Jump to content

      



























Photo

How much are condo strata fees?


  • Please log in to reply
66 replies to this topic

#61 MarkoJ

MarkoJ
  • Member
  • 5,558 posts
  • LocationVictoria

Posted 09 January 2014 - 09:03 PM

Can you elaborate on this?

 

Let's say you are reading strata documents and you, the buyer, find out the building will need a new roof next year that will cost approximately $100,000 and there a 20 units.  The contingency fund is only $25,000 and the entire $100,000 will be raised via special assessment and the unit entitlement of the unit you are interested in is 1/20.  

 

You are a first time buyer and you cannot afford $5,000 out of pocket next year so you negotiate for $5,000, funded by the seller, to be held in trust by the seller's or buyer's lawyer to be released when the special assessment is due.  You could have provisions for the actual cost being below/above the $5,000.  

 

When contracts get complicated like above best to consult a lawyer to help with the specific wording.

 

Very few sellers would accept such an arrangement.  You are more likely to see it where a seller has had previous deals collapse over upcoming expenses.


Edited by MarkoJ, 09 January 2014 - 09:09 PM.

Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2022 | Fair Realty

www.MarkoJuras.com Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#62 Mike K.

Mike K.
  • Administrator
  • 74,797 posts

Posted 09 January 2014 - 09:33 PM

Thanks, Marko. That's a great piece of negotiating leverage.


Know it all.
Citified.ca is Victoria's most comprehensive research resource for new-build homes and commercial spaces.


#63 Nparker

Nparker
  • Member
  • 35,576 posts

Posted 09 January 2014 - 09:53 PM

In a previous property that I owned, there was a special levy raised to cover the costs of a potential litigation against the original builder, city etc. for damages resulting from premature building envelope failure. After quite a number of years the strata (owners) determined that the chance of success in such litigation would be minimal and it was decided to return the litigation funds back to the owners. In the intervening time I had sold my townhouse, but it had been written into the sales contract that any funds either won or returned from the litigation would come back to me as the owner who put up the money in the first place. The new owner had nothing to lose and in the end I got my money back. I am not sure how common such arrangements are, but it didn't seem to be especially complicated to make this provision in the sales contract or to get the buyer to agree to it.



#64 MarkoJ

MarkoJ
  • Member
  • 5,558 posts
  • LocationVictoria

Posted 10 January 2014 - 08:16 AM

In a previous property that I owned, there was a special levy raised to cover the costs of a potential litigation against the original builder, city etc. for damages resulting from premature building envelope failure. After quite a number of years the strata (owners) determined that the chance of success in such litigation would be minimal and it was decided to return the litigation funds back to the owners. In the intervening time I had sold my townhouse, but it had been written into the sales contract that any funds either won or returned from the litigation would come back to me as the owner who put up the money in the first place. The new owner had nothing to lose and in the end I got my money back. I am not sure how common such arrangements are, but it didn't seem to be especially complicated to make this provision in the sales contract or to get the buyer to agree to it.

 

A bit of a different scenario.  As you noted, the buyer had nothing to lose and neither did you.  It gets more complicated when the buyer has something to lose (upcoming expense), the seller is being asked to concede (pay for the upcoming expense) and there is uncertainty in regards to exactly how much the upcoming expense will be.


Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2022 | Fair Realty

www.MarkoJuras.com Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#65 Nparker

Nparker
  • Member
  • 35,576 posts

Posted 10 January 2014 - 08:53 AM

A bit of a different scenario...

Oh I realize that. I only relayed this story to show that all sorts of things can be built into a real estate transaction.



#66 Victoria Watcher

Victoria Watcher

    Old White Man On A Canadian Island

  • Member
  • 39,238 posts

Posted 24 January 2023 - 05:14 PM

More from this BP comedy writer/reporter.

 

 

 

 

 

Opinion: Penny-pinching Victoria stratas now forced to save for the future. Thank goodness

 

 

 

 

I have sat on strata councils for two of the apartments I have owned in the past and both experiences took years off of my life.

 

Both were dominated by senior citizens who had a lot of time to focus on this position because they were retired. These folks meant well, but I noticed that they spent most of their time worrying about who made too much noise and not enough planning for the future of the buildings.

 

 

 

https://www.vicnews....thank-goodness/

 

 

Why would you worry about the fate the building in 30 years when you were 75 years old?

 

I’ve heard this complaint from other people over the years as the older folks on the strata councils worked furiously to keep strata fees at a rock-bottom level by not spending on upkeep or the contingency fund.

 

That cheap attitude has led many stratas to find themselves unable to financially deal with problems that come up as their buildings age.

 

To be clear, it’s not just older folks (for the record, I’m 54 and will be a senior soon), but others who are more focused on low strata fees than on the future.

 

 

 

 

 

 

 

 

 

 

The guy writes like a 21-year-old.


Edited by Victoria Watcher, 24 January 2023 - 05:15 PM.

  • Sparky and lanforod like this

#67 aastra

aastra
  • Member
  • 18,572 posts

Posted 24 January 2023 - 06:29 PM

 

as the older folks on the strata councils worked furiously to keep strata fees at a rock-bottom level

 

It's a big problem, those rock-bottom strata fees. You hear people complaining about it all the time.


  • Victoria Watcher likes this

 



0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users