0$ condo fees?

[iamshazii]

Hi, went to visit this project: https://www.royallepage.ca/en/property/quebec/montreal-nord-montreal/10855-av-des-laurentides/12082718/mls23596542/

Comes from this promoter: https://maisonnordouest.com/projets-residentiels/cottages-maisons-montreal/

The agent said they are built as condos, but there are no condo fees...not sure what or how to see this if it's a good thing or not, can anyone help me ask the proper questions or give me insights on how to assess if this is a problem or not? the only thing the agent said is that in our home insurance we need to add in something for "collective" or "co-propriete" insurance...not sure what that is

(I'm a newb as you can maybe guess) any help is appreciated

Thanks

 

[Né entre les rapides]

Il y a 3 heures, iamshazii a dit :

Hi, went to visit this project: https://www.royallepage.ca/en/property/quebec/montreal-nord-montreal/10855-av-des-laurentides/12082718/mls23596542/

Comes from this promoter: https://maisonnordouest.com/projets-residentiels/cottages-maisons-montreal/

The agent said they are built as condos, but there are no condo fees...not sure what or how to see this if it's a good thing or not, can anyone help me ask the proper questions or give me insights on how to assess if this is a problem or not? the only thing the agent said is that in our home insurance we need to add in something for "collective" or "co-propriete" insurance...not sure what that is

(I'm a newb as you can maybe guess) any help is appreciated

Thanks

 

 Let us start with the basics: a condominium is not a particular type of building.  It is a building (or a complex of buildings) containing individually owned apartments or even houses.

Now  in an attempt to answer your questions, let me try something.  From time to time, you may have viewed signs advertizing "Condos à louer" in a new residential development.  To me, it really means "Appartements à louer";  it appears that some promoters believe that "condo" is more sexy or more prestigious than " appartement" or "logement".  

Let me also try this:  you wrote that "the agent said they are built as condos".  What does the word "as" mean?  --It could, in his mind, mean (or meant to imply, which can be slightly misleading) that the building is being built with (presumably) higher quality standards than for "mere" apartments for rents.  Alternatively, it could mean that the building had been originally planned as a condominium, where units are sold individually as "condos", but that the promoter had changed his plans subsequently.

Ultimately, the question is: is it a condo or not?  -- If it is, it means you will have to sign a purchase agreement, get your financing approved, and bring in at least the minimum cash required.   When the sales agent told you that "there are no condo fees", he probably meant that the promoter would assume those fees for a limited period of time, for example one year.  This can be an attractive proposition if you are temporarily cash short but expect to become able to afford additional fees starting next year.  The purchase price paid may be a little higher than otherwise, but the impact on your cash flow for year one would be minor.  As for condo fees, which the owner (you) will have to pay (except perhaps for a limited period of time as per your example), they can vary greatly, depending on 1) the extent of common services provided (eg. pool, exercise rooms, etc), 2) the expected maintenance costs of the common areas in the future;  a new quality building would normally require less maintenance  than an old structure, or (as we are witnessing too frequently) one that has been built poorly and/or with cheap materials.

You also had a question about the need (requirement) to "add something for collective insurance": if that is the case, it has to be a condo.

If it is not a condo but really an apartment, you simply sign a lease.  Yoy may be able to "claim" that you live in a "condo", but would would not be the owner and would not carry the associated responsabilities. 

Good luck but be careful!😂

[iamshazii]

Hi, thanks for the detailed rundown! really appreciate it, it is infact a "condo divise", i am looking to purchase and not rent

the "as" condos meant that the promoter identified the "zonage" (not sure if i'm using the right term) as condo to the city of Montreal (for example it is not a bugalow or town house nor a duplex/triplex/x_plex), so to the city's perspective, these are 6 condos (if you look on google maps, there are 3 on this side and 3 on the back)

The insurance thing i remember now, he said "responsabilité civile" to be added

he said the only "common" areas are the backyard "access" to each other since if there is an emergency we are able to pass through the backyard of the other condos to get out, so we have to ensure to have a door that doesn't restrict access to pass through each others properties

Otherwise since there are no common areas (like an entry way, elevator, gym, pool, etc...) there are no condo fees

So, i want to be cautious and arm myself with knowledge as much as possible to understand is that really the case or do i have to be careful and consider "hidden" costs down the road that would ultimately end up being condo fees that all 6 of the units will need to forsee

Hope that makes sense

5 hours ago, Né entre les rapides said:

 Let us start with the basics: a condominium is not a particular type of building.  It is a building (or a complex of buildings) containing individually owned apartments or even houses.

Now  in an attempt to answer your questions, let me try something.  From time to time, you may have viewed signs advertizing "Condos à louer" in a new residential development.  To me, it really means "Appartements à louer";  it appears that some promoters believe that "condo" is more sexy or more prestigious than " appartement" or "logement".  

Let me also try this:  you wrote that "the agent said they are built as condos".  What does the word "as" mean?  --It could, in his mind, mean (or meant to imply, which can be slightly misleading) that the building is being built with (presumably) higher quality standards than for "mere" apartments for rents.  Alternatively, it could mean that the building had been originally planned as a condominium, where units are sold individually as "condos", but that the promoter had changed his plans subsequently.

