If you are thinking about purchasing a Strata Property there are a number of things to consider before you take the leap.
Finding a Real Estate Agent that is familiar with Strata's is the first step. From reading the meeting minutes and bylaws, to researching the history of the building you want to purchase in it can be overwhelming and time consuming.
As a Strata expert I can help you every step of the way to make sure you are making an educated decision.
Below is a list of things to consider when purchasing a Strata. I will walk you through every step along the way!
There’s good news for consumers who have hesitated to buy a condo because of uncertainty about water penetration problems. Over the past few years, a tremendous amount of information has become available to help buyers find a sound, well constructed home.
"By working closely with a Realtor, buyers can make a thorough and educated investigation of a strata property before purchasing," said Real Estate Board of Greater Vancouver president Dick Coates. "REALTORS® have access to the resources and information they need to help their clients assess potential problems in strata buildings."
Before purchasing a strata property, here are some evaluation measures you can take with the assistance of me as your REALTOR®.
1. Review Strata Council minutes.
I will obtain copies of Strata Council minutes for the past 2 years or more if necessary, along with by-laws, financial statements, Annual General Meeting minutes, and any engineering reports that may have been completed. I will look for past problems, previous repairs, special assessments, and upcoming expenditures. I will make a point of reading all available documents and recommend you do the same. I always encourage you to come to me with any concerns or questions and I will bring any issues I feel important to your attention.
2. Ensure a maintenance program is in place.
Reading Strata Council minutes and speaking with the property manager will help you determine whether the building has a solid preventative maintenance program in place.
3. Check contingency fund.
By law, a portion of strata owners’ monthly maintenance fees must go into a "contingency fund" to pay for extraordinary repairs, such as a new roof or exterior painting. I will find out whether the building has a substantial contingency fund to cover any upcoming expenses.
4. Review the Property Disclosure Statement.
Sellers are asked to complete this form, which serves as a checklist for buyers to address concerns about the property's condition. It should be carefully reviewed for any defects or potential problems. A seller is not required to complete the Property Disclosure Statement and even when it is completed it is to the best of the Sellers Knowledge. It should not be relied upon, but used as a guide when doing your inspection.
5. Investigate the warranty program and builder background.
Whether the condo is new or resale, I can find out what type of warranty the building carries, noting the limits and duration of coverage. He or she may also be able to help you obtain background information about the builder/developer of the project. These warranties are only good for 10 years and we will discuss the type of coverage still available on the warranty if still applicable.
6. Consult with a professional home inspector.
I ALWAYS recommend you hire an accredited home inspection professional (one who carries Errors & Omissions insurance) to inspect the condition of the suite, common areas, and the overall building structure. I always recommend you take this step when buying a home to help protect you from any hard to see problems. A typical strata home inspection will take approximately 2.5 hours. You can be present during the inspection so you leave feeling like you know the ins and outs of the building.
If you are thinking about purchasing a Strata or have any questions please don’t hesitate to call or e-mail me anytime!
Century 21 In Town Realty