Planning to buy a condo or townhome? Wondering if there are any additional or hidden costs during purchase? In this episode, we discuss whether there are any hidden fees or costs when buying a condo and explore if utilities are part of those fees. We also look at what kind of home insurance when buying a condo or townhome.
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Hi everyone. Welcome to another edition of Home buyer's School.
Today I am joined by Karen McDonald, Community manager with Brookfield Residential.
And today, the question we're going to answer is:
What are the hidden fees when buying a condo? So are there any hidden fees?
There could be.
And that really depends on whether you're buying a new or a resale home.
To a large degree, in a new home, no.
You may have to pay for closing [00:01:00] costs.
You would definitely have to do so in a resale home, make sure that you have some funds allocated towards closing costs, legal closing costs to transfer that land title.
Also, in a resale, you may want to take a look at whether there are any special assessments that are [00:01:30] due on that property, anything that is required for that current purchaser to pay prior to moving out, selling out their home.
Do I have to pay utilities in my condo. Is that included in the condo fee?
It really depends on what type of multi-family home you're purchasing.
If you're buying something like an apartment style where there is a central heating, then [00:02:00] yes.
You will have some sort of utilities included in your condo fees, and you should be able to determine that really quickly by asking the question.
A lot of the times when it's a redefined town home, you would just be paying for the exterior. You'd be metered for your own water.
You'd have your own furnace, heating source. So, you would pay for utilities separate from condo fees.
And what kind of insurance do I need for my condo?
Well again, depending on what type of multi-family home.
But in general, the building insurance [00:02:30] would be included, so to re-build the home.That would be included.
You would generally get your contents and liability insurance.
So in general, it's rather inexpensive to do so on a monthly basis. But that would be what I'd say is absolute, contents and liability.
Is that insurance included in the condo fees or is that separate?
Contents and liability is always separate.
What you bring into the home and liability for protecting a corporation against [00:03:00] indemnifies in any harms or losses.
Karl Yeh: And same thing with utilities, kind of separate.
Karen McDonald: Absolutely.
Karl Yeh: Okay. Well thank you very much Karen.
Karen McDonald: Thank you.
Karl Yeh: Thank you very much for joining us, and we'll catch you next time.
So of our other videos that you may be interested in watching related to this topic are:
Let us know if you have additional condo questions or home buying questions that we can answer by submitting them in the comments section below.
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About Karen McDonald:
This is my 12th year with Brookfield Residential. I have been involved in 8 sites now with 7 in multi-family and 1 Single Family. I received my certification as a New Home Sales Professional from PHBIA in 2008.