Tips on Buying Stratas

If you are thinking about buying a condominium apartment or a townhome, you are likely concerned about problems some of the owners face with moisture issues. While not all condo’s and townhomes are plagued with water issues, you are encouraged to be cautious and complete a thorough investigation of any property before deciding on whether to buy.

It is important to remember that evidence of moisture are not immediately obvious when the property is first viewed. Even those with a trained eye often have to remove the outer cover of the building before they can be certain. In an attempt to put the brakes on condos that have sold without due disclosure, the Victoria Real Estate Board introduced a specialty form for condominiums called the Strata Property Disclosure Statement, which is a declaration made by the seller as to the homes condition.

A few tips you should consider before buying a strata:

* Work with your Realtor to acquire copies of the Strata minutes for at least the past 3 years, also those for the Special meetings and AGM. Gain also the financial statements, any engineering reports that may be underway or previously conducted and any other relevant information that your Realtor recommends.

* Allow sufficient time to consult with an accredited professional who will inspect a building before any decision to buy is finalized.

* Ask for a copy of the Property Disclosure Statement (PDS).

* Investigate the warranty program (if applicable) and the limits and responsibilities of the homeowner.

* Consult with the municipality and other professionals regarding building location and performance.

* If possible, investigate the background of the developers and / or builders of the structure.

When reviewing the strata minutes, look for any past problems, special expenditures or complaints or reports. Review the written maintenance program and look closely at the size of the contingency funds. It should be healthy or there should be an adequate explanation as to why it isn’t. Check to see if there are any upcoming capital expenditures which will put a drain on these funds or demand a special levy on you the new owner.

In general, check to see if the building has been well-maintained and managed.