Condominiums are a product of statute which simply means that prior to their introduction, real estate meant land and a simple addition of a few words in law which expanded land to include the space above it brought this concept into being.

Condominium living can be a very attractive alternative for people who put a high premium on convenience, security, amenities and a sense of belonging in a community. Condominiums offer more than a housing alternative . . . they offer a lifestyle. When you purchase a condominium you are actually purchasing two separate things. You are, of course purchasing the unit itself but you are also purchasing an ownership interest in the common elements. The common elements are the hallways, lobby, recreational/entertaining amenities, landscaping, driveways, roofs, windows and heating and cooling system along with the elevators and even a guest suite if the development offers one.

Condominiums are governed by Provincial legislation, and the way that they are formed, sold and operated varies throughout the Provinces. However, there are a number similarities across the country which I will share with you.

Typically, a developer must register a document called a "declaration" with the appropriate government agency (e.g. Land Registry Office) before their development can be classified as a condominium.

The declaration describes the to-be condo development in minute detail and may include regulations and/or bylaws that outline the obligations and rights of future owners.

The condominium forms a not-for-profit corporation which is overseen and run by a board of directors. As an owner, you get a vote in the condominium corporation which is set up to manage the common elements.

Monthly condominium fees are paid by all owners to cover the cost of maintaining the common elements. Typically, a percentage of the condo fees go into a "reserve fund" which accrues to offset future repairs and replacement required to maintain the building and elements. As a Buyer, you should understand exactly what you are buying into. If you are purchasing a resale condo, be sure that you get a copy of the "Estopple Certificate" (a document that provides a reasonably complete report on the financial health of the condominium corporation ). If you are purchasing a new condo, be sure to confirm that the maintenance fees do in fact cover all of the expenses of the condominium corporation as in the past some developers padded the maintenance to get the development sold and then a year later the condo fees skyrocketed. Be sure that the new building is covered by a third-party new home warranty.

With a new condo, be sure to check the developers previous developments. I recommend going to a couple and seeing how the construction quality has held up. Try to talk with a couple of owners and ask if there have been any problems.

Many new developments and especially Lofts do not include utilities in their condo fees so be sure to ask. Ask for the proposed budget of the corporation and know if it is realistic for the long term. Go over the regulations and by-laws. Confirm, preferably in writing whether any portion of the development has been designated for rental.

When assessing the rules and regulations be sure to learn rules pertaining to exterior colour schemes, curtain colours, pets, barbecues and specific uses of units. When checking out the developer find out how quickly they have gotten their previous developments registered because in many instances buyers have been left paying occupancy fees for extended time periods (which means that you are actually renting your own unit paying the rental to the developer). Be sure to use a qualified and experienced real estate lawyer that is familiar with the local condo market (not all lawyers are alike). Have your lawyer go through the Agreement of Purchase and Sale before you sign it. If you are pressured at the site to sign then make your offer "Conditional" on your lawyer approving it.

Fortunately, in Ontario you have a Ten Day Cooling Off Period which means that any time during the ten day period following the signing of an Agreement of Purchase and Sale, you can cancel the transaction without penalty. This is called a "cooling off period" and serves as exactly that. Remember, no matter how friendly and attentive a sales representative is, they are the developers or vendors (whichever the case may be) representative and they are obligated under law to represent ONLY the interest of the seller. Make sure that you are given the "Disclosure Statement" upon signing the offer and get it to your lawyer immediately (giving you the full benefit of the cooling off period).