Ultimately, the question is: is it a condo or not?  -- If it is, it means you will have to sign a purchase agreement, get your financing approved, and bring in at least the minimum cash required.   When the sales agent told you that "there are no condo fees", he probably meant that the promoter would assume those fees for a limited period of time, for example one year.  This can be an attractive proposition if you are temporarily cash short but expect to become able to afford additional fees starting next year.  The purchase price paid may be a little higher than otherwise, but the impact on your cash flow for year one would be minor.  As for condo fees, which the owner (you) will have to pay (except perhaps for a limited period of time as per your example), they can vary greatly, depending on 1) the extent of common services provided (eg. pool, exercise rooms, etc), 2) the expected maintenance costs of the common areas in the future;  a new quality building would normally require less maintenance  than an old structure, or (as we are witnessing too frequently) one that has been built poorly and/or with cheap materials.

You also had a question about the need (requirement) to "add something for collective insurance": if that is the case, it has to be a condo.

If it is not a condo but really an apartment, you simply sign a lease.  Yoy may be able to "claim" that you live in a "condo", but would would not be the owner and would not carry the associated responsabilities. 

Good luck but be careful!😂

Hi, thanks for the detailed rundown! really appreciate it, it is infact a "condo divise", i am looking to purchase and not rent

the "as" condos meant that the promoter identified the "zonage" (not sure if i'm using the right term) as condo to the city of Montreal (for example it is not a bugalow or town house nor a duplex/triplex/x_plex), so to the city's perspective, these are 6 condos (if you look on google maps, there are 3 on this side and 3 on the back)

The insurance thing i remember now, he said "responsabilité civile" to be added

he said the only "common" areas are the backyard "access" to each other since if there is an emergency we are able to pass through the backyard of the other condos to get out, so we have to ensure to have a door that doesn't restrict access to pass through each others properties

Otherwise since there are no common areas (like an entry way, elevator, gym, pool, etc...) there are no condo fees

So, i want to be cautious and arm myself with knowledge as much as possible to understand is that really the case or do i have to be careful and consider "hidden" costs down the road that would ultimately end up being condo fees that all 6 of the units will need to forsee

Hope that makes sense

[Miska]

These are townhouses (maison de ville) it is written on the web page.

We also can call them maison jumelée en rangée. It is very common that the house or houses in the center have an only access to the back yard thru the house.

[Né entre les rapides]

Il y a 2 heures, Miska a dit :

These are townhouses (maison de ville) it is written on the web page.

We also can call them maison jumelée en rangée. It is very common that the house or houses in the center have an only access to the back yard thru the house.

Oui, j'ai déjà possédé une maison de ce type (de belles dimensions quand même: 28x30x2=1680 pi.ca.).  La seule différence était que nous avions une ruelle privée à l'arrière (dont nous assumions conjointement les coûts d'entretien et de déneigement), qui donnait accès à nos stationnements et qui nous permettait d'entrer/sortir de la maison par l'arrière sans passer par les cours des voisins.  Tous les éléments extérieurs (toiture, revêtements, fenêtres) de chaque maison étaient sous la responsabilité du propriétaire respectif.  In English, this is called a freehold or full title property.  Note that a physically similar housing complex can also be organized as a condominium.

(this message is also for the eyes of  @iamshazii)

[iamshazii]

6 hours ago, Né entre les rapides said:

Oui, j'ai déjà possédé une maison de ce type (de belles dimensions quand même: 28x30x2=1680 pi.ca.).  La seule différence était que nous avions une ruelle privée à l'arrière (dont nous assumions conjointement les coûts d'entretien et de déneigement), qui donnait accès à nos stationnements et qui nous permettait d'entrer/sortir de la maison par l'arrière sans passer par les cours des voisins.  Tous les éléments extérieurs (toiture, revêtements, fenêtres) de chaque maison étaient sous la responsabilité du propriétaire respectif.  In English, this is called a freehold or full title property.  Note that a physically similar housing complex can also be organized as a condominium.

(this message is also for the eyes of  @iamshazii)

Great! Merci pour cette information! grandement apprécié!! Ça fait du bien d'apprendre des nouveaux termes

This forum is amazing, thank you all for your answers and input!

[WestAust]

Le 2020-09-14 à 08:34, iamshazii a dit :

 

The insurance thing i remember now, he said "responsabilité civile" to be added

he said the only "common" areas are the backyard "access" to each other since if there is an emergency we are able to pass through the backyard of the other condos to get out, so we have to ensure to have a door that doesn't restrict access to pass through each others properties

Otherwise since there are no common areas (like an entry way, elevator, gym, pool, etc...) there are no condo fees

So, i want to be cautious and arm myself with knowledge as much as possible to understand is that really the case or do i have to be careful and consider "hidden" costs down the road that would ultimately end up being condo fees that all 6 of the units will need to forsee

Hope that makes sense

From my understanding, you are to cover all maintenance costs, this is like buying an individual house, you have to take care of lawn, snow removal, repairs... These are the costs you have to consider.

He mentionned Responsabilité Civile insurance, this is for you to get it through your home insurance, this covers the cases where someone would get hurt on your property among other things, and since you have to allow neighbors access through your backyard in case of emergency, this is quite useful, and not too expensive either. 

For your budget planning, consider this project as if you are buying a detached single family home, and all the costs that goes with that.