You're Under 40 and Own a Condo? Ask This Before It Costs You

Buying a condominium is often the first major real estate purchase for younger buyers in Ontario. The unit looks great. The location is right. The price works. But there are questions worth asking before you sign — questions that don't show up in the listing.

The Reserve Fund

The reserve fund is the corporation's savings account for major repairs and replacements: roofs, elevators, parking structures, windows, mechanical systems. Every corporation is required to have one and to fund it according to a reserve fund study.

Ask: What is the current reserve fund balance? When was the last reserve fund study? Is the fund adequately funded?

An underfunded reserve fund means future special assessments — one-time charges to owners when the fund can't cover a major expense. These can be significant.

The Status Certificate

Before closing on a condo purchase, your lawyer should review the status certificate. This document tells you the financial health of the corporation, any outstanding legal actions, the current budget, and whether there are any known special assessments coming.

Don't skip this step. The status certificate is one of the most important documents in a condo purchase.

The Management Provider

Who manages the building matters. A well-managed building maintains its value, handles maintenance promptly, and communicates clearly with owners. A poorly managed one doesn't.

Ask who the management company is. Look them up. Check their CMRAO licence status. Ask current residents what their experience has been.

The Rules

Every corporation has rules about pets, parking, noise, renovations, short-term rentals, and more. Read them before you buy. If you have a large dog, a corporation that prohibits pets above a certain size is not the right fit.

The Community

You're not just buying a unit — you're joining a community. Talk to residents if you can. Attend an open house. Get a sense of the building's culture.

The Bottom Line

A condominium is a shared investment. The decisions made by the board and management affect your property value, your quality of life, and your costs. Asking the right questions before you buy is the best investment you can make.