Who Takes Care of the Building and Grounds of a Condominium?

Most condominium corporations contract-out

the day-to-day operations of the condominium

to a property management company under

the direction of the condominium’s board

of directors. The cleaning of common

areas, payment of common area utility bills,

operation and maintenance of the central

space and domestic hot water heating and

air-conditioning systems, snow and garbage

removal and the collection of monthly

maintenance fees may fall under the

jurisdiction of the property manager. There

are usually limits to the property manager’s

authority. For example, anything that requires

a major expenditure, or an expenditure not

accounted for in the annual budget, may have

to be approved by the board of directors. The

property manager is not usually responsible

for items or operational problems within

individual units, unless they are related to

the common elements (e.g., heating systems,

roofs, windows, exterior walls).

Some condominiums prefer to deal with

the management of daily maintenance

themselves. These are sometimes referred to

as “self-managed” condominiums. Under this

management style, the board of directors—

and in some cases, volunteers who are residents

or owners—will carry out the day-to-day

tasks of operating the condominium.

It is important when considering the purchase

of a particular condominium,

to ensure you are comfortable with the

management style, whether it is a contract

property manager or self-managed. This may

have implications on both condominium fees

and any obligations you may have towards

the operation and maintenance of the

building.

The condominium unit owner is responsible

for some maintenance duties and the

condominium corporation for others. These

responsibilities vary from condominium to

condominium and should be clearly laid out

in the condominium’s governing documents.

 

Maintenance duties for the unit owner can

 

include:

 

• Internal unit plumbing, appliances,

heating, air-conditioning or electrical

systems that are contained in and serve

only that unit;

• Cleaning window surfaces that

are accessible from inside the unit;

• Cleaning some parts of the common

elements, such as balconies and patios that

are assigned to or exclusive use of, the

unit holder.

 

Maintenance duties for the condominium

 

corporation can include:

 

• Common plumbing, electrical and heating

and air-conditioning systems;

• Roof and wall repairs;

• Windows and doors—repairs and

replacement;

• Grounds cutting, watering;

• Recreational amenities;

• Parking areas;

• Any other part of the property that

is not part of a unit.

Sometimes the responsibility for maintenance

and repair can be shared. For example, a

heating and air-conditioning (HVAC) system

may be part of the common elements, but the

unit owner may be responsible for some tasks,

such as changing filters.

Above material extracted from the Canadian Mortgage and Housing Corporation. For more information please visit www.cmhc.ca

Five Per Cent Down Payment Program

With 5% down payment, all home buyers have access to mortgage insurance allowing them to buy a home, as long as they meet the standards of a 5 year fixed-rate mortgage.

Note:

• Buyers using this Program can consume 32% of their gross monthly household income for payments of principal interest property taxes and heating. Also note that total debt load cannot exceed 40% of monthly income.
• Insurance premiums will be 2.75-2.9% on the mortgage loan and yes, can be added to the mortgage.
• Borrowers will be required to demonstrate an ability to cover closing costs of at least 1.5% of the purchase price.
• If the proceeds are coming as part of a financial gift, this amount must be in the possession of the buyer for at least 15 days.
• Non-owner occupied properties are not eligible for the insurance and are therefore required a 20% down payment.

For more information call CMHC at 1-800-668-2642 or through www.cmhc.ca