1998, c. 19, s. 76 (8).
Information on corporation
77. On the request of any person, the corporation shall, without fee, provide the names and address for service of the directors and officers of the corporation, the person responsible for the management of the property of the corporation and the person to whom the corporation has delegated the responsibility for providing status certificates. 1998, c. 19, s. 77.