Buying a condominium can be a great option for first-time home buyers, downsizers, retirees, investors and people who want homeownership with less exterior maintenance. But buying a condo is different from buying a detached house.
When you purchase a condominium, you are not simply choosing a unit based on its kitchen, bedrooms, location and purchase price. You are also buying into a condominium corporation and taking on a share of the responsibilities and costs associated with the property.
That means condo fees, reserve funds, special assessments, insurance, bylaws, parking, pet restrictions, rental rules and the condominium corporation's finances can all affect your ownership experience and potentially the future resale value of your property.
If you are selling a condo in Winnipeg, these same factors can influence how buyers compare your property with other units and how your condo should be positioned in the market.
What Is a Condominium?
A condominium is a form of property ownership. Many people hear "condo" and picture an apartment in a multi-storey building, but condominiums can include apartment-style units, townhouses, bungalow condos, two-storey condos, bare land condominiums, luxury condos, new-construction condos and converted buildings.
The physical appearance of a property does not determine whether it is a condominium. The important difference is the ownership structure.
What Do You Actually Own When You Buy a Condo?
The exact ownership boundaries depend on the condominium plan and governing documents. Generally, a condominium owner owns their individual unit and also has an interest in the condominium’s common elements or common property.
Common areas may include hallways, elevators, lobbies, stairwells, roofs, landscaping, shared mechanical systems, recreational facilities, visitor parking and other shared spaces.
Parking stalls, balconies, patios, storage lockers and yards should not automatically be assumed to form part of your unit. Depending on the condominium, they may be separately titled, common elements, exclusive-use areas or subject to another arrangement.
This is why reviewing the condominium documents is important.
Condo Ownership vs. Renting an Apartment
A condo may look similar to a rental apartment, but the ownership is completely different. When you rent, you normally pay rent to a landlord and do not own the property.
When you purchase a condo, you own real estate and can build equity as you repay your mortgage, subject to changes in market value. As an owner, you are also responsible for expenses such as your mortgage, property taxes, applicable insurance, condo fees and certain repairs or maintenance. You are also subject to the condominium corporation's declaration, bylaws and rules.
What Are Condo Fees?
Condo fees are regular contributions made by condominium owners toward the condominium corporation's shared expenses.
Instead of each owner individually paying for every shared service or repair, the corporation collects money from owners and uses it to operate and maintain the condominium property according to its responsibilities.
Condo fees are normally an additional expense on top of your mortgage payment, so buyers should include them when calculating the true monthly cost of ownership.
What Do Condo Fees Cover?
Every condominium is different. Depending on the property, condo fees may contribute toward:
- Common-area maintenance
- Landscaping and snow removal
- Cleaning and property management
- Common-area electricity
- Building and elevator maintenance
- Garbage services
- Common-property insurance
- Reserve fund contributions
- Water or heating in some condominiums
- Recreational facilities and amenities
- Other shared operating expenses
Some condo fees include several utilities while others include very few. Never assume that water, heat, electricity, internet, parking or another service is included simply because another building includes it. Verify exactly what is covered.
Are Property Taxes Included in Condo Fees?
Typically, condo owners should expect property taxes to be a separate ownership expense rather than assuming they are included in the advertised condo fee.
When comparing properties, calculate the complete estimated monthly cost:
Mortgage Payment + Property Taxes + Condo Fees + Condo Insurance + Utilities Not Included + Other Applicable Costs
This provides a much more realistic comparison than looking at purchase prices alone.
Why Do Condo Fees Vary So Much?
A higher condo fee does not automatically mean a condominium is bad, and a lower fee does not automatically mean it is better.
Fees can vary because of the building's age and size, number of units, amenities, elevators, heating systems, utilities included, insurance, property management, landscaping, snow removal, maintenance requirements and reserve fund contributions.
For example, a building with elevators, heated underground parking and extensive common facilities may naturally cost more to operate than a smaller complex with few amenities.
The better question is: What am I receiving for the condo fee, and is the condominium corporation financially prepared for future expenses?
Can Condo Fees Increase?
Yes. Condo fees should not be treated as a permanently fixed expense.
Insurance, utilities, repairs, maintenance, management expenses and reserve fund requirements can change over time. Buyers should review available financial information and understand both the current fee and the condominium corporation's overall financial position.
What Is a Reserve Fund?
A reserve fund is money set aside by the condominium corporation for major repairs and replacement of common elements over time.
