Why the seller or listing agent should order the Condo Status certificate package

Condo status certificate should be available at listing time

What is the condo status certificate?
This is a package of information which contains extensive detail on the legal description, governance, policies and finances of a specific condominium corporation.  It is prepared by the Condominium Property Manager and is a snapshot at a certain point in time, meant to provide pertinent details to a potential buyer and their lawyer, concerning that condo and the unit being purchased.

What is the critical information contained in the package?
All of the information is important but the key things include the Declaration which details the legal description and governance rules under which the condo was created.  The budgets and status of the reserve fund are very important, as is whether there are any pending lawsuits or special assessments.  Condo rules and policies are critical, too.  Ie if an investor wants to rent out a unit, they will need to know what rules are in place. Ie short term rentals may be ruled out thus Airbnb or other short term rentals may be excluded.

What is the typical review process?
These are normally ordered from the Property Manager by the buyer’s lawyer, once a conditional sale has been agreed between buyer and seller.  The Property Manager has 10 business days to update/research and produce the package and make it available for buyer and lawyer review. Normally, this gets done in 5-7 days and some Property Managers also offer an expedited service for a higher fee.  Normal fee for the package is $100 and we have been quoted up to $200 for expedited service.  The lawyer pays this and the delivery charge and gets reimbursed by the buyer.

The lawyer then reviews the package and highlights any unusual circumstances for the buyer and answers any specific buyer questions.

What’s wrong with this process?

Lost buyers and time lag:
Often there can be information contained in the Status package that may cause a buyer to rethink their interest in the unit or the price they might be prepared to pay for it.  If this is so, the buyer may walk from the deal and the unit remains unsold.  Other interested buyers may have moved on by this point and be lost to the seller as prospective buyers, especially given the lag time between the agreement and buyer and lawyer review of the status package which is typically 7 or 8 days after agreement.

Buyer feels committed to purchase at time of agreement:
There is also a psychological tendency for buyers to want to complete a deal once it has been made and they often do not pay enough attention post agreement to details which may deter them from completing the deal.  For this same reason, there is a “cooling off” for new construction condo purchases (often sold in high pressure, if not timeshare manner) while buyers and hopefully, their lawyers review all the detailed information in the new construction or pre-construction condo.
Disclosure package. Unfortunately, in the case of resale condos, the seller pays a big price should the buyer get cold feet while awaiting the condo package.

Sale falling through delays seller plans and may leave a stigma:
When a conditional sale falls through, it listing gets put back on the active market but this takes some time and there may be a question mark or stigma attached to the listing.  Other buyers and their Realtor will be asking: why did that sale fall through?  Is there something wrong with the property? Something come up on inspection? Something in the condo docs?

Best practices recommendation:
The seller or listing agent should order and pay for the condo docs (currently, this done by the buyer’s lawyer or agent) , so they are available at time of listing for interested parties to peruse prior to making an offer to purchase.  If this is done the buyer, their agent and lawyer can clarify any details in the condo documents and make a better informed purchase decision.  This is guaranteed to help minimize the number of sales that are currently falling through (which are at an all-time high, 10-15% in our opinion) and potentially set up a multiple offer situation for a condo seller.

$100 seems like a pretty inexpensive way to do all the above, don’t you think?

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
613-435-4692 oasisrealty@rogers.com
Oasisrealtyottawa.com

If you have any comments on this post or any other real estate matter, feel free to indicate below!

 

 

Is a “shallow” well a concern when buying a country property?

would you know what this is ?

 

We had a very interesting experience when showing a country property recently and thought it a worthwhile note for those considering the purchase of a country property which is served by a private well and septic system.

We noticed the item shown in the photo and originally assumed it was the lid and riser for the septic system and in fact, the green lid is identical to those that can be found on a septic “riser”.  However, as we continued our tour of the property exterior, we noticed the septic tank area was behind the house.

With able assistance from Moe Rayyes of Canadian Water Inspection Services https://www.waterinspection.com/services  and with confirmation from the seller, we confirmed that the equipment in the photo was in fact, the cap for the “shallow” well system which serviced the property.

So what is a “shallow” well and how does it potentially affect a buyer?

A “drilled” well is by far, most common:

The listing for the property indicated that the property had a “drilled” well which is the most common type of well used to service country properties.  These are drilled to a depth and location that provides the best possible quality and quantity of water available to that particular property.

