You’ve decided a low-maintenance condo is the type of new home that best suits your lifestyle and budget. Whether you’ve just started shopping or you’re about to take occupancy, you’ll need to become familiar with some new terms that relate to your rights as an owner, your warranty, and the roles and responsibilities of owners and condo boards.
Here are some important ones to know.
What you’re buying
"Unit"
When you purchase a residential condominium, you are buying a unit in a condominium project. The unit number should be identified in your agreement of purchase and sale and the disclosure statement which accompanies it.
As a condo owner, you’ll want to know what exactly belongs to your unit and is within your control. To determine your unit’s boundaries, refer to the Declaration and Description included in your purchase documents.
"Common elements"
Your condominium will also include common elements, which are shared facilities in the condominium project that every condo owner has access to (e.g., recreational facilities, lobby, elevators, parking garage).
"Exclusive use common elements"
Depending on what kind of condo you’re buying, you may also have access to exclusive use common elements. These may be things like balconies that are only for your use but are actually owned by the condominium corporation and covered by the common elements warranty (see below).
Your warranty coverage
"Unit Warranty"
Your unit warranty covers items within your unit, from walls and floors to cupboards and countertops. This warranty begins when you take occupancy, is provided by the vendor/builder of your project, and lasts for a total of seven years.
As the owner, you’re responsible for submitting any warranty claims for your unit. More information about the warranty claims process can be found on Tarion’s website, and submitting claims can be easily done by using MyHome, Tarion’s online service for homeowners.
"Common Elements Warranty"
The common elements warranty covers the shared areas in the project that are located outside of unit boundaries. Coverage will also include exclusive use common elements. This warranty begins when the condominium project is registered with the municipality, and the condominium corporation is then in charge of managing it and submitting any claims. You can learn more about the common elements warranty on our website.
If there is an issue outside your unit, you should report it to your condominium manager or the board of directors of the condominium corporation so that it may be addressed under the warranty.
How your condo is managed
"Condominium Corporation Board of Directors"
The board is generally made up of unit owners who are elected by the unit owners to manage the corporation’s business affairs, including policies, finances, maintenance and repairs.
"Condominium Manager"
The condominium manager (also known as the property manager) reports to the condo board and manages the day-to-day operations of the condo project. This person may also oversee the timely resolution of any warranty claims for common elements.
"Reserve Fund"
The reserve fund is a special account, separate from the condo corporation’s operating budget, used to pay for common element repairs and replacement.
Knowing what these terms mean will help make your new condo ownership experience a smoother one. And remember, if there’s something you’re not clear about, you can always check out the various resources we have for homeowners in our Learning Hub or contact us.