It is essential to remember and submit the legal requirements that must be met. Ignoring any of these can lead to costly consequences, which can be tedious to deal with.
Buying a condominium is a major decision for many people. Some may think it is the same as buying a house, but there are differences between the two. Things like physical elements, neighbors, and the mortgage process are some of the things that separate a house and condo.
Before making that purchase, it is essential to understand what comes with the condo. This property is ideal for single-family residences that require less maintenance. Condos are significantly smaller than a house, so space may be a challenge.
There are also conditions, restrictions, and loans that people need to process, so it is best to take time to address these properly.
If all these sounds promising, then it is time to begin the process of buying a condo. This article is a guide when purchasing property and will discuss the legal requirements needed.
- Letter of Intent (LOI)
A letter of intent is a document you sign with the seller of a condo before you make an offer. It’s used to specify the terms and conditions of your purchase. The letter outlines the price you’re willing to pay for the unit and other important information about what happens next.
Signing this letter means that you have agreed to buy the condo from the seller at a price listed in the document—but nothing is final yet. You still need to make an offer on that unit, which means you have to present your offer to their real estate agent or broker.
- Reservation Application
A reservation application allows you to see what type of unit is available, how much it costs, and learn other details about it, like tax rates and maintenance fees. The application also formalizes the agreement between you and the seller. It includes the seller’s promise to take the unit out of the market.
- Contract to Sell
A Contract to Sell is a legal document that outlines the agreement between the seller and buyer. The seller promises to sell the property to the buyer, and the buyer promises to buy the property. Other details like sales provisions are also included, and the buyer must comply with them before paying the property in full via home financing.
The contract also details many of your rights and responsibilities as a buyer. For example, it will outline how much you must pay at closing and when those payments are due. It will also show if any changes need to be made before closing.
- Tax Declaration
A tax declaration is a statement that legally declares how much tax-exempt land you own. The government uses this information to determine how much tax you should pay each year, so you must have accurate information on file with them. If you don’t have one, or if yours is out of date, there could be penalties for not paying taxes on time.
When you become a condo unit owner, you must request the City Assessor’s office to issue a Tax Declaration under you. You’ll start paying all tax obligations from that point onwards, and the declaration will require a photo and title of the property you bought.
Staying on Top of Things
Although it is a fun time to buy a new condo, it is essential to remember and submit the legal requirements that must be met. Ignoring any of these can lead to costly consequences, which can be tedious to deal with.
Overall, buying condominiums as an investment or even as a place to live can be an excellent purchase for your future, offering convenience to single-family residents or individuals through their numerous amenities, services, and sufficient spacing.