Blog · 3 min read
Buying a Condo: Common Areas and the Reserve Fund to Check
When you buy a condo, you also buy a share of the roof, windows, parking garage and the building's finances. It's often these common elements, not the unit itself, that hold the biggest surprises.
Why the building matters as much as the unit
In a condominium, the building's major components belong to all co-owners: roof, façades, foundations, parking garage, mechanical systems, often windows and balconies too. Their upkeep and replacement are paid through common fees and the reserve fund.
If the fund is insufficient when a big expense arrives, the syndicate must levy a special assessment. For a window replacement or a garage rehabilitation, each co-owner's share can amount to thousands or even tens of thousands of dollars.
That's why a tastefully renovated unit in a building at the end of its cycle can turn out far costlier than a more modest unit in a well-managed building.
Documents to request before waiving conditions
Since the condominium reform launched by Bill 16 in 2019, syndicates must keep a maintenance log and set their reserve fund based on a study by a professional. These documents are your best tools for anticipating the coming years' expenses.
Also ask for the minutes of the last two or three years' meetings, the financial statements, the current budget, the declaration of co-ownership and building bylaws, as well as the document describing the syndicate's condition that it can provide to the seller. Allow time to read them.
If the seller or syndicate is slow to provide these documents, don't waive your conditions blindly. Your broker can request an extension or add a condition tied to receiving them.
- Maintenance log
- Reserve fund study
- Recent meeting minutes
- Financial statements and budget
- Declaration of co-ownership and bylaws
Warning signs in the documents
In the minutes, look for recurring topics: repeated leaks, garage problems, disputes with the builder, work postponed year after year, conflicts between co-owners. A topic that comes back at every meeting without being resolved is rarely a good sign.
In the finances, compare the reserve fund with the work planned in the study. A fund well below the coming years' needs signals higher fees or a special assessment. Also check whether special assessments have already been voted and who will pay them, seller or buyer.
A building with no reserve fund study, or a very old one, also calls for caution: its real needs may be poorly understood.
What the inspector can see in common areas
A condo inspection focuses on your unit, but the inspector also looks at common areas they can access. The underground garage is particularly revealing: efflorescence, cracks, salt marks, exposed rebar or concrete repairs say a lot about the structure's condition and maintenance.
Hallways, the mechanical room, the roof when accessible, façades and balconies complete the picture. The inspector doesn't produce a full building study, but spots the clues that deserve a question to the syndicate before you commit.
Their observations and the syndicate's documents complement each other: if the inspector sees leaks in the garage and the minutes never mention them, that's a question to ask.
Ask whether you can see the roof or the mechanical room if they're locked. Access is sometimes possible with the building manager's cooperation, and even a short look can confirm or dispel a doubt raised by the documents. If access is refused, note it and weigh the missing information in your decision.
The unit itself: points not to overlook
In the unit, attention goes to windows and patio doors, caulking, bathroom and kitchen ventilation, the water heater, floors and traces of water damage, especially from a neighbour. The balcony and its membrane are also examined, even though they're often limited-use common areas.
Check the water heater's age too: in a building, a water heater leak can damage several units, and some syndicates or insurers require replacement after a certain number of years.
Finally, read the building bylaws with your lifestyle in mind: pets, renting, renovations, permitted flooring. Bylaws that forbid what you plan to do are an avoidable bad surprise.
Also look at the unit's position in the building. A top-floor unit is more exposed to roof leaks, a ground-floor unit to garage humidity and noise, a corner unit to cold walls and window condensation. None of these is a deal-breaker, but each suggests where the inspector should look first.
