When you hear "condominium," your first image may be of a luxury high-rise in a big city. However, a condominium is not a type of building, but a type of property ownership.

You can buy a condo within almost any type of residential structure. When you do, you purchase a "unit," which consists of all the area within the finished walls of your space.

If you're a first-time home buyer or looking to "downsize" your home, buying a condo may be an attractive option for you. But first consider the advantages, disadvantages and other important issues:

Condos are a popular choice in today's market and offer many advantages not typically found in other types of homes. For example, condos:

• Offer all the benefits of property ownership, including potential return on investment
• May be less expensive than other types of homes
• Are accessible to more buyers in areas (cities, in particular) where property values are high
• Require less time for maintenance
• Usually provide increased security
• Often offer more recreational and social activities and amenities

A condo may also come with the following downsides:

• Lack of privacy
• High noise level
• The corporation's right of entry to your unit if reasonable notice has been given or during emergencies
• If you live in a complex of condo buildings, your fees may be allocated to them all instead of just to the one in which you live

Along with your mortgage and property tax payments, you are also responsible for condominium fees (usually paid monthly), which pay for:

• Maintenance and upkeep of the property
• Amenities such as a pool or health club
• Utilities
• Property management fees
• The condo corporation's insurance policies
• Reserve fund contributions (this is the fund set aside for major repairs or renovations)

You and all the other fee-paying unit owners have access to common areas that may include recreational rooms, entrance ways, hallways, gardens and mechanical/electrical services. This can have its downside-the owners usually vote on proposed changes to the common areas, and you may find yourself on the losing side.

---

Condo Board

The condo owners elect a board of directors to run the condominium. The board sets rules and regulations to help ensure the comfort and safety of all the owners. The board also determines the level of responsibility owners will have for maintenance within their units.

It's important that you review the condo rules and other governing documents before you purchase your unit. Ask yourself if you can live with them. Easygoing rules about parties may seem great-until the unit next door is carousing on a night when you need sleep!

If condo living sounds right for you, the next step is to consider whether to buy a new or resale condo.

Both new and resale condos offer pros and cons that you should consider before making a decision. The table below offers some of the key things you'll want to keep in mind:

Buying a New Condo
Pros	Cons
You have input on how your unit is finished. You might save money by buying early, before prices increase. You have a greater choice of units to choose from. New home warranty protection covers any construction defects.	If the developer has not yet sold a specific number of units and registered the condominium corporation, you may not be able to obtain a mortgage on an unregistered unit. You may move in while noisy construction is still underway. Delays in construction may mean you cannot move in on the original closing date.
Buying a Resale Condo
Pros	Cons
You know the layout and room sizes. You have a sense of how your furnishings will fit and look in a unit. You can meet other neighbours and get a good sense of how well the building is maintained. Usually, your closing date is firm.	You won't get a choice of colours and layout-and there may be restrictions on how you can change your unit. You may find outstanding maintenance issues. All the amenities you would like may not be available.

If you're thinking about buying a condo, you can help protect yourself legally and avoid surprises by asking the following questions:

• What does the corporation's insurance cover? What coverage will I need to obtain? (Most times, you must obtain insurance for any losses or liability that occurs within your unit.)
• What are the restrictions regarding occupation of the units (common restrictions include pets, satellite dishes, air conditioning units, etc.)?
• Is the building or complex registered as a condominium corporation? If not, when is registration anticipated?
• How many units are rented vs. owner-occupied? (Rented units may not receive the same level of care.)
• Is parking included in the price? If not, how much extra will it be? How convenient is parking for visitors?
• What is the current balance of the reserve fund?
• What are the short-term and long-term plans for renovations and repairs?
• How much are the maintenance or common fees? What do they cover?
• What changes can I make to the unit? What restrictions must I stay within?
• What are the unit's boundaries?
• What issues are being discussed at condo association meetings? May I review the meeting minutes?
• What are the rules and regulations regarding visitors, common area usage, etc.?