Write a Good Offer CheckList
Once you found the perfect condo you fell in love with, Let’s write a conditional offer with "Subjects to the sole benefit of the Buyer":
- Satisfactory financing terms. It allows you to take your contract of purchase and sale to your lender and make sure you everything is ok to start your mortgage in the terms and conditions you are satisfied with.
- Property inspection. A licensed inspector will go through the home in details and look for any defects whose cumulative cost of repair exceeds a certain amount and which may adversely affect the property's use or value. If there are outstanding repairs to be done, you can potentially ask the seller to fix them before closing.
- Review Property Disclosure statement and incorporate it into and fprm part of the contract of purchase and Sale. The “PDS” is fundamental in the seller disclosing any latent defect (fault in the property that could not have been discovered by a reasonably thorough inspection) and unrepared damaged. It also provides information that reasonably may adversely affect the use or value of the strata lot, including any by-law, item of repair or maintenance, special levy, judment or other liability, whether actual or potential.
- Review and approve all the strata documents of the building, including:
- Past two years of meeting minutes including A
nnual General meetings, Special General Meetings and Monthly meetings,
- Most recent Financial Statements and Annual budgets including all detailed incomes & Expenses,
- Rules and Bylaws of the building,
- Investigate about Special Levies/Assessments where money is collected from the strata lot owners for a specific purpose and for shared common expenses. A special levy must be approved by at least a 3/4 [“yes”] vote of the strata corporation owners.
Any special levy aproved before closing is payable by the seller.
If a special assessment has been propose
d by way of Notice of Special General Meeting or by way of Notice of Annual General Meeting, but not passed by strata Corporation before the Completion date, the Buyer may hold back the amount of the proposed assessment and either pay the amount to Strata Corporation or, if the proposed assessment is defeated, pay the amount to the seller.
- Review the current Title Search and make sure there are no restrictive covenants, statutory rights of way, easements, leases, caveats, Certificates of Pending, Litigation, tax notices, legal notations, or other notices or endorsements; or financial encumbrances, such as mortgages, strata liens, judgments, builder’s liens or other financial charges on the title of the property. You can make the Title search part of the contract.
- Review the most recent depreciation report, which include detailed engineering reports used to establish long term financial planning for common property and common within the strata’s corporation long budget.
- Review a recent Form B certificate signed by the property manager including:
- Monthly property maintenance fees,
- Any amount owed by the seller to the strata corporation,
- Any amendments to the bylaws not filled yet at the land tile office,
- Any agreements under which the owner of the strata lot described above takes responsibility for expenses relating to alterations to the strata lot, the common property or the common assets,
- Notice been given for any resolutions, requiring a 3/4 vote, 80% vote or unanimous vote or dealing with an amendment to the bylaws, that have not yet been voted on,
- Amount in the contingency reserve fund minus any expenditures which have already been approved but not yet taken from the fund,
- Any amount that the owner of the
strata lot described above is obligated to pay in the future for a special levy that has already been approved, any court proceeding,
- Arbitration or tribunal proceeding, and/or any judgments or orders against the strata corporation,
- Number of strata lots in the strata plan that are rented,
- Any parking stall(s) and Storage locker(s) allocated to the strata lot and their designation (Common property, Limited Common property, Long Term lease, Developer’s assignment).
SELLING PRICE / MARKET VALUE:
There are many factors affecting the fair market value of a property. The definition of Market Value by The USPAP “Uniform Standards of Professional Appraisal Practice” is:
The most probable price that a property should bring in a competitive open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus.
Market Comparison/Data Approach. We will analyze with you:
- All the recent homes sold within the building and comparable homes sold within the neighbourhood,
- Study of the Supply and Demand, Absorption rate, Inventory Level, Market condition in the specific area including current and past Sales to listings ratios,
- Rezoning, Neighbourhood revitalization, upcoming developments,
- Rental market including vacancy rate and capitalization rate.