Winnipegs Real Estate Blog - Bo Kauffmann, REALTOR®Info and Tips for Buyers and Sellers of Winnipeg Real Estate - http://blog.winnipeghomefinder.com

Announcing New Updated List of Required Condo Documents

by Bo Kauffmann - Monday, August 31, 2015

http://blog.winnipeghomefinder.com/condo-documents-list-of-documents-every-condo-buyer-must-receive/

Revised Condo Documents: Since Feb. 2015 every Condo Buyer mustreceive:

Examining the New Condo Documents in Manitoba

Back in 2012, I published an article that listed the condo-documents every seller must provide toa prospective buyer. In those 'simpler times', the list of documents was only 7 items.....oh, howwe long for those good 'ol days.

On Feb. 1st, 2015, the new Condominium Act came into effect, and with it, the list of requiredcondo documents grew. The original 7 are still on that list, as follows:

Documents STILL required (and always had been);

1) Condo Disclosure

THIS is the most important item in the Condo Documents. I've attached a sample DisclosureCertificate below. It will show whether there are any increases in condo fees being planned, anymajor repairs or renovations being considered, and special assessments coming along the way,any law suits or insurance claims pending against the condo. Keeping in mind that as the buyer,you are buying a small percentage of the entire building (or buildings), this is most certainlyinformation you should have.

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The Disclosure Certificate has to be dated WITHIN 90 days of the offer. So for example, if youare making an offer on a condo on April 15th, 2015, the date on the Disclosure can not be morethan 90 days in the past... so that Jan 5th, for example, would not be acceptable.

2) Budget

This is the projected budget for the next year. Estimated costs of any repairs or improvements.

3) Financial Statements (including Auditors Report, if available)

This is usually a couple of pages long and shows where all the money has gone in the past year(or two) So it will show a total amount of money received thru the condo fees (and other sources,such as parking fees, laundry fees in buildings with coin-op laundry), and then shows all theitems that had been purchased and repaired and maintained over the past year or more.

4) By-laws (and Rules) and all Amendments

Funny thing: It seems that someone, wayyyy back, drafted a standard set of by-laws and thenEVERY condo uses these. The original set where obviously drafted for a high-rise condobuilding, and so you will see things like "No Laundry to be hung from the balcony". Whats funnyis when you look at buying a stand alone bungalow condo and see this as part of the by-laws. Forthe most part, fairly standard, but as the condo grows and matures, owners can (and often will)update and add new rules. So looking at this a little closer is a good idea. Difference between"By-laws" and "Rules"? By-laws govern the entire building and property, whereas rules apply tothe 'common areas', such as hallways and parking lots. By-laws require a majority approval of allowners (usually around 75%), but rules can be passed by the current board at any time.

5) Condo Declaration and all Amendments

Fairly standard legal-eze that was drafted at the time when the condo came into 'being'. It tellshow the condo board meetings are to be held, and other legal issues. Fairly standard.

6) Management Agreement

This is the agreement between the condo corp. and the current management company. Theseusually run for between 1 and 5 years. I consider this the least important, because as a singleowner, you would have very little influence over the management company. Plus, if they reallydo a BAD job, the corporation simply does not renew the contract, which is why I personallythink this is the least important part of the Condo Documents.

7) Building Insurance Certificate

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This shows that the building insurance has been paid and is current. In cases of bungalow andside-by-side condos, the insurance may NOT be for the building itself, but should cover liabilityinsurance for common areas, such as parking lots and walkways.

New Documents required as of Feb 1st, 2015

8) Statement about the cooling-off period

Standard form which explains the buyers right to cancel the purchase within 7 days of receivingall the documents

9) Statement of buyers right to cancel because of material change

This is a form which explains that, if there is a 'material change' in the documents between thetime of purchase, and the time of possession, the buyer has another 7 days to cancel the purchase.

Example: Buyer purchases the condo in April, when condo fees are $325.00 per month.Possession date is to be July 15th. In June, the condo decides to increase condo fees to$360 per month. Now the buyer MUST be notified of this change, and he MAY havejustification to cancel the purchase. (Whether or not he actually IS justified, may be upto a court to decide. I know.....don't shoot the messenger, I dont like this part either)

10) Disclosure Statement by Owner

Different than the Disclosure Statement in Item #1 above, this one is made by the condo sellers,and 6 pages deep.

11) Proposed by-law changes

A statement of any proposed changes to the by-laws or rules that have not been put into effectyet.

12) Notice of Future Meetings to be held

Any notice for a meeting to be held after possession date. The new buyer must receive a copy ofthese notices!

13) Reserve Fund Study

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This was actually always required, IF a reserve fund study had been done. Since these studies arenow legally required (within the next 3 years) ALL condos must have these studies and thereports have to be handed to the buyer.

14) Excerpts of the Condo Plan

This is a set of drawings which show the exact location of the condo unit itself.

These are the bulk of the forms, although there are a couple of additional forms which may berequired in certain, special situations. The new act also added a few twists and turns, making itessentially more onerous to sell your condo.

I read a great reminder on a Jewelers business card a little while back : "If you don't knowjewelry, KNOW your Jeweler". And so I would like to say : "If you don't know Real Estate(especially Condos),.. KNOW your REALTOR®"

If you're thinking of buying (or selling) a condo (or a house), please call me anytime for a freeconsultation. Any REALTOR® can send you listings via e-mail, but my buyers are among thebest prepared in the market. Let's go condo-shopping.

Conversely if you're thinking of SELLING your condo, please call me. As a condo owner, I DOunderstand them a fair deal better than the average agent, and this can come in handy when yourprospective buyers have questions.

#condominium #realestate #buyahome

Bo Kauffmann of Remax Performance Realty is a top producing, 10-year veteranreal estate agent in Winnipeg. He specializes in representing home and condo buyers and sellers,and a proud supporter of D'arcy's Animal Rescue Centre. You can find his main listing website at WinnipegHomeFinder.com. You can follow him on Twitter, see his Facebook Page and circlehim on Google+ or LinkedIn.

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Bo Kauffmann, REALTOR® After retiring from the Winnipeg Police Service, Bo joined Remax Performance Realty

and quickly became on of Winnipeg’s top producing REALTORS®. You can find him on Facebook, follow him on Twitter and Google+, and connect with him on LinkedIn.

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