Ever since I started Real Estate in 2006, there was a ‘boom’ in Real Estate. Houses were being underpriced and overbid, inspections didn’t matter, nor did financing.
However, the same thing was happening to condominiums as well. When apartments and townhouses are not even half the price, there seems to be this misperception that buying ‘strata’ will be an easier process. Sure, the downpayment and the mortgage payments will be significantly easier, and maintenance of the property will be done by property caretakers.
This is condominium lifestlye.
However, to have a condominium lifestyle has its hoops to jump through. In this posting, I will be mainly talking about bylaws.
Since my Real Estate years in 2007, we have seen no subject offers on condominiums. Even though conditions of financing and inspection are the main subjects in a single family home, there is still a lot paperwork to be reviewed such as the bylaws.
Bylaws, in the simple definition, is a set of laws written by the strata corporation that governs the use of the strata property, which also includes its occupiers, whether it may be age, homeowners and tenants, and pets.
I had one family friend who ended up buying a condo in a hot market, only to fail that the condo they purchased had a bylaw that restricted children from occupying a unit. Unfortunately, the unit that they purchase had to be put to another use than their original intention.
Word of advice: Prior to moving into an apartment, you will be required to sign an aknowledgement to the property management and strata council that you (or your tenant) has reviewed the bylaws. So, reading the bylaws of a building should be the first document you should be reviewing as you make an offer. A difference in bylaws is just like ordering a vegeterian pizza only to find out that you received the meat lover’s.
Now lets stop talking about food for a second. Because the Vancouver market was so hot, it was no surprise that these issues showed up in our local court. These issues will probably be used for reference later on down the road if other places in Alberta and Ontario encounter the same Real Estate issues.
Some buyers have contested bylaws after purchasing their properties with these kind of issues:
-Age restrictions: it is a discriminitory action to restrict an occupant based on age
-Rental restrictions in combination with age restrictions: you cannot restrict a tenant from any age to occupy a rental unit.
-Pet restrictions: it is unenforceable to restrict a pet based on size.
These are just a few examples of how some buyers have challenged the bylaws, mainly because they failed to review the bylaws in the first place.
What was the response to these issues?
Well, nothing really. And the answer is simply, because these homeowners that purchased a property without reading the bylaws are not interested in paying the legal fees ($25,000 if not more) to bring these issues to BC Supreme Court to have them contested. Until then, bylaws are fully enforceable to the fullest extent of the strata corporation.
The options of apartments and townhomes are there. It always safe to assume that the the bylaws are adamant without room for exception. So, keep your options open. By knowing the bylaws prior to viewing a property is a safe start to condominium lifestyle.
For the residents of Sussex Square Apartments in West Richmond, it was one small victory in what will likely be a long, drawn-out legal battle.
This week, the B.C. Supreme Court rejected an application by Westsea Construction for a summary judgement on its bid to strike and dismiss several claims made by the “majority defendants” relating to breaching fiduciary duty, breaching a contract and negligence.
Facing eviction notices, the residents of Sussex Square sought out legal help instead as they rejected footing the bill for a massive multi-million dollar pay out for leaky-condo like damage to the three-storey condo building in which they live. Sussex Square comprises six such multi-family buildings, near Railway and Granville.
The Review was first contacted in 2010 by Bill and June Beckett who purchased a 99-year lease to their condo back in the 1988.
The couple live on a fixed income, and were stunned when they received a home repair bill of $47,000.
The Becketts and their neighbours contend that since Westsea Construction was in charge of maintaining the building, it should be held responsible for the damage that was caused over the years.
Aside from about $2.4 million in repairs already completed is another $7 million repair bill.
Lawyers for Westsea contend they fulfilled all of their obligations.
“They also suggest that a cause of the damage that needed to be repaired lay in the failure of the leaseholders to fulfill their obligation to maintain balconies and windows, thereby allowing water ingress,” this week’s judgement states.
