The insurance premiums are the amount paid by the insured monthly or annually to benefit in the event of a claim from the guarantees in the insurance policy. It is an expense towards the preservation, maintenance and administration of the immovable. Although the syndicate assumes this cost, it is charged back to the co-owners as a portion of their common expenses (condo fees).
The additional premium is a premium that is added to the existing premium. It results from a worsening of the risk or from the assumption of a new risk. This additional premium may be imposed during the course of a contract or upon its renewal. Risks are analyzed according to scales that are specific to each insurer. Ultimately, the syndicate will pay this additional premium, which will be charged to all of the co-owners through the common expenses (condo fees) or, at times, some of them.
The Law states that your syndicate's object, therefore its mission is "[...] the preservation of the immovable, the maintenance and administration of the common portions [...]." This implies that it has a duty to have carried out, over time, the work required to prevent the deterioration of the common portions of the immovable. The maintenance and conservation of its built up patrimony are therefore a must for any self-respecting co-ownership.
It is indeed a rare occurrence when a buyer pays its condo, in one single payment. Most of them must obtain a mortgage loan to finance their purchase. What are the criteria and conditions to get a mortgage loan? Whom should you get it from? Banks, credit unions or other sources? What are the policies of the major financial institutions in this market? What are the limitations when planning the financing of your new property?
Legal fees may hold back those co-owners wishing to assert their rights. Legal expenses insurance overcomes this obstacle.
What is legal expense insurance?
This insurance allows the reimbursement, in part or in full, of lawyers' or notaries' fees to prevent or resolve a dispute. However, this guarantee is subject to pre-established conditions, deductibles and caps.
Insurance companies offering legal fees insurance can propose a lawyer, although it cannot impose him to you. You remain free to retain the lawyer of your choice.
The final step in the purchase of your apartment is the signing of the deed of sale. As soon as all the prior conditions of the sale are satisfied, the vendor must transfer the property upon the payment of the price.
You move into your new condo. A few weeks later, a bailiff knocks on your door and serves upon you a notice of preservation of a legal hypothec of construction. He also served all your neighbors. Reading this document, you learn that a dispute remains unresolved between the contractor and a supplier (or subcontractor), concerning work performed or materials furnished that have not been paid by the contractor.