Depending on the property, future expenses could involve roofing, windows, exterior components, paving, elevators, plumbing, mechanical equipment, heating systems and other major building components.
A condominium may look beautiful today, but buyers should also consider whether the corporation appears financially prepared for major future expenses.
What Is a Reserve Fund Study?
A reserve fund study helps evaluate major common components, their expected remaining life, anticipated future costs and whether planned contributions are reasonably aligned with those future needs.
Buyers should consider: What major repairs are expected? When might they be required? How much could they cost? How much money is currently available? Does the corporation appear to be planning appropriately?
The reserve fund balance alone does not tell the entire story. It should be considered together with the anticipated future expenses of the condominium.
What Is a Special Assessment?
A special assessment is an additional amount owners may be required to pay when the condominium corporation needs funds beyond its normal operating budget or available reserves.
For example, a major repair or unexpected expense could result in additional money being collected from owners. Depending on the circumstances, an assessment can potentially be substantial.
Buyers should investigate whether an assessment has been approved or discussed, whether major repairs are planned and whether significant issues appear in the condominium documents.
Sellers should also understand that known assessments can affect buyer interest, financing and negotiations.
Review the Condominium Corporation's Financial Health
When buying a condo, you are effectively joining a shared financial structure with other owners. The condition of your individual unit matters, but so does the condition of the condominium corporation.
Depending on the transaction and documents available, buyers and their professional advisers may review:
- Budgets and financial statements
- Reserve fund information and studies
- Meeting minutes
- Assessment notices
- Insurance information
- Bylaws and rules
- Planned major repairs
- Other required condominium disclosure information
The goal is to identify significant issues before becoming committed to the purchase whenever possible.
Why Meeting Minutes Matter
Meeting minutes can provide useful information about what has been happening within the condominium corporation.
They may contain discussions about roof problems, water intrusion, elevator repairs, parking, insurance, security, noise complaints, major maintenance, proposed renovations, assessments, disputes or upcoming expenditures.
One complaint does not necessarily indicate a serious problem. The important thing is to look for significant issues or recurring patterns that could affect ownership.
Condo Bylaws and Rules
Owning a condo means living within the rules governing that condominium.
Rules may address pets, rentals, short-term rentals, smoking, noise, barbecues, balconies, parking, renovations, flooring changes, exterior alterations, moving procedures and use of common areas.
Do not assume something is permitted simply because it was allowed in another building.
Can You Have Pets in a Condo?
Maybe. Some condominiums allow pets while others restrict their number, size or type.
If owning a dog, cat or another pet is important to you, verify the applicable rules before purchasing rather than relying only on a verbal statement.
Can You Rent Out Your Condo?
This depends on the condominium, applicable laws, lender requirements and governing documents.
Investors should investigate rental-related rules before purchasing rather than assuming the unit can automatically be rented in the manner they intend.
Short-term rentals may involve additional condominium and municipal requirements. If rental income is an important reason for purchasing, complete the appropriate due diligence before becoming committed.
Can You Renovate a Condo?
Owning a condo does not necessarily mean you can make every alteration without approval.
Changes involving plumbing, electrical systems, walls, windows, doors, flooring, balconies, structural components or common elements may require approval.
Check the condominium's requirements before beginning significant renovations.
Condo Insurance
A common mistake is assuming that because the condominium corporation has insurance, an individual owner does not need their own coverage.
The corporation's policy and an owner's individual condo insurance serve different purposes. An owner's policy may cover personal belongings, improvements, liability and other risks not covered in the same way by the corporation's policy.
Coverage varies, so buyers should speak with an insurance professional and understand what the condominium corporation's insurance does and does not cover. It is also worth asking about insurance deductibles.
Financing a Condo
Getting a mortgage for a condominium can involve more than the buyer's income, credit and down payment.
Depending on the lender and property, the condominium itself may also be considered. Potential concerns can include property condition, insurance issues, significant assessments, major building problems, marketability and other lender-specific requirements.
Tell your lender or mortgage professional early that you are purchasing a condominium.
How Does Writing an Offer on a Condo Work in Manitoba?
Writing an offer on a condominium is similar to writing an offer on a house, but there are additional steps because the buyer also needs an opportunity to receive and review information about the condominium corporation.
A condo offer may address:
- Purchase price
- Deposit
- Possession date
- Financing condition, if applicable
- Home inspection condition, if applicable
- Included appliances and other items
- Parking and storage
- Other terms specific to the transaction
The buyer's REALTOR® prepares and submits the offer. The seller can accept it, reject it or make a counteroffer.
Once the buyer and seller enter into an agreement of purchase and sale, the condominium disclosure and cooling-off process becomes particularly important.
Manitoba's 7-Day Condo Cooling-Off Period
One of the biggest differences between buying a condo and buying many other residential properties in Manitoba is the statutory cooling-off period.
Under The Condominium Act (Manitoba), the cooling-off period ends at midnight on the seventh day after the later of:
- The day the buyer and seller enter into the agreement of purchase and sale, or
- The day the seller has complied with the applicable condominium disclosure obligations.
This means the seven-day calculation does not necessarily begin simply because your offer has been accepted.
During the statutory cooling-off period, a buyer may cancel the agreement for any reason by providing the required written notice within the applicable period.
Government resource: The Condominium Act (Manitoba)
What Condo Documents Does the Buyer Receive?
For a typical resale condominium, the disclosure package can include documents and information such as:
- Seller's condominium disclosure statement
- Condominium corporation disclosure statement
- Current condominium corporation budget
- Financial information
- Current bylaws and rules
- Property management information, where applicable
- Reserve fund study or most recent update, where required
- Information about the cooling-off period
- Information about rights relating to a material change
- Other documents or information required under The Condominium Act
The exact documents depend on the property and circumstances.
Government resource: Government of Manitoba Condominium Forms and Information
What Should You Do During the Cooling-Off Period?
Do not treat the cooling-off period simply as seven extra days to decide whether you like the kitchen.
This is an important opportunity to conduct condominium-specific due diligence.
Review:
- Condo fees and what they include
- Budget and financial information
- Reserve fund and reserve fund study
- Special assessments
- Planned major repairs
- Available meeting information
- Insurance
- Pet and rental rules
- Renovation restrictions
- Parking and storage arrangements
- Other issues that could affect ownership or resale
Your REALTOR®, lawyer, mortgage professional, insurance representative and other appropriate professionals may all have a role in your due diligence.
Can You Cancel During the Cooling-Off Period?
Under Manitoba condominium legislation, a buyer has a statutory right to cancel during the applicable cooling-off period.
The cancellation must be made properly and within the required timeframe. Written notice is required.
A buyer who wants to exercise a statutory cancellation right should contact their REALTOR® and Manitoba real estate lawyer immediately rather than waiting until the deadline.
Government resource: Manitoba Condominium Purchase and Sale Information
What Happens to the Deposit if the Buyer Properly Cancels?
The Condominium Act contains provisions dealing with the return of money paid under an agreement when a buyer validly exercises an applicable statutory cancellation right.
Do not assume that simply telling someone verbally that you no longer want the condo is enough. The cancellation must be completed properly and within the permitted timeframe.
What If Something Important Changes After the Cooling-Off Period?
Manitoba condominium legislation also provides certain buyer protections relating to a material change in required disclosure information after the initial cooling-off period.
Additional cancellation rights and deadlines may apply depending on what changed, whether proper notice was provided and when possession is scheduled.
Because these are legal rights involving strict deadlines, contact a Manitoba real estate lawyer immediately if a significant change occurs.
A Condo Purchase Timeline in Simple Terms
A typical resale condominium purchase may look something like this:
Find a Condo → Review Available Information → Write Offer → Negotiate → Accepted Offer → Receive Required Condo Disclosure Documents → Complete Financing/Inspection and Other Conditions → Review Condo Documents → Cooling-Off Period Expires → Lawyer Completes Closing → Possession
The exact order and timing can vary depending on the agreement, when documents are provided and the particular transaction.
New Condo vs. Resale Condo
A new-construction condo may offer new finishes, modern layouts, newer mechanical systems, lower immediate maintenance and applicable new-home warranty protection.
Buyers should also understand estimated operating expenses, future condo fees, construction timelines, possession arrangements, GST and any applicable rebates, parking, storage, builder agreements and warranty coverage.
A resale condo may provide a longer history of condo fees, budgets, financial statements, reserve fund planning, past repairs and assessments. That history can be valuable during due diligence.
Advantages of Buying a Condo
Depending on the property and your lifestyle, advantages can include:
- Potentially lower purchase price than some detached homes
- Less exterior maintenance
- Snow removal and landscaping may be handled by the corporation
- Shared amenities
- Security features in some buildings
- Convenient locations
- Potentially attractive option for downsizers
- Opportunity to own rather than rent
For downsizers and frequent travellers, having less exterior maintenance can be particularly attractive.
Potential Disadvantages of Condo Ownership
Consider monthly condo fees, possible fee increases, potential special assessments, rules and restrictions, shared decision-making, less control over common property, proximity to neighbours and possible restrictions on pets, rentals or renovations.
Someone who wants maximum control over their property may prefer another form of homeownership.
What Should You Look for During a Condo Showing?
Do not inspect only the unit. Look at the entire property.
Check the hallways, common areas, elevators, exterior condition, parking, landscaping, windows, balconies, storage, security, cleanliness, noise levels, visitor parking and amenities. Watch for signs of water damage or poor maintenance.
Inside the unit, consider appliances, plumbing, electrical components, windows, heating and cooling equipment, flooring and signs of moisture or damage.
A professional home inspection may also be appropriate depending on the property and circumstances.
Parking and Storage: Never Assume
Before purchasing, determine whether parking is included, how many stalls there are, whether parking is indoor or outdoor, heated or unheated and whether it is titled, assigned, leased or otherwise designated.
Do the same for storage.
Important ownership details should be verified through the appropriate documents rather than relying solely on a listing description.
Location Still Matters
Consider proximity to employment, schools, shopping, public transportation, restaurants, parks, medical services, major roads, Downtown Winnipeg, universities and colleges.
The unit’s position within the building matters too. Floor level, direction, view, balcony, proximity to elevators, traffic exposure and parking location can influence desirability and resale value.
How to Compare Condos With Different Condo Fees
Suppose Condo A has a $300 monthly fee and Condo B has a $500 fee.
Condo A initially looks cheaper. But what if Condo B includes heat, water, underground parking and additional services while Condo A includes very little?
Do not simply compare $300 with $500.
Compare the total monthly ownership cost, what the fees include and the financial health of each corporation.
A very low condo fee is not necessarily a bargain if significant expenses are approaching or the corporation is not adequately prepared for future repairs.
What Should Condo Buyers Budget For?
Depending on the transaction, buyers should consider:
- Down payment
- Mortgage payment
- Condo fees
- Property taxes
- Condo insurance
- Utilities
- Legal fees and disbursements
- Home inspection, if obtained
- Moving expenses
- Applicable mortgage default insurance
- Applicable taxes
- Closing adjustments
- Immediate repairs or renovations
Your lawyer and mortgage professional can provide estimates specific to your purchase.
Selling a Condo in Winnipeg
Selling a condominium is also different from selling a detached house.
With a condo, another owner in your building may be selling an almost identical unit at the same time. Buyers can compare the properties very easily, making pricing, presentation and marketing especially important.
How Is a Winnipeg Condo's Value Determined?
Important factors can include:
- Recent sales in the same building or complex
- Active competing listings
- Floor level
- Square footage
- Bedrooms and bathrooms
- Interior condition and renovations
- View and exposure
- Balcony or patio
- Parking
- Storage
- Condo fees and what they include
- Amenities
- Building condition
- Reserve fund and financial position
- Known assessments
- Location
- Current Winnipeg market conditions
The unit directly above or below yours may be an excellent comparable, but differences still need to be considered.
Why Recent Sales in Your Building Matter
If a similar unit recently sold for $250,000, listing an almost identical unit for $290,000 requires a meaningful reason.
Perhaps yours is fully renovated, has a better view, superior parking or another significant advantage. If not, buyers may simply choose the better-value property.
Proper pricing from the beginning can be particularly important when several comparable condos are available.
What If Several Units in Your Building Are Already for Sale?
You can still sell, but buyers need a reason to choose your condo.
That advantage could be better pricing, superior condition, professional presentation, a better floor or view, renovated kitchen or bathrooms, superior parking, flexible possession or stronger marketing.
Before listing, compare your condo objectively with every competing unit buyers are likely to see.
Do Condo Fees Affect Resale Value?
They can affect affordability and buyer perception.
A higher fee may be understandable when it includes extensive utilities, services or amenities. A high fee with relatively few inclusions may be harder for buyers to justify.
Sellers should clearly communicate what the condo fee includes rather than simply advertising the monthly amount.
Can a Special Assessment Affect a Condo Sale?
Yes. An existing or anticipated special assessment may affect buyer interest, negotiations, financing and the overall transaction.
If you are selling and know about an assessment or significant condominium issue, discuss your disclosure obligations and transaction strategy with your REALTOR®and lawyer.
Should You Renovate Your Condo Before Selling?
Not necessarily.
Large renovations immediately before selling do not always produce a dollar-for-dollar return.
