What You Need to Know About Selling Your Strata Property!
Condos are continuing to gain momentum in Kelowna with more and more developers constructing the stratified complexes as the City continues to support a ‘build-up, not out’ mandate. If you own a condo and you’re considering selling the strata property, there are some things you may want to know to help ensure a smooth sale.
An offer may come with additional conditions
It’s not unusual for a buyer’s agent to submit an offer that includes some additional clauses. These typically relate to offers being conditional upon the client’s review and approval of strata documents and information. Which brings us to our next point...
You’ll have some extra responsibilities and paperwork
Your Realtor will likely want your help gathering up and providing information for potential buyers. According to the Strata Property Act, a Strata Corporation must make certain records (Strata Documents) available upon request to an owner, tenant, or a person that has written authorization from the owner (your Realtor for example). The Strata Corporation has a maximum of two weeks to comply unless you’re asking for copies of the bylaws and rules; those documents must be made available within one week.
Some of the documents that may be required include
- An Information Certificate
- Minutes of all strata meetings, including the results of any votes, for the last two years
- Strata Council bylaws and rules
- Budget and current financial statements
- Correspondence directed to the Strata owners by the Strata Council
- A list of Strata Council members and owners
- Building inspection or engineer’s reports
- Names of tenants and assignments of voting or other rights by landlords to tenants
- The registered strata plan and any strata plan amendments
- Resolutions dealing with changes to common property
Your Realtor will also need information about how parking stalls and storage lockers are distributed and designated, any proposals for special assessments and any other relevant documents for the strata property.
The Information Certificate
An Information Certificate (Form B under the Strata Property Act) must disclose the following information.
- Monthly strata fees
- Any special levies that have been approved
- Any amount by which the expenses of the Strata Corporation for the current fiscal year are expected to exceed the expenses budgeted for the year
- The amount in the contingency reserve fund
- Any amendments to bylaws
Your Strata Corporation may have a say in the sale too
Your Strata Corporation may have rules and bylaws that apply to the sale of units which can have a big impact on the value of your property and days on market.
When it comes to the listing of your property, rules may affect the placement of sales signs, lockboxes, and open houses. These typically aren’t a huge problem and your real estate agent should be able to work with the rules that are in place.
If your Strata Corporation has rules and bylaws that govern things like age restrictions, rental restrictions and pets, you may have a more difficult time selling your home. Each of these restrictions reduces your pool of potential buyers. Home buyers will also be wary of strata corporations that do not appear to be financially responsible or whose strata fees are too low or too high for the market.
Your real estate agent should be open with you about the limitations of your property and work with you to price the condo for the market conditions.