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There are differences between these two forms of ownership with the most obvious being the shared aspect of the Condominium. Most people are familiar with the ownership of a home so we will mostly touch on the Condo lifestyle. A variety of terms apply only to Condominiums and you can find many of them here.
Some of the differences between the two styles of ownership can be seen below.
| Single Family Home |
Condominium |
All property owned by individual
Responsible for maintenance costs of entire property
No money automatically set aside for maintenance costs
Freedom to make changes to the property
All decisions made by the individual
Responsible for all sudden repair costs |
Shared ownership of Common Property
Maintenance costs of Common Areas are shared
Reserve Fund to deal with future expenses
Bylaws to abide by (creates uniformity & can enhance value)
Complex run by a board of directors
Financial Security in numbers (Unexpected costs can be shared) |
It about the lifestyle...
The biggest difference about living in a Condominium is the lifestyle. If you are not wanting the responsibility of having to look after the maintenance of the building, landscaping and the day to day operations of the property then Condo ownership is probably for you. You will have more time and freedom to do other things than having to worry about the exterior of the building. There is the comfort in numbers as well. If an unexpected costly repair arises the cost can be shared amongst many individual unit owners.
Many condominiums are located in areas closer to work and not out in suburbs. With proximity to both work and play you can spend less time commuting to and from work - more time for the things that you enjoy. This freedom does come at a cost and it is in the form of Condominium Contributions.
Condominium Contributions
Most commonly referred to as the Condo Fee this is the monthly fee that is collected by the Condominium Corporation (or Management Company on behalf of the Corporation) to cover the ongoing operating costs involved in a Condo Complex.
Often buyers only look at the actual fee to determine if they want to purchase in a building without looking at what the fee actual covers. A super low Condo fee often means that very little is looked after by the Corporation and more costs might be the responsibility of the individual owner. Items such as future window replacement can be costly when not covered by the reserve fund. It is important to look at the fees and especially the financial statements of a Condominium before deciding if it is a good buy or not. A Condominium Document review is a recommended condition of purchase and there are many companies who specialize in Review. You can find out more about Condo Document Review.
Rules to Live with
Probably the biggest feature that you will find different over owning a home is in the bylaws. The bylaws are not meant be overbearing and controlling of the owners but rather to assist in maintaining value and order within a shared ownership system.
The bylaws are put into place immediately upon the formation of a Condominium Corporation (as per the Condominium Property Act). They are often left unchanged from the original form dictated by legislation but often other things will be added as time passes to better reflect the overall ownership interests.
It is very important to review the condominium bylaws especially when you might be looking to do renovations, own a pet or run a small business from your home. Having a Certified Condominium Specialist at your side will help to make the process a lot less daunting and save you some headaches in the end. If you have any questions or would like to sit down and discuss your needs please contact us today.
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