Fresh neutral paint, professional cleaning, carpet cleaning, minor repairs, updated light fixtures, decluttering and improved presentation may provide better value.
Before spending $20,000 or $30,000 renovating, compare your unit with recent sales and current competing listings. Sometimes selling clean, well-presented and correctly priced is the better financial decision.
What Should a Condo Seller Prepare Before Listing?
Depending on the property, useful information can include:
- Current condo fee and what it covers
- Parking and storage details
- Bylaws and rules
- Available financial documents
- Reserve fund information
- Assessments
- Recent notices
- Renovation information
- Utility costs where relevant
- Property taxes
- Amenity information
Your REALTOR® and lawyer can help determine which documents and disclosures are required for your particular transaction.
How to Make Your Condo Stand Out Online
Condo buyers may see many similar-looking properties online, so strong marketing should emphasize what makes yours different.
That could include a corner or top-floor location, balcony, view, underground parking, two parking stalls, in-suite laundry, storage, renovated kitchen, updated bathrooms, amenities or utilities included in the condo fees.
Professional photography and accurate marketing can make an important difference when buyers are comparing several similar units.
Buying a Condo as an Investment
A condo can potentially work as a rental investment, but investors should analyze the complete numbers.
Consider:
Purchase Price + Financing Costs + Property Taxes + Condo Fees + Insurance + Owner-Paid Utilities + Maintenance + Vacancy Allowance + Property Management, If Applicable + Potential Future Assessments
Compare those expenses with realistic market rent and investigate the condominium's rental rules before purchasing.
Condo Buyer Checklist
Before purchasing, find out:
- What are the condo fees and what do they include?
- Have fees increased recently?
- What is the condition of the reserve fund?
- Is there a current reserve fund study?
- Are major repairs planned?
- Are there current or proposed special assessments?
- What do the available condominium documents reveal?
- What are the pet and rental rules?
- What parking and storage are included?
- Which utilities are paid separately?
- What insurance will you need?
- Are there renovation restrictions?
- Have major building components recently been replaced?
- Are there issues that could affect financing or insurance?
- How does the unit compare with recent sales?
- What is the total estimated monthly ownership cost?
Condo Seller Checklist
- Before listing, consider:
- What have comparable units actually sold for?
- Which units are currently competing with yours?
- How does your condo compare in condition and features?
- What does your condo fee include?
- Are there assessments or upcoming major projects?
- Should you renovate or sell in the current condition?
- Which improvements are worth making?
- What parking, storage, view or other features should be emphasized?
- How can your unit stand out from other listings in the building?
Is a Condo Right for You?
There is no universal answer.
A condominium can be an excellent choice for someone who values convenience, lower exterior maintenance and shared services. Someone who wants maximum control over their property and does not want monthly condo fees or shared rules may prefer a detached home.
Do not choose a condo based only on a beautiful kitchen, low purchase price or low condo fee.
Look at the unit, the building, condo fees, reserve fund, rules, financial information, upcoming expenses and potential resale considerations.
Thinking About Buying a Condo in Winnipeg?
If you are considering a condo, I can help you compare available properties based on more than just the asking price.
We can look at recent sales, current competition, condo fees and inclusions, parking, location, resale considerations and the condominium information available for review.
The goal is not simply to find a condo you like. It is to help you make an informed real estate decision and complete the appropriate due diligence before purchasing.
Thinking About Selling Your Condo in Winnipeg?
Pricing a condominium requires a different approach from pricing many detached homes.
Recent sales within your building, competing listings, condo fees, parking, floor level, renovations, view, amenities and current Winnipeg market conditions can all influence value.
If you are considering selling, I can prepare a comparative market analysis using recent Winnipeg condo sales and current competition to help determine an appropriate listing strategy.
Even if you are not ready to sell immediately, knowing how your condo compares with other units can help you decide whether improvements are worthwhile and when it may make sense to list.
Final Thoughts
A condo can provide an excellent path to homeownership, a convenient downsizing option or a potential investment. But the best condo is not necessarily the one with the lowest price or lowest monthly fee.
Understanding the condominium corporation, finances, fees, reserve planning, rules, upcoming expenses, offer process and competing properties is an important part of making an informed decision.
Whether you are buying your first condo, downsizing from a house, purchasing an investment property or preparing to sell a condominium in Winnipeg, doing the homework before making a decision can help you avoid expensive surprises later.
For property-specific legal, tax, insurance, financing or condominium-document advice, consult the appropriate qualified professional.
