What is involved in buying into a Jointly Owned Property?
Regardless if the property is under construction or it is a completed property, every potential purchaser has the right to know the following information about the Owners Association:
- The ongoing costs associated with purchasing the property, which includes how much money (service charges) that must be paid for the upkeep, maintenance and management of the common areas, including arrears.
- Assets and liabilities of the Owners Association.
- Details of any expenses incurred or anticipated to be incurred by the Owners Association.
- The obligations, rights and responsibilities of owners in Jointly Owned Properties, including the approved use of the property. Thus if it is a residential building, for example, the consumer needs to be made fully aware they cannot operate a home business from the premises.
- The disclosure statement must be attached to a contract if purchasing a property situated in a Jointly Owned Property.
- The buyer should search the records of the Owners Association to identify any irregularities, matters of litigation or potential that the Owners Association may be involved in, any notices served upon the Owners Association and reports on the financial matters of the Owners Association including balances of the General and Reserve Funds.
- The buyer must advise the Owners Association of their contact details.
- Obtain the community rules of the Jointly Owned Property in force.
- Current insurance policies.