Share this post
With a hot seller’s market for Alberta, we are seeing more and more owners taking advantage by selling their condos. Most people are familiar with moving however, selling a condo is not like selling a house! Condos have their own unique selling points and challenges. To ensure a smooth process, it’s best to educate yourself on the ins and outs before putting a condominium on the market.
A study done by the Canadian Association of Accredited Mortgage Professionals estimates the average Canadian will own 4.5 to 5.5 homes in their lifetime.Canadian Association of Accredited Mortgage Professionals
Table of Contents
What To You Do Before Listing A Condo?
- Review your Condo ByLaws – If you own your condo, it means you are part of a condo association and will have some responsibilities when selling your home. There may be unique rules when it comes to selling, such as when and how you can show the property or regulations and restrictions on whom can purchase the home. These can include age-restricted communities or policies that do not allow pets. Reviewing your condo-specific bylaws is a great place to start and can give you a head start on requirements specific to your condo association.
- Home Renovations – If you plan on making any renovations to your home before selling, it is important to ensure you follow your condo association guidelines. Many associations require a renovation request to be completed and approved by the Board of Directors.
- Hire a Real Estate Professional – When selling, you have the option of engaging a real estate agent or selling on your own. Whether you’re planning to sell your condo with or without the assistance of a real estate professional, always consult a real estate lawyer to ensure all of your legal obligations are met. Hiring an agent with experience selling condos can be highly beneficial since a condo is unique in comparison to a typical single-family home and does require its own due diligence.
- Make sure your account is in good standing – If you owe condo fees, fines, or any special assessments, this could complicate selling your home as it might be possible that a lien/caveat has been registered against your unit. It’s best to pay off any arrears before selling to avoid these complications.
What To Do When Listing Your Condo?
- Disclose your association to potential buyers – Buyers need to know about your condo association so they can make informed decisions when buying. Some may request documents to know the community rules and regulations. These documents can include:
- Recent Reserve fund – A well-funded reserve fund can be an important selling feature that shows buyers that the condominium association is in good financial standing.
- Operating Budget & Financial Statements– These documents show what the condo association is spending the owner’s condo fees on (amenities, contractors, management fees, etc.)
- Board Meeting Minutes – This will give buyers an insight into whether there are upcoming major repairs in the forecast.
- Bylaws – This is an important document for potential buyers to see what the rules and regulations of the property are, regarding pets parking and amenity use.
- Estoppel Certificate – This is a signed statement from the condo association that provides the current condo fees for the unit, the payment schedule of the fees, and whether any contributions are unpaid.
- Information/Disclosure Statement – This document includes any lawsuits involving the association (including the amount claimed against the association), any judgments or orders that the association is liable for, how much funds are in the reserve fund, the amount of the monthly condo fees for the unit and if there are any structural deficiencies or loans.
Any client of Magnum York can obtain these condo-specific documents and more through condopapers.com.
- Get your documents ready – Ensure your realtor has all the necessary documents ready before closing day. Missing information could delay the selling process.
As a seller, you are legally obligated to disclose any defects you are aware of that the buyer could not identify through a visual inspectin. These defects may be related to the common property or the unit itself. It is also a requirement to disclose any upcoming special assessments or levies that are not listed on documents requested by the buyer.
Failing to disclose any of the information above could result in the purchaser suing you in the future.Condo Law for Albertans
What To Do When Your Condo has Sold?
- Ensure your property management company knows – This is important so that the property management company is aware that you will no longer own the unit and that there is a new owner moving in.
- Book your move-out – It is important to reach out to the property management company to find out what the move-out policy is for the property. If your building has an elevator, an elevator booking might be required, so making arrangements in advance is advisable. It is important to make sure you don’t break any guidelines or safety regulations when moving out, especially if parking a moving truck.
- Cancel your monthly condo fee payments – If you are set up on pre-authorized payments (PAP), it is important to contact your property management company to cancel these automatic withdrawals. This will guarantee that you are not charged condo fees after you move out of the condo. If you are moving out mid-month and have already paid your condo fees for the month, these are typically pro-rated and you will receive the portion back through the closing process from the buyer’s lawyer to yours.
- Keys and parking tags – Before the closing period is wrapped up, your condo keys, building and mailbox keys, fobs, and parking tags need to be given to your lawyer or real estate agent so they can be transferred to the new owners. Fobs are typically recorded under each owner, so it is important for the safety of the property that these records are transferred to the new owners and are not taken with you when you move.
The rules of a condo association can play a role in who you sell to and how the property is marketed. Seeking professional advice will ensure nothing is missed and that the process is smooth and as stress-free as possible.
- Hub Associa Online – https://hub.associaonline.com/blog/moving-out-of-your-hoa-heres-what-you-need-to-do
- Condo Law Alberta – https://www.condolawalberta.ca/owners/renting-selling/selling-your-condo/
- Webinar Recap: The Legal Facts of Condominium Life with Roberto Noce from Miller Thomson LLP
- 5 Things You Should Know About Your Condo Fees
- Webinar Recap: Alberta Condo Law 101 For Condo Boards With Roberto Noce
Follow Magnum York on Social Media!