A Dexel Creation

frequently asked questions


how do condos / lofts work?

  • Under the Condominium Act, all condos are registered with governing authorities by the Builder and participating consultants. The architect, various engineers, and surveyors submit final plans certifying the building has been constructed to their specifications and the building has been approved for occupancy.
  • Every detail of the building is on record and any future changes need to be submitted to the Provincial government for their records, which may be subject to certain fees. This ensures the building can bee reconstructed exactly in the unfortunate event of disaster.
  • Once the condo/loft is a registered corporation, it is operated by the board of directors made up of residents elected by the condo owners. As an owner you have one vote per unit and are eligible to become a director yourself. Under the direction of the owners, the Board is responsible for managing the building budgets and hiring the maintenance tams and property managers, or, in smaller complexes managing the property themselves.
  • In addition to regular maintenance and long term maintenance budgets managed by the Board, they also manage a contingency fund.

buying a condo / loft before the building is built?

There are several reasons pre construction building is advantageous:

  • Pre-construction prices are discounted compared to once the building is complete
  • There is a wider choice of floor plans, and locations within the building
  • You can customize your space by selecting flooring, countertops and various finishes

moving into the condo / loft before registration?

  • You are able to move into your condo/loft before the entire building is full or complete, and before the condo/loft corporation has been registered. At this point the developer will assume the responsibilities and manage the property until a board is elected and the corporation is registered.
  • Monthly “occupancy payments” will be made to the developer, until the condo/loft registration is complete will thee Purchaser price be paid to the developer in exchange for title.

glossary


condominium

  • Refers to multi-unit housing project that includes separate ownership of a loft by a purchaser coupled with co-ownership of common elements by all loft owners.
  • Your home is defined as the actual “loft”, and your boundaries are outlined in the Declaration
  • As specific form of ownership, condominiums are under provincial jurisdiction and in Nova Scotia are regulated by the Condominium Act

declaration

  • The documentation filed with the land registry office that defines architectural, structural and loft plans

condominium corporation

  • A corporation, on behalf of all unit owners, the “owner” of all the common areas and amenities- everything outside your unit. It is incorporated for the purpose of administering the needs and interests of the residential complex. It is guided by a democratically elected Board of Directors consisting of unit owners just like you.

maintenance fees

Based at first on the Developer’s estimate of annual costs to operate the condominium and later set by the Board, you will pay regular monthly fees that may include:

  • Individual domestic water
  • Building and common facility heating
  • Property management, snow removal and ground maintenance
  • Building and common facility maintenance

Contributions to a Reserve Fund for a long-term foreseeable repairs may be include or in addition to the monthly fees, as decided by the Board of Directors.

contingency fund

  • At the time of purchasing, each owner contributes an equivalent of three month’s maintenance fess, into the fund.
  • This money is managed by the Board to address any unplanned changes or improvements to the building

common elements

  • Compromised of various components, which are jointly owned by all owners of a condominium. They vary for each condominium corporation, yet technically they consist of the entire condominium property, excluding the units.
  • Include the land on which the condo is built, corridors, lobbies, elevators, parking garages, roof, recreational areas, hallways, walkways and driveways, boilers, furnaces, air vents, and all other structural and mechanical elements.

closing

  • Every agreement must have a confirmed or tentative occupancy date

interim / escrow closing – pre-construction / unregistered condominiums

  • The first closing date you receive will be a tentative occupancy date, which establishes a target date for occupancy of the unit.

An interim closing date refers to the date by which the purchaser may take possession of the new home. However the title of the new home cannot be transferred to the individual until the condo residence is registered.

final closing – registered condominiums

  • A final closing date is issued to the purchaser then the condo is registered
  • The purchase is completed on this date and the purchaser takes possession/title of property
  • Owner becomes shareholder in the condominium complex

occupancy payments

  • Are basically rent and condo fees paid until registration is complete to help cover the cost of carrying a complete building
  • More details in P&S agreement

registration

  • Can take from a few months to one year to complete
  • Process begins when the builder submits plans and paperwork to the registrar (Department of Business and Consumer Affairs) for their review, at which point they register the condominium residence as a corporation. The Condominium Act stipulates that submissions to the Government must be made only once the occupancy permits have been issued for all units
  • The ministry then reviews the condominium declaration and specifics, and then conducts an on-site inspection.
  • The builder’s lawyer will contact your lawyer to confirm registration and initiate completion of the sale.