Module 2 Flashcards
Insurance required for condo corps to have
- property insurance (for units due to fire, flooding etc)
2. Liability insurance (coverage for lawsuits against the corp)
Maintenance fee =
approved budget x % of held title /12
Permission to install exclusive use elements will be found on
the status certificate
Bad tenant-to-owner occupancy
25% or higher
must be allocated in the developers 1st year budget and set aside as soon as the condo corp is registered
reserve fund
Reserve funds are for
major repairs, replacement of common eles and other corp assets
reserve fund studies are conducted every
3 years
reserve fund study for new corps are required within
the first year of registration
Contains information on:
- budget
- common expense payable
disclosure of legal action being taken against the corp
- corp address for service, info on directors/officers
status certificate
Approval of agreement
it is necessary for a seller to obtain approval from a condo corp in a condo resale
If a unit owner chooses not to pay their portion of a special assessment fee a
lien will be placed on the unit within 90 days
GDS ratio
(PIT(H) + 50% of condo fees) / net income
Good GDS ratio
lower than 35%
Toal living area identified in the description
includes any exculsive use common ele
anticipated expenditures made from the reserve fund in the current fiscal year can be found in
the status certificate
Issues for buyers of condo which have alterations without approval
- Will have to pay to get it restored
- ineligible for insurance
Condo appraisals must pay attention to the
- competency of the corp/directors
- health of reserve fund
- condition of common eles
Annual general meetings should occur within
6 months after the year-end
Where to check if a condo management provider is licensed
condo management regulatory authority of ON’s public registry
Implementation of a special assessment can be found on
schedule D of the declaration
Condo corps are required to complete an annual audit within
6 months of the fiscal year end
