Read the Fine Print on Condo Rules Before You Buy

When you live in a condominium, you own your unit but the rest of the common areas are subject to rules. A couple I worked with a few years ago, who were looking at a midtown loft condo, were shocked to find out that the building rules required that their street facing windows have only a certain type and colour choice of window coverings. The unit loft windows were very large and the rules had these stipulations so that, from the outside, there would be consistency in how the windows looked. That may not be a big deal to you but this couple was a little unnerved by it! Being new to the idea of owning a condo, they had no idea of the range of rules that could be imposed on them, despite the fact that they would own their unit. Before you sign on the dotted line for your condo purchase, make sure you read the fine print and know what you’re getting into.

What is a condo?

When I say condo, you probably think high rise building with apartment style dwellings inside. In fact, ‘condominium’ doesn’t refer to a style of home so much as a legal definition of ownership. You can have condo townhomes, low rise buildings, row houses, duplexes, or triplexes. When you buy a condo, you own the unit itself. So if you purchase a condo apartment, you own the four walls and what’s inside them. You also own a share of the common assets, which includes hallways, elevators, party rooms, swimming pools and so on. The boundaries of what you own will be stipulated by the condo corporation documents, so that you are clear on what is your responsibility and what isn’t. In addition to your mortgage and property taxes, you’ll pay maintenance fees. These vary from property to property, depending on the level of common amenities available and services provided, but they are fees levied for the maintenance of the property as a whole. Every condo corporation will have rules and bylaws and as a private organization, they have a fair amount of control as to what those rules might be. But more on that later! How does a condo board work? Every condo has a board, made up of unit owners, which governs the property and ensures, like a regular corporation, that the rules are being adhered to and the maintenance fees are being spent appropriately with a bidding process in place for work being done on shared elements. Since by being a condo owner, you are a member of the corporation, you need to be aware of the board’s activities. Rules and bylaws – buyer beware! Before you buy a condo, you need to acquaint yourself with both the bylaws and the rules. The bylaws are how the condo corporation runs: what the board can do, how they are elected, how maintenance fees are managed and how rules are made. Rules are more about living in the condo, and in particular, the shared spaces. These vary tremendously from property to property though they must be ‘reasonable’. This is a standard that varies though and the rules can encompass things like:

• Pets in units;
• Number of residents in a unit;
• Smoking in units / shared spaces;
• Permitted noise levels;
• Use of outdoor spaces (like balconies);
• Types of vehicles permitted in the owned parking spots;
• When or how you can use the amenities, such as the pool or party room;
• Permitted alterations to units;

Why is it important to understand all of these rules before you buy? Consider the following example, from NOW Toronto: Despite paying for the party room in his building through maintenance fees, when Christian Buer went to book the space for a small gathering for his birthday, he found out about a few additional costs: “he was informed he would have to fork over $25 per hour to hire a security guard, leave a $500 deposit and pay a non-refundable $100 administrative fee.” (Source) “While all residents contribute to common areas like party rooms through monthly fees, those who specifically want to use the shared spaces are asked to bear the financial burden. These added costs not only offset the price of repairs that might be required after a raucous gathering, but act as a deterrent to wild parties. However, many argue that these restrictions are prohibitive and dissuade residents from using a service they already pay for.” As condo units get smaller, the interest owners will have in using these shared spaces increases, but condo boards are getting wise to this and implementing more and more rules to ensure that these spaces are protected. Other rules that have caused a fuss in the past? Some condos have limited the hours during which children of unit owners can use the pool, for example, so if you are banking on using the pool as a great way to keep the kids entertained, make sure you know what the rules are! Another twist has been the legalization of cannabis, and whether people can use it in their units. The condos at OneEleven Condos, in the King West area, sent the owners notices prior to the legalization date that stipulated new rules: “Among them: no smoking or growing pot inside units and common areas, including on balconies and patios, and no deliveries of pot to the building. Residents with valid medical grounds are exempt from the rule only if they provide evidence from an Ontario doctor that smoking cannabis is necessary to treat a condition. Even then, the board can request additional evidence or demand that a resident reconfirm their requirement at any time.” (Source) Whether this kind of rule meets the test of being reasonable or not remains to be seen, but it’s clear that condo boards are walking a fine line between preserving the common spaces and a slippery slope of invading the privacy of the unit dwellers. “In a multi-dwelling unit, your air isn’t your own…”  Before you sign to buy a condo, make sure you have a handle on the existing rules and the bylaws that instruct the board on how they can create, implement and enforce new rules. This could make all the difference on your enjoyment of your new home!