Buying a New Condo – read this first
Posted January 15th, 2008 in Real Estate, Sharing the Experience | 
CBC’s Wendy Mesley and Erica Johnson recently filmed a tv-show about purchasing new condos. It would have been nice if the Canadian Real Estate Association had completed this work for the benefit of consumers but, instead we can be thankful to the CBC.
The film is an insightful, first hand experience into the travails of purchasing a new condo. It’s worth watching! The importance of this piece for current and future new condo buyers should not be underestimated.
The full text and film are here:CONDO CRUNCH
Assisting condo buyers presents in itself, unique challenges. The shear volume of paper that constitutes the agreement is to many buyers, overwhelming. Please, do yourself a favour. Consult with a legal representative who is knowledgeable in condo agreements. Ensure you clearly understand the terms of your agreement and the implications.
[A further note: for buyers in B.C., not all the terms and legalese are relevant to our province.]
I agree that there is a lot of problems when speaking about condo agreements. Many Vancouver condos offer beautiful mountain and ocean views as well as access to the beaches, parks and waterfront. Buyers usually don`t think about the legality and are confused by all the terms of their agreements or implications. It is good to have someone relevant to help.
Great post, Larry. I wish that film had been around about a year and a half ago, though… It’s been a real learning experience since I bought into the market, and I probably could have benefited from this kind of info before.
Hi Jonathon,
Thanks for stopping by.
Re: Experience. I can’t give you a “global” we all tell our clients to do this. Think of your recent experience at Best Buy.
CBC did a great job of explaining many of the pitfalls. Unfortunately, in the past few years so people just bought into the auction fever, forgoing reason.
Adding to the story is what happens in a few years. Not getting the parking spot, bedroom, den or storage will I think , pale in comparison. I really wonder if the next phase is understood. The expected life span of most caulking sealant (the stuff around all the windows that keeps rain out) is from 3 to 15 years.
“Caulking selection – When buying, do not just choose the cheapest product. High-quality caulking is generally more expensive and with a long life expectancy. Cheaper caulking has a life expectancy of 3 to 10 years only. Resistance of caulk to water, weathering or shrinkage is also important in caulking selection.”
(Courtesy http://www.house-energy.com/Windows/Caulking.htm)
Get used to seeing blue. Assuming the developer used the high grade caulking it means that for many, the pain will begin just past the warranty period. Do I hear special assessment.
Hi Jay,
Thanks for stopping by.
It’s very difficult to have buyers listen to council when they have spent two days on a sidewalk waiting for the display suite to open. By that time I’m not certain that I wouldn’t be ready to ask ….
“where do I sign”!
I agree that condos do present some challenges, but if we take the time to explain many of the potential problems, and the procedures involved before it is time to write a contract, then it will not necessarily be overwhelming to clients. They will ask the right questions, and know from whom to get the answers they need.
Jordy,
Taking the time to explain the potential problems in that frenzied market often fell on deaf ears. Ergo the disclaimers or the “I told you so” clause.
I disagree with you about the buyers asking the right questions. Many were like gun slingers – buy first and talk later when it was too late.
Best advice to them all is talk to the lawyer and don’t for a second believe what the in house product demonstrator is telling you.
Yeah, sometimes they are not listening; and once they decide on place they may not change their mind. Even recommending legal advice will often fall on deaf ears.
Frankly, nowadays it is pretty risky to buy a new development. Since the economy is not as stable as it was before the recession period, I can’t see any advantages of making that choice. Offering his own contract of purchase and sale, the developer most of the time has a back-up for himself but not for the buyer. And speaking of the pricing, it’s cheaper to buy real estate in a building which is built already compare to the building which is under construction.