Before you buy a strata property, here are some standard due diligence steps that you and your REALTOR should complete. Make sure to clearly understand the differences between a strata freehold and freehold. Also the rules and bylaws will are often different in each building and can have a big impact on your ability to do what you want versus what the strata rules allow... read these!
Review Strata Council minutes for the past 12 months or more, along with by-laws, financial statements, Annual General Meeting minutes, and engineering reports that may have been completed. Look for past problems, previous repairs, special assessments, and upcoming expenditures.
Ensure a maintenance program is in place by talking to the strata property manager to determine whether the building has a solid preventative maintenance program in place.
Check the contingency fund since 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. Find out if the contingency fund is large enough to cover any upcoming expenses.
Review the Strata Property Condition Disclosure Statement which sellers are strongly encouraged to complete. It is a checklist about the property's condition. Buyers should carefully review it for any defects or potential problems. The statement can be legally incorporated into the Contract for Purchase and Sale.
Investigate the warranty program and builder’s background, whether the condo is new or resale. Your REALTOR® can find out what type of warranty the building carries, noting the limits and duration of coverage. S/he may also be able to help you obtain background information about the builder/developer of the project.
Hire a professional home inspector with proper accreditation and one who carries errors and omissions insurance to inspect the condition of the suite, common areas, and the overall building structure.
SOURCE: Greater Vancouver Real Estate Board
Many REALTORS® specialize in condominium sales.
No comments:
Post a Comment