This week, as promised, I am going to try and explain some more of the documents you will receive, together with and being part of, the Disclosure Statement.
 
What is a Budget Statement? This is a document or series of documents that provide a statement as to the budget for the year after you condominium has been registered. Remember there are generally two closings for a new condo - occupancy and registration. This budget is for the year after the second closing. You will receive some very important information, which will help you to decide if you are going to remain in the deal during the 10 day cooling off period.
 
There will be an operating budget with schedules that allows you to see how the management of the condominium is going to allocate and spend your money. Ask yourself, is the application of funds sensible? Are management salaries in line? Are there other things in the budget that look strange, etc? Next, check the proportionate allocations to see how your monthly assessment stacks up to what you believed it should be.
 
Once you have completed your review if you have questions ask the sales agent to either provide answers or get them for you before you firm up the offer.
 
The other document I want to discuss this week is the Declaration. Why is this important? The Declaration sets out a significant number of the rights, privileges and restrictions that affect the lifestyle of your unit. It will talk about Common Expenses (payment of them, setting up a reserve fund (more later)); Common Elements (using them, restrictions on use and access, modifications and alterations to them, handling pets in common areas); Units (commercial and residential, who, what and how they can be occupied, changes that can and cannot be made, how parking works, how storage units work, and all the rights privileges and restrictions that go along); it deals with Maintenance and Repairs (who is responsible, i.e. you or the condo management, responsibility to each other for damages); Indemnification ( in other words if you messed up you have to protect the condo corp); Insurance (who has to insure what -more next week);and General and Administrative Matters (don't miss these - all kinds of little things like keys, rights of entry, etc).
 
The Declaration is really, really, really important to read. It's too late to say later I didn't see that. Remember if you don't understand make your lawyer explain the things to you.
 
OK, that's all for this week . . . more in the continuing saga next week!!
Perhaps the most difficult part of writing these articles relates not the actual writing, but thinking of a topic to address. So help me!!! Mail, deliver or fax letters to the magazine or to us, use the web site (www.schwarzgillen.com), email (schwarzgillen@sprint.ca) and give us your questions, concerns, critiques and quandaries. I will try to deal with them in print or electronic form. Good luck and happy condo hunting I'll talk to you next issue!!
 

Home | Todays Tips | Articles of Interest | Legal Fees & Services | Credentials