How are Condo Inspections Different from Home Inspections?
Toronto is adoringly referred to as good old ‘T-dot’ and colloquially referred to as condo heaven (due to the city’s urban architecture of using vertical housing in preventing suburban sprawl). Nevertheless, it is North America’s fastest-growing city (faster than New York and Mexico City) and is a hub for both local and multinational organizations.
The city is cosmopolitan and ranks among the most diverse urban areas in the world. When it comes to buying a home, suburban townhouses and condominiums are most preferred among the city’s residents.
When it comes to buying a condo, buyers need to be sure of taking some certain measures when it comes to buying one. They should get it inspected at all costs to make sure nothing goes out of hand. Let us now have a look at why home inspections are important and why condo buyers should do it for condos?
Home inspections – what to know about them?
A home inspection is a core component of due diligence of properties, which each buyer must carry out before buying a home. Regardless of whether it is a row-house, a suburban townhouse, a condo from a listing of condos in Toronto for sale, it is needed.
It is often conducted by an expert who assesses the systems, utilities, parts, rooms, and overall conditions of residential properties. The experts should be unbiased and allow buyers to make the best decision when it comes to buying a home.
However, for prospective condo buyers; this step is ambiguous, and they are often unsure whether they should take this step or not.
Condominium inspections have both benefits and drawbacks. Hence, it is important to understand what the process consists of and what pros and cons should be considered when going through it. Here are what buyers should consider when looking to have their desired unit inspected:
Going for a resale condo in comparison to going for a newly constructed condo
The inspection process will look different in the kind of condo being purchased. Buyers opting for a pre-owned condo will have a professional inspector looking closely at that unit and at its major appliances too.
Common elements are usually not part of the inspection process because the condo board’s management is responsible for checking and maintaining them. Among them are amenities, shared spaces, furnace, heating, and air conditioning among other major systems.
There are of course some exceptions of some condos having their heating and cooling units. These do not count as common elements.
When it comes to purchasing a brand-new condominium unit, its inspection is part of the procedures associated with the purchase process. During the pre-delivery inspection process (PDI), the condo’s builder will guide the buyers and walking them through the newly completed complex. They will show them how it works and how things are doing.
In case of anything missing, incomplete, or malfunctioning, it will be noted on the form the buyers will sign once the inspection is complete. To ensure any issues within the unit are resolved efficiently, the builder must verify that those features existed before the buyer moved in.
The PDI provides buyers an opportunity to record the condition of the new residential unit before buyers move in.
Status certificate review – is it important?
When buyers purchase a resale unit, getting it inspected is optional. It costs between C$300 and C$500. The process helps buyers be at ease about their newly acquired residential unit, but most buyers usually opt-out of it.
What they do instead is that they rely on information present within their status certificates.
The status certificate of the condo will tell buyers everything they need to know about the building’s integrity, financial, and resource health. It also indicates the same about the residential unit to be purchased.
This very certificate also reveals how much finances in reserve the condo board has in the exact amount and how much will they be willing to spend on repairs as well.
Status certificates are comprehensive. Thus, buyers often forgo an inspection once they obtain one. It should be understood obtaining a status certificate costs C$100, and buyers should ensure that their lawyer gets it as part of their due diligence.
Other than that, homebuyers can make reviewing that certificate a condition in their buying agreement.
So, are you going to get your soon to be condo inspected?
Whenever you think of deciding whether or not, you should have your resale condo inspected; you might want to consider your circumstances. If buyers are in the hopes of making a quick buy, they might want to get a status certificate reviewed instead of being overlooked.
The same goes if buyers are in a buying situation where competition is intense because, in such situations, sellers tend to prefer straightforward offers.
If the condo buyers are going to purchase has its cooling and heating systems, then it is best to get it inspected. They will be responsible for maintaining these units as inspection helps them get an idea of what condition they are in.
For buyers to purchase the condo of their dreams, they need to have the right kind of information, ranging from inspections & negotiations to closing and other final touches. Each step can be made easy with the help of expert guidance.
For buyers to be successful in their condo hunt, they should work with an agent who has a full understanding of the whole process and of the local market from all angles.
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