01 | Low Condo Fees Aren’t Always a Good Thing
Condo fees are often one of the first numbers buyers compare.
For example:
Condo A: $250/month
Condo B: $450/month
At first glance, Condo A may seem like the better deal.
But the question I’m more interested in is:
Are the condo fees sufficient for what the building actually needs?
Condo fees contribute to the building’s operating and common expenses, such as insurance, cleaning, management, maintenance of common areas and contributions to the contingency fund.
If fees have been kept too low for years, owners may enjoy lower monthly expenses today—but when the roof, exterior, garage or another major component requires work, there may not be enough money available.
So rather than simply asking:
“Are the condo fees expensive?”
I prefer to ask:
“Are the condo fees reasonable, and is the building adequately preparing for future expenses?”
02 | How Much Is in the Contingency Fund? The Number Alone Doesn't Tell You Much
The contingency fund (fonds de prévoyance) is essentially money set aside for major future repairs and replacements.
Suppose you see:
Contingency Fund: $300,000
Is that a lot?
Maybe. Maybe not.
A 20-unit building has very different needs from a 200-unit building with elevators, underground parking and other amenities.
Instead of looking only at the balance, I want to understand:
What major work is expected? How much could it cost? Is the existing fund adequate?
Those questions tell us much more than simply comparing the fund balances of two buildings.
03 | Special Assessments: None Today Doesn't Mean None Tomorrow
When major work is required and the condominium doesn't have enough funds available, owners may be asked to make an additional contribution—a special assessment.
That could mean several thousand dollars per unit, and potentially much more for a major project.
When reviewing a condo, I therefore look at:
Have there been special assessments in the past?
Is one currently being collected?
Are major projects already being discussed?
Simply asking:
“Is there a special assessment right now?”
isn't enough.
There may be none today and one several months from now.
To understand that risk, you need to look at the building's maintenance needs, finances and upcoming plans.
04 | Meeting Minutes: What Has the Building Been Talking About?
Condo meeting minutes (procès-verbaux) are among the documents I pay close attention to.
Some issues may not be obvious from the listing but may have been discussed by the co-owners for months—or even years.
For example:
- Water infiltration in the building or garage
- Exterior, roof or window repairs
- Elevator work
- Insurance issues
- Condo fee increases
- Special assessments
- Complaints or disputes among co-owners
- Upcoming major projects
When I read the minutes, I'm not only looking for:
“Does this building have problems?”
I'm also asking:
How long has the issue existed? How has management responded? Has there been proper follow-up?
Buildings need maintenance.
How a problem is handled can sometimes tell you more than the existence of the problem itself.
05 | Financial Statements: Does the Building Have Enough Money?
I also review the condominium's financial statements.
You don't need to become an accountant, but there are some basic questions worth asking:
What are the building's revenues and expenses?
Is it operating at a deficit?
Are the reserves adequate?
Have condo fees been increasing significantly?
Are there unusual major expenses?
I'm not looking for a building with “perfect” finances.
I want to understand whether its financial position makes sense in relation to the expenses and work it may need to take on.
06 | Declaration of Co-ownership: Know the Rules Before You Buy
Owning your condo doesn't necessarily mean you can do whatever you want with it.
The Declaration of Co-ownership and building regulations can contain rules concerning:
Rentals — Are there restrictions?
Short-term rentals / Airbnb — Are they permitted?
Pets — Are there restrictions on number, size or type?
Renovations — Which projects require approval?
BBQs — Are they permitted on balconies?
Parking and lockers — What rules apply to their use?
This becomes particularly important if you already have a specific plan for the property, such as renting it out in the future.
It's better to understand the restrictions before buying than discover afterward that your intended use isn't permitted.
07 | Parking & Lockers: If They're in the Listing, I Still Verify Them
A listing might say:
1 Parking + 1 Locker
I still verify it.
Parking spaces and lockers can have different legal designations. They may be private portions, common portions for restricted use, or subject to other arrangements depending on the condominium.
And sometimes, documents don't agree with one another.
I once handled a transaction where the deed indicated that a locker was included, but the condominium's records said otherwise.
After further verification, we discovered that the issue originated from an error in a previous deed and dealt with it during the transaction.
→ Related story: The Locker That Didn't Exist
08 | The Building Has Insurance — You Still Need Your Own Condo Insurance
The syndicate of co-ownership carries insurance for the building, but as an owner, you'll still need your own condo insurance.
When reviewing a property, I also pay attention to the building's insurance information:
Have there been significant claims?
How high are the deductibles?
Have insurance costs increased substantially?
Insurance issues can ultimately affect both the condominium's finances and the costs borne by individual owners.
09 | A Newer Condo Doesn't Mean There's Nothing to Investigate
With an older building, buyers naturally start thinking about the roof, windows, garage, exterior, plumbing and other components that may eventually require work.
But newer doesn't automatically mean problem-free.
Some relatively new condo buildings have experienced water infiltration, construction defects or other issues requiring significant follow-up.
That's why I don't make the simple assumption that:
Newer = fewer problems
Older = more problems
With a newer condo, I still look for signs of water infiltration or construction issues, how they were addressed, and whether they appear in the meeting minutes or other condominium documents.
With an older building, I pay closer attention to the history of major repairs, upcoming projects and whether sufficient funds have been set aside.
Age is one piece of information. The actual condition and management of the building matter more.
Considering Buying a Condo in Montreal?
As your buyer's broker, I can guide you through the process—from property visits and price and document analysis to preparing an offer, inspection, due diligence and ultimately completing the transaction.
Have questions about buying a condo? Feel free to get in touch.