There’s a lot of things to consider when buying a resale condo. One these factors is whether a condo community is right for you. That’s why you have to review the condo rules and regulations that govern the development.
These can limit how you get to use your condo and are enforced through fines and penalties. To avoid frustrations, look for these 7 common rules and regulations before buying a condo:
- Rental limitations
- Short-term rental bans
- Pet restrictions
- Flooring types
- Insurance requirements
- Noise limitations
- Construction and renovation restrictions
In this article, we’ll look at these condo rules in detail and where to find them. We’ll also go over the lifestyle impact buying a condo with such rules could have.
A Quick Note On Condo Rules
When you buy a condo, you live under a set of community rules and bylaws. Bylaws get implemented and enforced by a condo corporation. Note that corporations are also called a home owner’s association (HOA) depending where you live.
The condo corporation has some power over how you use your condo. This is to ensure that everyone who lives in the development get to enjoy their property.
What Does This Means When Buying a Resale Condo?
When you’re in the process of buying an existing condo, make it a point to review the condo rules and bylaws.
These documents are available to any potential buyer when placing an offer. In some cases, you can ask the seller’s agent to send you a copy of the rules before even placing an offer on the condo.
Note – Once you’ve decided to place an offer on a specific condo, put a condition of sale that lets you review the condo rules. Look for points that could apply to you or impact your real estate goals. The condition gives you the option of backing out of the purchase.
Grandfathered Condo Rules Often Don’t Transfer to New Buyers
Some condo bylaws get voted in after the development has been lived in for a few years. Because some owners were in breach of these rules once the rule got passed, they get a grandfather clause.
For example, this happens in condos that impose pet bans. Pet owners still get to have pets in the building but no new owners can bring them in.
As it relates to your condo purchase, a grandfather clause doesn’t necessarily transfer to you. So it’s not because you see a cat in the unit you visit that you will also be able to enjoy pets in the condo.
#1: Rental Restrictions or Prohibition
There are some condo developments that restrict percentage of units that can be rented out. In extreme cases, there are outright bans on all rentals.
Check the rules governing rental restrictions. Even if you’re not an investor now, ask yourself if you’ll one day want to rent out your condo.
#2: Short-Term Rental Bans
Thinking of offsetting your upcoming mortgage payments by renting out a room or your couch on AirBnB? Buyer beware.
Most condo developments outright ban short-term rentals.
Note – When looking for a short-term rental ban, look for rules that put a minimum length of time a unit must be rented for. The most common minimum rental occupancy times are 90 and 120 days.
Fines for dissuading short-term rentals are set as a deterrent and very aggressive. Most development will set it to $1,000 for a first infraction. Then second infractions are $1,000 followed by $1,000/day for each day the unit is rented out.
#3: Pet Restrictions or Prohibitions
Before you buy a condo, make sure you can take your pets with you. Some condos limit the amount an owner can keep in a unit. Others limit the weight of each animal. In some cases, there are full pet bans in effect.
Note – When reviewing the bylaws and regulations, it’s important to check for pet restrictions in three documents: the condo declaration, the condo rules and bylaws and the assembly minutes (a ban may be voted at the next annual meeting).
Buyers with therapy or support dogs generally don’t have to worry about pet restrictions. Courts have ruled favorably in favor of owners with such animals. But such potential buyers should still consult a lawyer before completing their condo purchase.
#4: Limitations on Flooring Types
Hoping to buy a condo and increase its value with upgrades? Good idea. But be careful: some condos have limitations on flooring materials. These are in place to limit the transfer of noise between condo units that share a floor and ceiling.
Check both the declaration and condo rules and bylaws for limitations on flooring types. Flooring limitations come in three varieties:
- Inclusive – You can only use these types of materials
- Exclusive – Do what you want as long as it’s not these materials.
- Prescriptive – You can use this material but you need to install this thickness of subflooring
Note – Be careful when buying a newly renovated condo that has flooring restrictions. If the owner installed hardwood floors when it wasn’t allowed it will become an issue for you. When it gets discovered, you’ll have to replace the flooring.
You can find flooring limitations in the condo rules and bylaws. However, also check amendments that may have been voted in over the years.
#5: Condo Insurance Requirements
Condo developments have insurance that covers damages to the building, common areas and amenities. This insurance doesn’t cover what’s inside your unit. It also doesn’t cover damage caused by you to other units or the building.
Damage originating from your unit can affect other owners or the building’s common areas. Think of a fire and the subsequent water damage it causes. For this reason, most communities have rules that require each condo owner to purchase their own insurance.
In most cases, buying a condo insurance policy doesn’t cost much. But some developments have rules that require you to get substantial liability coverage. This will increase your insurance costs.
#6: Noise Management, Complaints and Resolutions
What you do in your condo is generally your business. Unfortunately, sound and noise travel through floors and walls. That’s why there are always condo rules and bylaws that govern noise management, how complaints are taken in and resolved.
If you occasionally have people over, pay attention the condo rules and bylaws that govern noise before you buy. The last thing you want is to be that host that reminds everyone to keep the noise down.
In most buildings, these rules are flexible. There’s an understanding that the occasional late night might can get a bit loud. The disturbance is taken as a one-off if other owners are tolerant. But in other buildings, it’s taken to extremes. Hefty fines can be imposed on first infractions.
#7: Construction or Renovation Approvals
All condos restrict what you can do to the building itself, the common areas and the amenities. However, in some developments, there are specific limitations or restrictions on what can be renovated. That includes construction inside your condo.
Before buying a condo, check if alterations or renovations require the approval of the condo corporation or condo buy. You might be surprised how difficult and complicated it is to have renovations approved.
Wrapping Things Up
Once you’re ready to place an offer, make sure you add a condition that gives you a chance to review the condo documents. Go through the condo declaration, rules and bylaws and look for anything that you aren’t comfortable with.
