Recently, a number of my clients buying homes in Spruce Grove, Stony Plain, Parkland County and the Edmonton region have agreed to accept Title Insurance in place of an RPR.  What do these terms mean?  What are the advantages and disadvantages? 

An RPR, or Real Property Report, is a survey of a property showing exact measurements of boundaries and the placement of all improvements or permanent structures (house, garage, shed, deck, fence, etc.), as well as the location of easements, utility rights of way, and so on.  The RPR is a legal document prepared by an Alberta Land Surveyor.  A certificate of municipal compliance attached to the RPR means that local rules have been followed regarding the current state of improvements.  That is, every structure on the property is the proper distance from the property boundaries or rights of way, permits are in place for things like attached decks of a certain height, and so on.

Real estate purchase contracts in Alberta require a seller to provide a buyer with a current RPR in conjunction with written proof of municipal compliance.  This could be problematic if the sellers have made improvements to the property, such as adding on to the home, putting up a fence, building a deck, and the like, and maybe they did some of these things without getting a municipal permit.  This would mean that the RPR they received when they purchased the property no longer reflects the current state of the property.  The sellers are then obliged to order a new RPR from an Alberta Land Surveyor (and this isn’t cheap or quick), or update the old one.  The sellers must also seek retroactive municipal compliance for neglected permits, sometimes a lengthy, complicated and difficult process – unless the buyer waives the requirement for the Real Property Report with municipal compliance.

Waiving that requirement may put the buyer at risk should it turn out that the improvements do not comply with municipal rules.  What if the detached garage was built too near the property line, or on top of the gas line?  What if the deck built on to the side of the house hangs over the neighbor’s property by a foot?  The new owner of the property could be on the hook for the considerable expense of making these things right, not to mention the hassle of tearing down perfectly good structures that just happen to be in the wrong place.

That’s where Title Insurance comes in.  Title Insurance in Alberta “guarantees” that improvements on the property comply with zoning bylaws and that there are no encroachments either from other properties or onto other properties.  Title insurance doesn’t magically make problems go away.  But, if bylaws have been broken or encroachments exist, title insurance (with some restrictions) will pay the cost of obtaining compliance or removing encroachments. 

Advantages? 

• Title insurance can be a good compromise in situations where a new RPR would uncover a problem (for example, no permit for an attached and covered deck) whose solution would be much more costly or invasive or time-consuming than either seller or buyer wants to undertake.
• It can also be an excellent hedge against such things as mortgage or title fraud, builder’s liens, or hidden deficiencies, such as basements developed without permits, underground storage, and the like.
• Title insurance usually costs considerably less and is often easier and faster to obtain than a new RPR.

However… there are some disadvantages that buyers in particular should be aware of:

• Property buyers in Alberta should know that the concept of title insurance originated in the US where citizens do not enjoy the same level of protection that the Alberta system of land titles registration provides.  An up-to-date RPR with municipal compliance is still the best protection for a buyer, as it ensures that the property meets all current bylaws, regulations and the like.
• Title insurance does not reveal underlying issues or correct structural deficits.   It merely provides the financial means for the future to clean them up should they be discovered and should there be an insistence that they be made right.  Note also that title insurance, even if obtainable, does not absolve sellers from the legal obligation to disclose all known defects about their property.
• The usual arrangement when title insurance is offered in place of an RPR is that the buyer purchases the insurance and is reimbursed by the seller, as per the purchase contract.  The new owner of the property is then the holder and beneficiary of the insurance policy for as long as he owns the property.  But… when it is time for him to sell the property, he must either pay for a new RPR after correcting problems, or offer and pay for the same deal he accepted, hoping that the new owner will agree to title insurance – not a foregone conclusion.

So, as a buyer, what is your best course of action?  Given the above, it might seem that you should always insist on a new RPR.   Sometimes that is the right thing to do.  But there are many situations, especially in cases where “correcting a problem” may be worse than living with the status quo, and where time is a limiting factor, when accepting title insurance in place of a missing RPR or in addition to an outdated RPR is the way to go.  Your realtor and lawyer are in the best position to help you decide.