Shallow, dug and sand point wells: Pros and cons

Other types of wells are also out there and many provide reasonable and cost effective sources of water in areas with springs, high water tables and where drilled wells may be costly or otherwise problematic.  One such problem might be that the underlying aquifer does not have good quality water. ie too much salt or other mineral.

The potential disadvantage of the above type of wells is that by being closer to the surface, they are potentially more subject to bacterial contamination. (often one may see a UV light system to mitigate this potential issue) They can also be prone to water limitations during drier years, especially between May and October.  Sometimes these can even run dry and require tanker trucks full of water to replenish them until ground water levels get back to normal levels.

Should a buyer avoid a home with these less common water systems?

Many country homes are well serviced by such wells but in addition to some of the potential issues noted above; these type of systems make a property somewhat unique and generally speaking, unique features and systems may not be well understood by future buyers (and Realtors) and therefore, market value and marketability may not be as good as more standard homes.  We also know of several homeowners have been forced to truck in loads of water in dry summers to keep their well supplied for household requirements.

In the case of our buyers in this instance, they chose to pass on this property-even though it seemed to have very good value at the price.  In addition to the shallow well, it also had an original septic system which was 40+ years old which represented another risk and near term financial cost to our buyers.

As always, buyers should always get both a septic inspection and a well and water inspection from qualified professionals, (in addition to a general home inspection) when purchasing a country property.

If you are considering a purchase of a country property, we would be happy to you navigate the bumps and potholes that may be encountered along the way.

For additional information to consider before shopping for a country home, check out an archive article on our previous blog here:  https://www.oasisrealtyottawa.com/blogs/gord_mccormick/archive/2014/01/31/what-we-city-slickers-need-to-know-about-country-properties.aspx

 

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
613-435-4692  oasisrealty@rogers.com

Oasisrealtyottawa.com

Optimizing real estate fees for sellers

 

 

 

 

 

 

 

 

 

Why this may be the best time of year to buy new construction

Seasonal sales dip:
Ottawa real estate typically takes a pretty good dip from mid-November until at least mid-February and unit sales drop off 40 or 50% from the monthly average for the rest of the year.  It may however be the best time for many to buy a new construction home from a builder.

So why buy now?
Most builder deliveries are currently being booked for summer or early Fall 2017. For those with an existing home to sell, this means one would end up selling the existing property in peak season in April, May or June to facilitate a closing in the summer time.
This is a much better situation than those with January, February or March closings-as these buyers are faced with selling an existing property in the latter part of the year when buyers are fewer and many buyers prefer not to close in the winter months.

Prep to sell time improves:
One of the advantages of buying a new home is that there is lead time to prep and existing property and make sure it is in optimal condition for listing. Given the lead time between now and spring, there is some good “runway” for homeowners to do painting, organizing or minor repairs in advance of listing the property for sale.
It also gives more planning time with one’s Realtor, mortgage broker, stager and trades or service people.

First time buyer advantages:
First time buyers can also take advantage of having some lead time to continue saving for their purchase and also take advantage of RRSP contributions for both 2016 and 2017 tax years, before withdrawing those funds to use for the house purchase. Kind of like double dipping and is perfectly OK with the tax man, as long as the funds are deposited for at least 90 days.

758 Bunchberry Way , Ottawa

Findlay Creek quicker occupancy new construction MLS® 1035381
Findlay Creek quicker occupancy new construction MLS® 1035381 $608,562

*We have deals for new construction buyers (and sellers) !
First time buyers get a $1,000-$2,000 buyer bonus if they buy a new construction home with us.
Those with an existing home to sell can take advantage our super low full service MLS® listing fee of only 3.0% if they buy a new construction home with us before the end of February 2017 and quote this article. (*not intended to solicit those with existing representation agreements, some conditions apply)

We list a lot of homes for a major Ottawa builder and help them meet their sales objectives, so this knowledge and experience can benefit those shopping new construction.  It is one of our specialties!  So give us a call before you head to a builder sales centre and we can be your new home consultant!

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
613-435-4692 oasisrealty@rogers.com
www.oasisrealtyottawa.com
@oasisrealtyOTT
https://www.facebook.com/oasisrealtyottawa/