I just bought a condo, now what?
New home owners have a lot on their plate from finishing up any last-minute legal paperwork to furnishing the new home with furniture and personal belongings.
Where do you start and what should you do first? In this chapter of condos.ca's First-Time Buyer's Guide, we’ll cover a question our Condo Pros hear a lot, “I just bought a condo, now what?”
The first thing to do after closing a condo deal
Meet with your real estate agent and your real estate lawyer, and double check that everything was completed, approved, and finalized. It is all too common that a real estate deal closes as “sold conditional,” which means the sale is done only after certain conditions are met. Your real estate agent and lawyer are your lines of defense here and your forwards!
What conditions should you look out for?
Mortgage approval - if you don’t get approved
• Don’t panic, just adjust your financing and try another lender
• Borrow from family and friends to get a larger down payment
• Don't waive your financing condition and back out of the deal
Status certificate review - if there are red flags
• There are lawsuits on the status certificate.
a) What is the level of seriousness
b) Has money for the issues been set aside or already paid
c) Is the condo Corp the one suing or are they being sued
• There is a special assessment.
a) The seller should be responsible to cover the special assessment
b) If they are not willing, do not waive the condition
c) Ask for a reduction in price to cover
• Maintenance fees are going up.
a) What is the reason?
b) Maintenance fees will generally go up with inflation, typically 2-3% a year. They may not go up every year so there can be big jumps every 5 years.
The new condo owner checklist:
Book your movers:
There are many good moving companies in Toronto, such as Two Men and a Truck.
Go for purchasers visits:
Ask your real estate agent to arrange a time for you to visit the condo or house to measure for furniture, pick out paint, or get quotes for any work you want to have done.
Update your mailing address:
Don’t forget to update your mailing address for any bills or subscriptions you have. Also, ask the previous owners for a forwarding address in case any mail arrives for them.
Register with the Property Management:
This allows you to be on record as the owner should you need a parcel to be delivered and added to the building directory so you can allow guests in remotely. Depending on what property management company operates in your building, you might get a welcome package to follow after the purchase.
Make sure everything is in order:
Do a once over as you get your keys to ensure all conditions of the purchase agreement have been fulfilled, as well as all fixtures in the unit are in working order. Sometimes a resale condo deal closes, and then the dishwasher doesn't work. Shit happens. Should anything not be in order, reach out to your lawyer and real estate agent as soon as possible to work on the next steps.
Buy home insurance:
The condo building will likely include building insurance in your maintenance fee, but you want to purchase personal home insurance to protect your belongings and yourself.
Learn about the condo board:
As an owner, you now have a stake in the management of the condominium, and there’s no better time to get involved and meet the other owners. Speak to the front desk about condo board meeting times.
Get to know the building’s common areas:
Does your condo have an outdoor swimming pool? How do you access it? Can you take a glass of wine out there? Take a day to tour the building and learn about everything it offers. After all, you’re paying for it.
Set a new budget:
Take account of all your fixed expenses pertaining to the condo including mortgage, maintenance fees, taxes and utilities. It was easy when you had one set payment while renting but now you are your own landlord and all bills come to you so budgeting is super important!
Do the new condo owner dance: Your condo, your style, but see here for suggestions.
Know your rights and responsibilities as a condo owner
You own a condo now, and owning a condo comes with new rights and responsibilities that protect condo owners and regulate how condo corporations are created and managed.
The government of Ontario has three main resources that oversee the rights of condo owners.
• The Condominium Act for your condo owner rights in Ontario
• The Condominium Management Services Act for rules about property management
• The Condominium Authority Tribunal for how to handle disputes in a condo building
Check out Chapter One: What is a Condo to learn the basics about condominium boards and corporations.
Pros and cons of renting out your condo
Pros - Your rental income will help you pay off your mortgage. In some cases, depending on your own living situation at the time, your rental income could bring in profits.
Cons - You have to become a landlord in Ontario, which means making sure your property adheres to certain standards laid out in the Landlord and Tenant Board. You also have to find a qualified tenant, which can be a stressful process.
Enjoy your new condo
Now is the time to enjoy your first home! Congratulate yourself for making a strong winning offer and pop the champagne! Decorate, personalize, take on small renovations if you can, (focusing on the bathroom and kitchen will give you the best value return for your buck). The condo market in Toronto has had steady growth around 5% for the last few years, so hang out, build some equity, and think about what you want to do next.
Similar to the issue of renting versus buying, you’re now in the position to begin thinking about buying versus selling. This is a lifestyle choice, based on how you want to live now and in the future. But there’s no rush. You did it. Congrats!
Welcome to homeownership.