“In an application of this kind I am not engaged in weighing evidence,” B.C. Supreme Court Justice David C. Harris wrote. “It should be noted, however, that the majority defendants have put before the court a preliminary expert report that tends to support their position that water damage has been caused by the failure properly to maintain what may be referred to as the building envelope (an obligation arguably falling on the lessors) over time. If that is accurate, it is to be expected that those failures occurred at times when some of the majority defendants did not have a leasehold interest. It should be noted, moreover, that the report also identifies a failure to maintain windows and balconies as one source of water ingress.”
Justice Harris ruled it would be “premature and unjust” to grant judgement to Westsea.
“These claims should be dealt with in the context of a full factual record where the trier of fact is in a proper position to resolve the legal issues relating to the legal implications of interests being transferred.”
[Last month, Mandarin Residences released its first phase for their new development in Central Richmond]
There has been a lot of mortgage news recently as the Big Banks fight for market share with record-low mortgage rates. In February, we covered how BMO Bank of Montreal started the mortgage wars by offering a 2.99% 5-year fixed rate mortgage. Other lenders followed suit, matching the 2.99% rate, but generally offering only a 4-year option. On March 29th, RBC Royal Bank signalled the end of this war by raising its rates by 50 basis points to 3.49%. It is expected that other lenders will follow RBC’s lead in order to shore up their profit margins.
As a consumer, given the current fixed and variable rates available, what should you do?
Since 1975 variable rate mortgages have proven to be more financially beneficial 82% of the time. That said, some experts are now saying that, given historically low rates, we may now be in that 18% period where it makes more financial sense to lock into a fixed rate mortgage. Remember, even with the higher 3.49% mortgage, the current rate is far below the historical average, which, since the 1950s, has generally remained north of 6%.
Some things you should consider when choosing between a fixed- and variable-rate mortgage:
Choose a variable-rate mortgage if:
Choose a fixed-rate mortgage if:
In the end, your personal situation is unique and you should speak to a professional mortgage specialist or broker to determine what the best option is for you; I would be happy to recommend one if you don’t already have someone in mind.
Posted on January 11, 2012 - 10:45am | View All News Releases
Last week, Aaron and Ray took a sneak peek at the newest development happening along River Road.
‘Parc Riviera’ will be the first of its kind in this certain area. For the longest time, this stretch along River Road (between Shell Rd. and No. 4 Rd.) has been home to a commuter vehicles between work sites. At most times, never really see any activity. In 2013, it will be a residential property in the works.
‘Parc Riviera’ will be occupying 20 acres of space which will take up the entire stretch between Shell and 4 Rd. At the same time, homeowners will be enjoying waterside properties without the waterfront Real Estate prices.
Phase 1 will be released in early November which will be the release of a 6 storey lowrise on the west side of the complex.
The Richmond Condo Guide team has been provided with all the layouts and prices for this complex. For any inquiries, feel free to contact us to receive your Parc Riviera information package.
Darren just listed this awesome 5th level unit in ‘Flo.’ Really a rare find as it is backed into the community garden with a good amount of private space as well as the patio opening into the garden space.
Also boasting an updgrade package of appliances, large rooms and floor-to-ceiling windows.
For more details, follow this link:
http://richmondcondoguide.com/recip.html/browse/details-20742278
Last week, Navi and Ray out the new presentation at ‘Saffron,’ another Lendingham McAllister project. Just one large block away from the city centre, Saffron boasts a nice elegant luxury in a four level lowrise community. Currently, Saffron is releasing its third phase.
The Richmond Condo Guide team was amongst a group of Realtors to receive an exclusive package to give to our clients looking to inquire about Saffron. Feel free to message us for more details.
We just wanted to introduce a new, FREE, online service provided by the Richmond Condo Guide. We also invite you to try it out and please, tell us what you think!
The Live Updates! feature on our website will track all the Real Estate activity in a complex of your choice. If you want to know what your neighbors’ property is selling for, the Live Updates! feature will keep you tracked on the progress as well as every other unit in the building. At the same time, if you have your eye on a certain property but waiting for that right time to buy, the Live Updates! feature will keep you updated on the Real Estate market in that complex.
With this subsription, your immediate updates will include:
