Toronto Condo and Real Estate Blog

by Denise Lash

Karen and John have just bought their first condominium townhome. When they began searching, their main concern was with the location and the look of the home. They hadn’t really considered the legal issues and obligations surrounding their purchase.

It was only after signing the Agreement of Purchase and Sale that Karen and John started thinking about what they had bought. They were surprised to find that condos differ greatly from freehold townhomes.

Here are just a few of those differences:

• The purchase involves two stages of closing. First is the occupancy closing (or possession date), when the municipality approves occupancy. Not everything in the building may be completed at this point, and Karen and John may have to move in regardless of any deficiencies or unfinished items. The second (or final) closing occurs after the registration of the description and the creation of the condo corporation.

• During the occupancy period (prior to the final closing), Karen and John must pay an occupancy fee—similar to rent.

• Upon final closing, Karen and John must pay monthly condo fees. These expenses are based on an annual budget and are subject to change with no restrictions on increases. The fees are in the hands of the board of directors of the condo corporation.

• Karen and John were surprised to learn that they needed different insurance coverage than what is required for a freehold home.

• The couple is required to maintain upkeep on portions of their home, including the back and front yards. Each condo corporation contains different maintenance and repair obligations.

• The townhome documentation places restrictions on altering or adding anything to the exterior of the building. Karen and John won’t be able to change a mailbox or exterior light fixture, re-landscape, or install a screen door without getting prior approval. There are also prohibitions on erecting fences, pools, hot tubs, decks, and satellite dishes.

• The documentation outlines rules on the use of the home, including what kinds of pets are allowed and prohibitions on skate boarding, hockey playing, rollerblading, and basketball playing on the driveway.

• The couple had no idea that, as owners, they would be involved with annual general meetings, voting and elections, budgets, financial statements, and other corporate matters.

Karen and John wish they had known these things before purchasing. It would have made a difference. At least now they’re prepared for their new life as condo owners, and this preparation will assist them with a smoother transition into the condo lifestyle.

Denise Lash is a condo lawyer with Miller Thomson LLP and the host of the television program MondoCondo. Visit www.torontocondoshow.com.

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by Dan Flomen

One of Toronto’s best-kept secrets is the area surrounding the Mount Pleasant and Eglinton corridor. It has everything one could need, including transportation, entertainment, restaurants, and the security to walk around at night without having to look over your shoulder.

Over 10 years ago, Urbancorp Developments created The Townhomes of 123 Eglinton. Situated between Redpath and Lillian, the project consisted of 184 stacked units developed in an unused parking lot behind the Union Carbide building. It wasn’t the first project in the area, but it did spawn the resurgence of developers looking at this part of town. Tridel followed with the removal of Union Carbide and the creation of a modern condominium, The Tower at 123 Eglinton, catering to both first-time and move-up buyers. Several small builders then bought infill sites and developed them into townhomes and small condos.

Four projects are now under construction in the immediate vicinity. Although each is unique unto itself, all share in the belief that this area is a booming market with much to offer. 900 Mount Pleasant by Plazacorp, Chateau Royal by Panterra Federated Properties, 88 on Broadway by Cityzen and Myriad, and Panache by Stanford Homes will eventually become home to hundreds of new residents.

Situated just a couple of blocks north of Eglinton, 900 Mount Pleasant will have a dramatic visual impact on the surrounding area. Immediately to the east are some of Toronto’s fastest-selling homes, and to the west are a growing number of new projects and the shops of Yonge Street. 900 Mount Pleasant will also incorporate a number of town manors, which will serve to enhance the overall look and quality of the project.

Chateau Royal, located three blocks south of Eglinton, is a higher end condo featuring 97 exquisite suites, many of which are one-of-a-kind. Its stucco exterior and traditional windows will blend in with the shops along Mount Pleasant.

“These suites are better described as bungalows in the sky, with finishes that need not be upgraded. Our purchasers are a mix of first-time and move-up buyers coupled with empty nesters. The one thing they have in common is that they appreciate the small building size coupled with its French charm,” says Michael Tullock, sales representative for Chateau Royal.

88 on Broadway launched with huge success. Its suites not only feature inspiring floor designs, but are also well-priced. Now under construction, the new, beautifully appointed tower will be only minutes to Mount Pleasant and Yonge Street and will appeal strongly to those who either live in the area or grew up there.

“What we are creating is the perfect project for almost all residents of the Mount Pleasant-Eglinton area,” says Sam Crignano, president of Cityzen Development Group. “88 on Broadway is designed to reflect the lifestyle people currently enjoy, but to bring it all under one roof. No need for a health club; 88 on Broadway has one. No need to leave the area to find home ownership. It is now right there on their doorstep.”

Panache, a contemporary building, is located one block west of Mount Pleasant directly on Eglinton Avenue. Its residents will be able to walk out the front door and be on one of the most vibrant streets in the city with restaurants and shops only steps away.

The Mount Pleasant corridor, once thought of as an alternative to Yonge Street, has come into its own. It continues to flourish in this thriving market and it’s an area for both users and investors to keep an eye on.

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The great condo craze took on a new dimension in July as sales of high-rise condo suites in the 905 regions of Peel and York spiked at the expense of sales in the City of Toronto, reveals Desi Auciello, president of the Greater Toronto Home Builders’ Association (GTHBA).

While high-rise condo sales were up a modest 8% across the GTA, they increased by a whopping 260% in Peel region and an equally astounding 215% in York region. Meanwhile, high-rise unit sales fell by 32% in the City of Toronto.

Whereas Toronto typically accounts for 75 to 80% of monthly high-rise condo sales, its share of the market fell to just 49% in July as homebuyers were attracted to high-profile new high-rise condo developments in Markham and Mississauga.

“We’re seeing the front edges of a gradual shift towards intensification of our suburban cores, although it won’t be quite as dramatic as we are currently witnessing,” says Auciello. “The City of Toronto will continue to represent the solid core of the condo market, particularly as the waterfront lands come on stream, however the 905 regions are coming on strong,” notes Auciello.

Auciello adds that 46% of total new-home sales in July were high-rise condos, continuing a remarkable shift in purchasing behaviour among new-home buyers.

According to RealNet Canada Inc., the GTHBA’s independent source of new-home market information, there were 3,096 new homes and condos sold in July. High-rise unit sales were up 8% while low-rise unit sales (single-detached, semi-detached and town-homes) were down 18% compared with July 2005, resulting in a modest 8% overall decline in sales.

The GTA new-home price index remained steady in July at $392,138 for low-rise homes and $312,966 for high-rise apartments.

The index is essentially the average asking price of all the remaining new homes and condos currently available for sale, as calculated by RealNet Canada Inc.

The new-home price index is based on currently available new-home offerings, weighted by remaining inventory, for projects of 15 or more units, excluding ultra-luxury product across the GTA.

The top five municipalities in the GTA for July were Toronto, 817; Mississauga, 553; Markham, 453; Brampton, 353 and Vaughan, 169.

With more than 1,400 members, the GTHBA is the voice of the residential construction industry in the Greater Toronto Area. Established in 1921, the association is comprised of land developers, home builders, professional renovation contractors, sub-contractors, suppliers, service, professional and financial firms. It is proudly affiliated with the Ontario and Canadian Home Builders’ Associations.

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