Click here to download: Important Homework for Strata Buyers
Buying a strata property?
Recent changes to BC’s Strata Property Act make it more important than ever for buyers to read a strata’s documentation. Reviewing these documents should be a “subject to”, or condition of your contract to buy the property. Give yourself lots of time to read the documents, and if necessary, hire your notary or REALTOR® to help you go through them.
If you are using a mortgage to buy the property, you will very likely have to sign a statement for your lender that you have read these documents, and that you are satisfied that they meet the legal requirements. Your lender could refuse to fund your mortgage if you cannot assure it that the strata is meeting its legal requirements.
For example, does the contingency reserve fund meet legally required minimums? Does the depreciation report contain the things required by the Strata Property Act? Will your lender refuse to fund if there is no depreciation report at all?
Call us if you would like help reviewing these documents.
Visit our website for contact information.
February 5, 2014