For more information and detailed examples:

Real Estate Council of Alberta (RECA) Information Bulletin:  Title Insurance

Real Estate Council of Alberta (RECA) Information Bulletin:  Real Property Reports

(The above article is not intended to cover all aspects of the topic of RPRs and title insurance.  Buyers and sellers are urged to seek detailed expert advice relevant to their personal situations.)

Questions or comments about this or other real estate matters?  I’m here to help!  Call or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

A guest blog article from one of my clients who refers to herself as Ms. Cranky Pants:

So, Barry took me to see your house in the region of Spruce Grove, Stony Plain, Parkland County, and Edmonton, and I just wanted to mention the things that made me go Ewww.

Odors

I know you think all those little room deodorizer thingies will hide the fact that you’re a smoker, but you can’t fool me.  I wish I didn’t know that you had fried fish with onions and garlic for dinner.  And seriously people, do you ever clean that stinky litter box?  Open a window, for crying out loud!

Dirt

Disgusting grime in the tub, sticky spots on the kitchen counter, dirty dishes in the sink, mystery stains on the carpet, something brown and nasty in the corners…  Yuck!  I’d hate to have the CSI folks go through here with their ultra-violet lights.  I’m not a clean freak but no way do I want to wallow in anybody else’s crud, thank you.  Soap and water and elbow grease are cheap – get busy!

Stuff everywhere

When I view homes, I try to imagine living in the rooms with all my belongings in place.  Kind of hard to do when your junk is clogging up the space, making the place feel smaller than it really is.  Plus, it’s a real turn-off to see personal things like your toothbrush, razor and soggy towels cluttering up the bathroom, for example.  You need to get rid of at least half the stuff in your house — and I don’t mean hide it in the closets or the garage because I’m looking in there!  Here’s a tip:  Visualize a nice hotel room before you move in and unpack – sparkly clean, neat and tidy, room to move around.  That’s what your home should look like for showings.

Damp basement and water stains

Oh boy, is this one a red flag.  If I can see the results of water leakage, I just know I’d be buying a boatload of trouble to take on this baby.  Maybe you’ve got a bad foundation, but it’s more likely that water from spring runoff or summer rains is getting in because 1) your landscaping and grading isn’t sloped adequately away from the house; 2) your eavestroughing needs some work, with rain gutters cleaned out and downspouts aimed well away from the house; 3) your underground drains are clogged; or 4) your sump pump, if you have one, isn’t working properly.

Evident lack of maintenance or upgrading, or unfinished or poorly done reno projects

Yeah, I know your house isn’t brand new so you don’t have all the latest fixtures and decorative doo-dads.  I don’t mind a house that’s used.  What I object to is a house that’s used up.  If you’ve lived in your house for longer than 10 years, then it’s time to fix it up.  That could mean repairing broken windows, tightening loose hinges, or replacing cabinet handles, switches and plug-ins, faucets and shower heads.  It might also mean fresh paint inside and outside (neutral colors, please!).  Maybe what’s needed is a new roof, new furnace and hot water heater, new flooring or new appliances.  It could even mean a professional renovation of kitchen and bathrooms.  Notice I said professional renovation.  Do it yourself only if you have the skills and tools to do it right.  Oh, and don’t wait till just before it’s time to sell to do those things.  Maintain and renovate on a yearly basis so you get to enjoy your investment.

Weird decorating

I counted 5 different wallpaper patterns and 4 different types of carpet and lino just on the main level, but the real clincher was the purple living room, black bedroom and the mustard yellow dining room with its psychedelic wall mural!  This may be what you like to live with, but I want my house to be a frame for my life, not a Halloween horror show.

Lack of light

Hard to see if there are great features in this house because it’s like a cave in here.  I respect people trying to save money and energy, but up the wattage on the light bulbs so prospective buyers can actually see what you’re selling.  Open those drapes and blinds.  Trim the shrubbery from in front of the windows.  Clean those dirty, foggy windows.

Poor curb appeal and unattractive yard

I don’t know about you but I make a little effort when I show my face in public.  Same thing applies to houses.  Like it or not, first impressions count.  If your front door is askew and the paint’s peeling, if your driveway and sidewalks are cracked, plants overgrown, lawn brown and patchy, and there’s trash everywhere, this tells me you don’t care.  So why should I even bother to enter the front door if what I’ll see on the inside is more of the same?  Show a little pride, folks!

