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Buying a condo: Danger signals to watch out for when reading geological minutes

With over 1.5 million British Columbia residents living in geological homes, it’s important for homebuyers to know what they’re doing.

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When it came to buying a home in geological real estate, some detective jobs were done.

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With over 1.5 million British Columbia residents living in geological homes, it’s important for homebuyers to know what they’re doing. By analyzing building reports and floor minutes, you can avoid future pitfalls such as special assessments and taxes. Here are some tips for reading the minutes of the hierarchy, documents to look for, and how to find warning signs.

Strata minutes

A two-year stratum council meeting is a standard requirement. Read from old to new and continue to aggregate the questions that arise. Minutes sometimes need to be read between lines.

Mint Home Team realtor Nicola Campbell, RE / Max Crest Realty, says he’s looking for recurring problems. “If something keeps happening, it’s the formation’s responsibility-like a window that needs to be crimped-it’s a warning sign. It’s important because we’re talking about getting water into the building. Why it’s a priority. Ask if it hasn’t been done. It’s a flag for me — it’s neglected maintenance. “

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David Fairbairn of Fairbairn Inspection Services states that he pays attention to euphemisms such as “water escape,” “water intrusion,” and “outflow.”

“Leaks have a negative meaning,” said Fairbairn. “Since I started 10 years ago, this word has really disappeared.

“One of the terms I pay attention to is the’circular line’,” he said. “This is the main pipe through the building that carries hot water to the riser. Often indicates that there is a pinhole leak in the piping throughout the building. If there is a problem with the recirculation line. Or it fails inside the building. Sometimes we use the exact jargon for what we’re doing, which means there’s a pinhole leak. “

Reserve fund

Healthy reserves can mean savings in the long run. Rule of thumb: At least $ 3,000 per unit. “If you have 300 units in your building and you have $ 100,000 in reserve, that layer is well underfunded,” Campbell said. “We hope the CRF (reserve) will be close to $ 1 million. These kinds of things are simple checkpoints, and if they don’t add up,” OK, we need to dig a little deeper. ” I have to say. “

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If the building is 20-30 years old, the roof, patio, and plumbing (if there is hot water in the center) usually need to be replaced or at least checked. “If you haven’t seen these things happening and you have little money in your reserves, it’s preparing for a big levy for the buyer.”

Proceedings

According to Campbell, unresolved complaints against specific owners can affect mortgage applications.

“Usually we see dissatisfied or past owners claiming a deductible for the insured insurance, but sometimes it’s more serious. You need to confirm with the bank. Financiers will certainly do so, so it’s important to make the right inquiries in advance in a world where unsubjected offers are on the rise. “

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Current bylaws and rules

From Alsatian breeding to earning additional AirBnB cash, future homeowners may have ideas for new pads that may violate current articles of incorporation and regulations. Request to see them first so you don’t get disappointed when you find that the hot yoga studios you plan to set up are redundant.

Depreciation report

Under state geological property laws and regulations, geographic enterprises with more than 5 units are required to obtain a depreciation report and renew it every three years. “If there is no report, it’s just the danger signal there,” Campbell said.

According to state regulations, depreciation reports should include inventory and valuation of building structures, exteriors, heating, electrical and plumbing systems, and general equipment. Individual units are not eligible. This includes Form B, which provides the hierarchy with information about current and future costs.

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“It’s not the end of everything,” Campbell said. “But at a minimum, you need to display either the depreciation report or the engineering report for the last decade. Without it, it would be a pretty big red flag.”

The report does not have to be based on physical inspection of the building, but can be based on records and anecdotal evidence. “My preference is to look at the physical inspection of these components. If the formation is actually on the ball, I spend money on preventive maintenance.”

“Not all depreciation reports are created the same,” says Fairbairn. “Often they show or don’t comment on some key systems, such as waterproofing of parkades and the condition of pipes. Buildings built over the last 30 years have had terrible plumbing problems. Experienced and usually breaks down within 15-20 years. Many of them will understand these issues. “

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Home inspectors are advised to check if the report was produced by a company with engineering experience. At BC, no engineering experience is required to create a depreciation report. The British Columbia website states that “Stratas can obtain depreciation reports from a variety of professionals,” and the person who creates the report must state their qualifications. “Many people writing these reports may have built ratings. Don’t assume they are engineering reports.”

Engineering report

Created by certified engineers, these inspections include a variety of inspections, including windows, doors, exterior walls including exterior materials and roofs, and structural parts.

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“For new construction, we want to make sure that the formation has inspected the envelope before the five-year warranty expires.”

In older buildings, formations often request reports on structural elements and other potential problem areas. “We usually ask for reports of buildings over the last five or ten years,” Campbell said.

“Many property management companies create a depreciation report that is in the file by default, but if you have an engineering report or a roof or exterior building report that doesn’t fall into that category, you’ll need to request it. There is part of our depreciation going through the minutes and seeing if there are any references to these reports. If they are missing, we will hunt it down. Return to the real estate management company for. “

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And a green light

Campbell points out that the geological council is made up of volunteers, who are usually one of the loudest owners. This may be a good thing. One of her clients helped save thousands of dollars in energy costs for his building. “He used his time to go to the supplier from every angle,” she said. “So there are council people who are worth their weight in gold and have come to save the building. Vocal people tend to be assets. They will say,” Everyone, we are. You need to do this, that’s why. ” And that’s a lot of work. Work they are not compensated for. “


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Buying a condo: Danger signals to watch out for when reading geological minutes

Source link Buying a condo: Danger signals to watch out for when reading geological minutes

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