Buying a Condo in Montreal: What You Need to Know
If you’re thinking about buying a condo in Montreal, you need more than just a great location and a nice view. Understanding condo fees, financial health, and the building’s management structure is just as important as choosing the right floor plan. Understanding Condo Fees Condo fees cover shared expenses for the building, including: Maintenance and repairs – Snow removal, landscaping, cleaning, and general upkeep. Insurance – A portion of your fee goes toward insuring the building’s common areas. Contingency fund contributions – This reserve fund pays for major repairs like roof replacements and window upgrades. Many buyers assume low condo fees are a good thing, but that’s not always the case. If a building’s fees are too low, the contingency fund may not have enough money to cover future repairs. That could lead to expensive special assessments (one-time fees owners must pay when the reserve fund falls short). Key takeaway: A healthy condo should have a well-funded contingency reserve. If fees seem unusually low, it’s a red flag. What to Look for in a Condo Listing When reviewing listings on Centris or other platforms, pay attention to: Monthly condo fees – Divide the annual amount by 12 to get the monthly cost. Square footage – Know what you’re getting for your money. Parking and storage – Check if a spot is included and whether it’s indoors or outdoors. Amenities – Pools, gyms, and rooftop terraces can add value but also increase condo fees. Building age and condition – Older buildings often have higher maintenance costs. If you’re unsure about the financials, ask for additional documents before making an offer. Self-Managed vs. Professionally Managed Buildings Montreal condos are either self-managed by the owners or professionally managed by an external firm. Owners handle finances and maintenance decisions. Often lower condo fees, but that can be misleading. Risk of poor financial planning if owners resist increasing fees. May not have enough money set aside for future repairs. Handled by a property management company. Fees are often higher but more structured. Lower risk of financial mismanagement. More predictable maintenance schedules. Key takeaway: Smaller buildings may seem appealing, but if they are self-managed, their financials must be carefully reviewed. Quebec’s Condo Laws: Bill 16 & Bill 141 Recent legal changes have reshaped condo ownership in Quebec. Requires all condo buildings to undergo professional inspections. These inspections create a “maintenance log” outlining needed repairs. Ensures condo associations properly fund their reserve accounts. Requires professional financial audits every five years. These laws were introduced to prevent situations where condo owners were caught off guard by expensive special assessments. What this means for buyers: Before buying, check whether the building has complied with these laws. If not, future costs could be unpredictable. The Risks of Not Reviewing Condo Documents Buying a condo without reviewing its financials is like buying a car without checking the engine. You might end up with costly surprises. Meeting Minutes (Last 2 Years) Details past issues, ongoing maintenance plans, and financial discussions. Red flag: Frequent mention of urgent repairs with no clear funding plan. Budget & Financial Statements Shows how much money is set aside for future repairs. Red flag: If expenses exceed income, future special assessments are likely. Request for Information from The Syndicate A one-page summary of the building’s financial health. Includes details on legal disputes, pending assessments, and contingency fund balance. Declaration of Co-Ownership Outlines condo rules and regulations. Includes your percentage of ownership, which affects condo fees. Certificate of Location Confirms the legal description and boundaries of the property. Crucial for new buildings to ensure you’re getting what you paid for. Key takeaway: If any of these documents are unavailable, outdated, or missing, it’s a red flag. How to Protect Yourself When Buying a Condo Work with a broker – They’ll help you navigate financial documents and avoid risky buildings. Review financials thoroughly – Make sure the contingency fund is well-funded. Ask about past and future special assessments – Find out if major work is planned. Think long-term – A condo is a long-term investment. Choose a financially stable building Final Thoughts Buying a condo in Montreal requires more than just picking the right unit. The building’s financial health, condo fees, and management structure all play a big role in long-term value. Do your due diligence, review the key documents, and work with a knowledgeable broker to ensure you’re making a smart investmentSelf-Managed (Smaller Buildings, Triplexes, Sixplexes)
Professionally Managed (Larger Buildings, High-Rises)
Bill 16
Bill 141
Documents You Should Review Before Buying