Posted by: Karim Ali
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Condos vs Associations
Buying a townhome or apartment in Ottawa? Don’t get caught off guard by association and condo fees! In this text, we’ll break down everything you need to know to make an informed decision.
Est. reading time: 6 mins
Understanding Association and Condo Fees in Ottawa
When purchasing a home in Ottawa, you may encounter association fees or condo fees. Understanding these fees is crucial for managing your budget and knowing what you’re getting into. Let’s dive into the differences and what they mean for you as a homeowner.
Condo Fees Explained
Condo fees are regular payments made by owners of condominium units. These fees cover the costs of maintaining common areas, building insurance, amenities, and sometimes utilities. Here’s what you need to know:
What They Normally Cover:
- Exterior Maintenance: This often includes repairs to the roof, exterior walls, and windows. Have a look at the condo documents to confirm this is indeed the case for your particular condo corporation, as some will have varying rules & coverage.
- Landscaping and Snow Removal: Ensures the grounds are well-kept and accessible year-round.
- Building Insurance: Covers common areas and the building structure.
- Amenities: Pools, gyms, and party rooms are often included.
- Utilities: Often, water is covered. Sometimes, hydro, gas and heat are also covered.
Ownership Stake:
- In a condo arrangement, you own your individual unit and share ownership of common areas (e.g., the building enveloppe and its land) with other unit owners. The condo corporation manages these common areas, funded by condo fees collected from all unit owners.
Association Fees (Parcel of Tied Land - POTL)
Association fees, often found in freehold townhome developments, are payments made for maintaining private roads and shared amenities. These fees are paid to a condo association, which manages these areas.
What They Cover:
- Road Maintenance and Repairs: Ensures private roads are kept in good condition.
- Snow Removal for Private Roads: Keeps roads accessible during winter.
- Landscaping of Shared Areas: Maintains the beauty and usability of communal spaces.
- Maintenance of Shared Amenities: Parks, playgrounds, and other facilities.
Ownership Stake:
- In a condo association arrangement, you own your home and the land it sits on but share responsibility for maintaining private roads and communal areas. The condo association, funded by association fees, oversees these tasks.
Key Differences Between Condo and Association Fees
Type of Ownership:
- Condo Townhomes: You own the interior of the unit and share ownership of the building and common areas.
- Freehold Townhomes with POTL: You own the entire unit and the land it sits on but share responsibility for private roads and communal areas.
Fee Structure:
- Condo Fees: Typically higher due to broader coverage, including building maintenance, amenities, and sometimes utilities.
- Association Fees: Generally lower, covering only the maintenance of private roads and shared outdoor areas.
Control and Responsibility:
- Condo Owners: Less individual control over the exterior of the property; more communal decision-making through the condo board.
- Freehold Owners with POTL: More control over your property but must adhere to condo association guidelines and share responsibility for communal spaces.
Making an Informed Decision
When deciding between a condo townhome and a freehold townhome with association fees, consider the following:
- Budget: Factor in the monthly fees and what they cover.
- Lifestyle: Determine how much maintenance responsibility you want to take on personally.
- Community: Consider the level of involvement you want in the communal decision-making process.
Bonus tips
1
Check the Reserve Fund
Before buying, check the condo corporation or association’s reserve fund. A healthy reserve fund indicates good management and fewer chances of surprise fees for major repairs.
2
Review the Condo Association’s Rules
Make sure you’re comfortable with the rules and regulations of the condo association to avoid conflicts later.
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