How to sell your condo in Canada

Selling a condo typically involves profiling more than the unit itself as buyers also assess the building they’re buying into. Sellers should prepare to answer questions from interested buyers on maintenance fees, upcoming repairs, special assessments, insurance, and even your condo corporation’s financial health.

That can make a condo sale more complicated than simply getting your unit ready for showings. Before you list, there are documents to gather, potential problems to uncover, and costs to understand.

Toronto real estate lawyer Bob Aaron says condo sellers should involve their lawyer before accepting an offer. 

“My biggest wish is that the seller’s lawyer is consulted and given a chance to review the offer before acceptance. A short review at the beginning can prevent an expensive dispute at the end.”

Here’s what to check before putting your condo on the market.

What can make your condo harder to sell?

Several issues such as high maintenance fees, expected assessments, major repairs, weak financial health of your condo corporation, significant insurance claim history, and restrictive building rules can make your condo harder to sell or affect what buyers are willing to pay. These can include:

• Maintenance fees: Buyers may compare monthly fees of your property with similar buildings, particularly if your condo fees are high or have increased significantly.
• Special assessments and major repairs: A large assessment or upcoming work on the roof, elevators, plumbing, windows, or other major building components can raise questions about future costs and potential disruption.
• Building's financial position: Buyers may review your condo corporation's financial information and reserve planning as part of their due diligence.
• Insurance concerns: Your building's insurance coverage, claims history, and deductibles may affect a buyer's assessment of your property and costs of ownership.
• Rules and unit-specific issues: Pet and rental restrictions, parking arrangements, unpermitted renovations, title problems, and discrepancies involving parking or storage can all create questions or complications during a sale.

These issues won’t necessarily prevent a sale, but they can affect how buyers assess your property and how much they’re willing to offer. Before listing, find out what a prospective buyer is likely to discover during their due diligence and be prepared to address questions about it. 

What should you do before selling your condo?

Before you list your condo, take some time to get both your unit and associated paperwork in order. A little preparation can help prevent surprises later in your selling process. Here's a breakdown of information you should collect and what buyers can glean from each of these documents.

1. Budget for costs of selling

Along with any repairs or improvements you choose to make, account for costs of selling a condo. Estimated expenses during a property sale can include real estate commission, legal fees, moving costs, and, depending on your circumstances, mortgage discharge, or other fees. 

Ask your real estate agent for a breakdown of expected selling costs, and check with your lawyer or mortgage lender about any additional fees. 

Aaron recommends seeking  an estimate before listing: “Obtain a mortgage payout estimate so that a discharge penalty does not become a closing surprise.”

Find out: What are the closing costs for a new condo?

2. Review your condo or strata documents

Find out what buyers are likely to see during their due diligence, including information about the corporation or strata, financial statements, meeting minutes, upcoming work, special assessments, and applicable rules. In Canada, specific condo corporation documents and terminology can vary by province.

3. Find out about upcoming costs

Check whether there are planned repairs, special assessments, or fee increases that could affect your condo property. If you know about a significant upcoming expense, understand how it could affect your sale, and be prepared to explain it to prospective buyers.

Aaron also recommends addressing responsibility for a special assessment in the purchase agreement. 

“Where a special assessment exists or is anticipated, the purchase agreement should clearly allocate responsibility between buyer and seller, including instalments payable after closing.”

4. Deal with obvious repairs

Fix minor issues that could make your unit look poorly maintained, such as damaged flooring, leaky faucets, broken fixtures, or scuffed walls. Major renovations may not be worth the cost when you're preparing to sell.  

5. Declutter and improve presentation

Remove excess furniture and personal belongings and clean thoroughly so your unit feels spacious, well-maintained, and ready to move-in.

6. Gather information about renovations

Keep records of significant renovations or upgrades, including permits, invoices, and contractor information where available. If work was done without required approvals, find out how the issue should be addressed before listing rather than waiting for a buyer or lawyer to discover it. 

7. Review your insurance

Confirm that your condo insurance is up to date and that you understand how your individual coverage relates to your condo corporation or strata's insurance. If you've made significant renovations or upgrades, make sure your insurer has all relevant information.

Read more: Everything you need to know about condo fees

What condo documents do you need to sell your property?

The exact documents you may require to sell your condo vary depending on where you live. Buyers may want to review information such as:

• Condo corporation or strata financial information: budgets, financial statements, and reserve fund or contingency reserve information.
• Meeting minutes and other records: may reveal discussions about major repairs, building problems, or upcoming expenses.
• Maintenance fees and special assessments: current amounts, recent increases, and any amounts you owe or expect.
• Governing rules, bylaws, and declarations: restrictions that could affect prospective buyer's plans for the property.
• Insurance information: corporation's coverage, claims history, and deductibles where available.
• Details about unit: parking spaces, storage lockers, and any renovations or alterations that may require documentation or approval.

Aaron says sellers should also verify exactly what they're selling. “The listing agent should be told, and should verify, the unit and level number(s) for the unit, parking and locker, and the current common expenses.”

Specific documents you may need prior to sale and terminology could vary by province. For example, Ontario buyers may request a status certificate, while in B.C., a buyer may review documents such as the Form B Information Certificate, strata meeting minutes, and depreciation report.

Ask your real estate agent or lawyer which documents are relevant to your property and whether it's worth obtaining them before you list.

Learn more: With prices dropping, is this a good time to buy a condo in Toronto?

Can condo insurance affect your sale?

Yes, insurance can be a consideration when selling a condo, particularly if the building has a history of significant claims or carries a large insurance deductible.

A condo owner typically has their own insurance policy, while the condo corporation or strata carries separate coverage for the building and common property. The two policies cover different risks and responsibilities, so buyers may want to understand how your building's insurance could affect their costs or coverage.

Before listing, review your own policy and make sure your insurer has up-to-date information about any significant renovations or improvements you've made to the unit. It's also worth finding out whether there are any building-level insurance issues that a prospective buyer could encounter during their due diligence.

While the condo is still yours, don't assume you can cancel your insurance simply because the property is listed. Check with your insurer about when your policy coverage should end or be transferred. 

Bottom line

Selling your condo takes some preparation beyond getting your unit ready for showings. Buyers are also evaluating your building, its finances, rules, maintenance, and potential future costs.

Before you list, prepare your unit for showings, review your building's documents and upcoming costs, and make sure any known issues are understood and properly addressed. Check your insurance and other paperwork, too. Doing this work early can help you avoid surprises once you have a buyer. 

Frequently Asked Questions (FAQ)

Is it worth renovating a condo before selling?

Not necessarily. Smaller repairs and improvements that better your unit's condition or presentation may be worthwhile, but major renovations don't guarantee you'll recover what you’ve spent through a higher sale price. Ask your real estate agent which improvements are likely to matter in your local market before taking on a large project. 

Do I need to disclose problems with my condo?

Disclosure requirements vary by province and nature of the issue. If you're aware of a significant problem with your unit or building, talk to your real estate agent or lawyer about your obligations before listing.

Should I keep my condo insurance until the sale closes?

Generally, yes. You remain listed as the owner until your sale transaction closes, so don't cancel your insurance simply because you’ve listed your property. Ask your insurer whether you need to make any changes to your policy while your condo is on the market.