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A condominium is an excellent way to get into the real estate market with a modest investment.  It is a unique form of ownership that combines the shared use of common elements and the exclusive use of the residence.  As an owner, you have both rights and responsibilities.  You have the right to use the shared areas along with the other owners.  You have the obligation to pay your fair share of the cost of maintaining those areas, such as snow removal, landscaping and lighting.  This is done by way of a monthly fee, which is paid to the condominium corporation of which you are a shareholder.  The corporation conducts its’ business through a board of directors which is elected by all the owners at annual meetings, just like any other corporation.  You are encouraged to attend the meetings and to be as active in the condominium as your time allows.  The board makes decisions about how the condominium should spend its resources to maintain the entire project and to ensure that it remains a nice place to live.  The board usually hires a property management company to deal with the day to day aspects of running the corporation while retaining the major decision making power.

Once you have entered into an Agreement of Purchase and Sale you have 10 days to have the agreement reviewed by a lawyer.  I do not charge separately for this review as I think it is part of the work to be done for a purchaser.  Once the deal if “firm”, that is, all the conditions like financing has been met, I will begin to work on the file.

A new condominium has a unique closing procedure that the sales representative will discuss with you.  It is effectively done in two parts.  First, when the residence is ready for occupancy, you will have an interim occupancy closing.  At this time you will do your pre-delivery inspection with a representative of the builder, sign an agreement that sets out the terms of your possession of the property and pay “rent” in an amount which should approximate your mortgage payments, taxes and common expenses.  This is done because the residence is ready before the builder can register the condominium documents, which will take place a few months later.  When that is complete, the final closing will take place.  This is when you actually receive title to the unit and your mortgage is registered.

At the time of the final closing, the Land Transfer Tax must be paid.  On a purchase of $200,000.00 the Land Transfer Tax is $1,725.00.  The formula for purchases up to $250,000.00 is 1% of the sale price less $275.00.  First time buyers are entitled to a reduction in the land transfer tax of up to $2,000.00 per purchase.

 As a result of numerous requests from my clients, I have a fixed price for purchasers of new condominiums, which includes all fees, disbursements, registration costs, a title insurance policy and HST.  Your total legal cost would be as follows:

                                                            Interim closing - $299.00 + HST
                                                            Final closing -   $1,199.00 + HST

If you have any existing home to sell in order to purchase, you will incur additional legal fees of  $799.00 plus HST.