Sun
There are a number of professionals who can help you find the right condominium. Real estate agents, lawyers, developers and financial advisors all play an important role.
Because buying a condo is different from buying a house, it’s a good idea to enlist the help of professionals who specialize in condos.
A good real estate agent specializing in existing condominiums can help you save time and energy.
You can choose to deal with the vendor’s real estate representative (for existing condos), but you should really enlist one who will act only on your behalf. If you deal with the vendor’s agent, there should be no charge to you, as the agent will be paid a commission by the vendor.
An agent acting exclusively for you should not charge a fee for his/her services, as he/she normally shares in the vendor’s agent’s commission. Make sure you are clear on who is paying the real estate agent’s commission, and what your obligations are once you’ve signed an agreement.
When you meet with your agent, be specific about what features you’re looking for, location, and your budget. This will allow your agent to pre-screen condos on the market that are within your price range, in the neighbourhoods you want to live in, with the features and amenities you want.
A real estate agent can also help you make an offer to purchase once you’ve found the unit that’s right for you.
Remember for a re-sale unit purchase, make the offer conditional upon getting all corporation documents available to the purchaser under provincial legislation, including an estoppel or status certificate where available, or the financial statements and governing documents for the condo.. Making any sale conditional upon a satisfactory review of the condo’s financial condition and inspection by a qualified professional is also highly advisable.
Hiring a real estate lawyer who is knowledgeable about condos is the best way to ensure that your legal interests are protected. Your lawyer will help you by explaining all the documentation for the condo including the declaration, by-laws, rules and disclosure statements and will review your offer to purchase and the purchase and sale agreement. Your lawyer should be able to determine whether or not there are any pending legal actions against the condo that may have financial implications to the unit owners.
If your offer to purchase is accepted, your lawyer will be responsible for many of the closing arrangements.
Having your potential new home inspected by a professional is a wise idea. All too often, people make purchase decisions too quickly due to the desirability of the condo or in anticipation of competing offers.
This can leave buyers in a situation where they could face substantial costs after they take ownership of the unit due to construction-related defects that may have been detected by a pre-purchase inspection.
For an objective review of the condition of your unit and building, it is recommended that you find a qualified inspector in the yellow pages or on Web sites such as that supported by the Canadian Association of Home Inspectors at www.cahi.ca.
Ensure you can afford your mortgage and the monthly expenses you will face as a result of your purchase. Your bank manager or financial advisor can help you customize your mortgage to suit your financial goals and needs.
CMHC’s on-line Homebuying Step by Step Guide can also help you to determine what you can afford. You can find the guide on CMHC’s Web site at www.cmhc.ca
© The Vancouver Sun 2007