Selling a condominium has a few major differences. It is extremely important that you understand these differences. To often in the past we've had major issues caused by a sellers lack of condo knowledge.
Condominiums involve joint ownership of the majority (if not all) of the area & improvements outside your door & involve an extremely detailed ownership system. Condominium corporations are extremely important to everyone involved in the ownership or purchase of a condominium & need to be fully understood & disclosed.
Selling a condo requires the seller to provide the buyers with a complete condominium document package. When a buyer makes an offer on a condominium the unique condition they will put on this offer is that the final purchase will be subject to their review of the these documents. This package of documents should be ready & complete at the sellers expense prior to dealing with an offer (otherwise it can become very costly & stressful getting these documents quickly).
The documents required to sell a condominium...
-a copy of the registered condominium plan
-a copy of the current condominium bylaws
-a copy of the most recent financial statements of the corporation, including the most recent year-end & month-end statements
-a copy of the current budget of the corporation
-a statement setting out the amount of monthly contribution (condo fee) & the basis on which that amount was determined
-a copy of the most recent minutes of the Annual General Meeting
-a copy of the minutes of the Board of Directors of the corporation for the past 12 months
-a copy of the current insurance certificate
-a copy of any lease or exclusive use agreements with respect to the possession of a portion of the common property, including a parking stall or storage space
-the particulars of or a copy of any subsisting recreational agreement
-the particulars of or a copy of any subsisting management agreement
-the amount of any homeowner association fees
-a statement setting out structural deficiencies that the corporation has knowledge of, at the time of the request, in any of the buildings that are part of the condominium plan
-a statement setting out (1) the amount of the capital replacement reserve fund, (2) a copy of the most recent reserve fund study report, (#) a copy of the most recent reserve fund plan
-the particulars of any post tensioned cables located anywhere on or within the property
-a statement setting out the amount of any contributions due and payable with respect the the unit
-the particulars of any action commenced against the corporation & served on the corporation
-the particulars of any unsatisfied judgement or order of which the corporation is liable
-the particulars of any written demand made on the corporation for any amount in excess of $5,000. that, if not met, may result in an action being brought against the corporation
-If a BARELAND CONDO a current Real Property report will also be required
There are two main types of condominium ownership structures conventual & bareland.
Conventual Condominium Ownership
This is the most common & an owner under this type of ownership most often owns only the space inside the paint of the unit they occupy. All land or improvements on the land within the condo corporation is jointly owned (everything outside the paint on a units walls). In some projects storage or parking outside the unit are titled to an individual owner & in others these items are assigned to the unit for it's exclusive use. In some complexes a parking stall maybe assigned to a unit under one owner & a different one can be assigned on the change of ownership (quite rare).
Bareland Condominium Ownership
This type of ownership is most popular in subdivisions with free standing homes where a condominium corporation was created where owners own not just the home on the land but the individual lot it sits & roads, parks, flowers beds etc are under the joint ownership in a condo corporation. This allows for communities to be constructed with slightly different rules & that common areas will be maintained usually at a much higher level. The wrinkle is that some townhome complexs are owned as a bareland condo as well. So from the street it's impossible to tell which type of condo it is. Your agent MUST find out & ensure all proper documents are available.