Pets on the loose

Hey, I love animals but your big snarly pooch scared the whatsits out of me.  I came to see your house, not get mauled by Cujo.

Price too high

Of course I’d like a bargain, but I’m willing to pay what’s fair for a decent house.  If your house needs a little work… well, I can forgive quite a lot if the price is right.  But there’s plenty I won’t pay for.  I don’t care that you spent $20,000 on a fancy new hot tub and deck, or that you owe too much on your mortgage to reduce the price to what’s reasonable, or that you have to have a certain amount so you can move into a bigger and more expensive house.  Price your house right based on factors such as its location, age, condition, size and what similar homes in your area have sold for, and I just might make you an offer.

Barry has some great articles in this blog on home staging and getting your house ready to sell.  Take a look at these:

Be Your Own Home Stager

Thinking of Selling Your Home in Spruce Grove, Stony Plain or Parkland County? 

Home Staging Starts With De-cluttering

Barry can help you find a great house, or sell your current one.  Call or text him at 780-910-9669, email him at barry@barryt.ca, or contact him here. 

Looking for a contractor to tackle the renovation of your Spruce Grove, Stony Plain, Parkland County or Edmonton area home?  We often hear news reports of consumers who have been ripped off by unethical contractors, or left with a huge mess by incompetent and unlicensed workers.  How do you go about finding somebody who will do a great job for a reasonable price?

My assistant recently had two bathrooms in her home upgraded by a contractor.  “We put off the work for far too long because we didn’t know who could do the job for us and were afraid to just pick somebody at random.  Luckily, a friend of mine who is very particular about how her home looks had just had her bathroom renovated.  She recommended we try the fellow she’d used, and we were thrilled with the results.”  Getting a recommendation from someone you know, and seeing the contractor’s work first-hand is by far the best way to hire a contractor for similar work.  But what if you don’t know anyone who has had recent work done?

Two excellent sources of advice for finding a contractor, dealing with the contract, estimates, permits, overseeing the work, payment and everything else that goes with a renovation are the following:

• Home Renovations Consumer Tipsheet from Service Alberta:   Contents of this 8-page sheet written in plain language include:

Get written estimates

Check references

Warning flags

Hire qualified tradespeople

Signing the contract

Working with prepaid contractors

Also included is a section explaining what to do if you run into problems, along with a handy contract checklist, and where to find more information.

• Hiring a Contractor – Fact sheet from Canadian Mortgage and Housing Corporation (CMHC).  Topics include:

Who do you hire?

Finding and choosing a contractor [excellent list of questions to ask]

Getting estimates or proposals

Get it in writing

The contract

Completion certificate

Holdbacks

Working with your contractor

Consumer protection laws

About insurance

Checklist – Hiring a contractor

Scroll down to the bottom of the webpage for even more resources, including a Sample Renovation Contract and a video on Hiring a Contractor.

The Better Business Bureau is also a good source of information.  Take a look at their article “Quick Tips for Hiring a Home Contractor – Do You Know the Red Flags?” and use their database to check out contractors.

Comments or questions about this article?  Call or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

Whether you are seriously in the market to buy a house in Spruce Grove, Stony Plain, Parkland County or the Edmonton region, or just like to look at pictures and dream, you might find an article about the HGTV show House Hunters informative and entertaining.  

“HGTV show inspires tips for real-life seekers” (published in the July 28, 2012 edition of the Edmonton Journal, and other newspapers, as well as online) is a tongue-in-cheek commentary by columnist Mary Beth Breckenridge about her addiction to the TV show House Hunters, in which she notes that buyers seem to toss their common sense when viewing property for sale.  Here is what she advises would-be home purchasers:

“-Granite countertops do not make a kitchen. Yes, they’re lovely, but maybe you should open the drawers to make sure they don’t require the kind of force that dislocates elbows, and turn on the faucet to verify that the water flows in more than a trickle.  Oh, and by the way, there are other kinds of countertops. Very nice ones, in fact.

– Location, location, location. It didn’t become a real-estate cliché without good reason. You can replace carpet and reconfigure rooms, but that freeway noise? You’re stuck with it.

– For the love of God, price a couple of cans of paint before you reject a house over the blue in the baby’s room.

– You might want to think twice about going right from an efficiency apartment to a McMansion. Furniture costs money, you know.

– Five bedrooms for two people? Really?

– Two-storey great rooms look dramatic, but check the heating bills if you live in Minnesota.

– Don’t give the yard short shrift. It takes hours to knock down a wall but years to grow a tree.

– After a few months of two-hour commutes, you’re going to kick yourself for choosing the sparkly new Colonial on the outer reaches of exurbia over the fixer-upper 10 minutes from your job. Even if it does have hardwood floors and stainless steel appliances.

– And remember what I said about countertops? Ditto appliances.” 

So, what do you go for when you’re searching for new digs?  Are you one of those people who falls for something shiny, or can you look beyond what’s pretty (or, for that matter, what’s not so pretty) to find what’s practical?  Home stagers exist for a reason, and it’s the wise buyer who is able to resist their tricks!  Learn to distinguish what you absolutely must have from what would be nice to have.  Separate things that can be changed (paint color, counter tops, appliances, other decorative items) from those that can’t (street on which the home is built, its orientation on the property, other permanent construction details).  Do this and you’re sure to find the right home that you’ll be happy to live in for a long time.   (See also my blog article from April 5, 2012 entitled “That Perfect House”.)

Still a little confused about what to look for?  Let me help you.  Call or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

Do you have a HELOC (Home Equity Line of Credit) against your home in Spruce Grove, Stony Plain, Parkland County, the Edmonton region or elsewhere?  This valuable lending tool has many practical uses:

• Investment borrowing
• Borrowing for education
• Rental property investment
• Home improvements
• Debt consolidation
• Alternative to higher-rate loans
• Down payment source for a second property
• Emergency backup fund

At the moment a HELOC can allow homeowners to borrow up to 80% of their home’s appraised value at very reasonable interest rates.  But that is about to change within as short a time period as 3 weeks.

Fran Jenkins, Mortgage Specialist at ATB Financial in Spruce Grove, advises that the OSFI (Office of the Superintendent of Financial Institutions in Canada) has set out new lending guidelines for all federally regulated lenders to limit new HELOCs to 65% Loan-to-Value.  Banks have until the end of their fiscal years to comply, and for most banks in Canada, that means October 31, 2012 (up to March 31, 2013 for other institutions such as credit unions).  Expect to see most banks moving on this well before the official deadline.

While OSFI says that existing HELOC holders will be grandfathered, you may want to check with your bank to ensure that your HELOC is set up the way you want it, especially if you need a HELOC equaling 66% to 80% of your home’s value.

The new rules also affect readvanceable mortgages.

For more details on the new mortgage rules, read the article “OSFI Toughens Mortgage Underwriting” from Canadian Mortgage Trends.com.

Comments or questions about this article?  Call or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

How dry is your Spruce Grove, Stony Plain, Parkland County or Edmonton area basement?  With one of the wettest summers on record upon us, you might be one of those unfortunate homeowners dealing with a flooded basement.  Whether you’re in the process of cleaning up, or you’ve been spared so far and want to stay that way, check out the following for some good advice:

Preventing the Problem

“Steps you can take to prevent basement flooding”, published in the Saturday, July 21, 2012 edition of the Edmonton Journal.

“The Homeowner’s Guide to Flood Prevention”, produced by the City of Edmonton.

“Before Flooding”, concise and comprehensive factsheet from Alberta Municipal Affairs, Emergency Management Alberta.

“Avoiding Basement Flooding”, factsheet from CMHC.

“Protect Your Home From Basement Flooding”, from the Institute for Catastrophic Loss Reduction  (includes a handy score sheet to determine your risk for flooding).  View their video “Reduce basement flooding”.

Check out also “City of Spruce Grove Homeowner’s Guide to Lot Grading”  and Spruce Grove’s “Residential Lot Grading and Maintenance” information sheet and regulations.

What to Do After a Flood

“Cleaning your home after a flood”, Alberta Health Services.

“Flood Disaster: What to do before, during and after flooding”, excellent and detailed booklet from Alberta Municipal Affairs, Emergency Management Alberta.

“After the Flood:  A Homeowner’s Checklist”, factsheet from CMHC.

“Cleaning Up Your House After a Flood”, CMHC free download.

“A Guide to Fixing Your Damp Basement”, available from CMHC for $9.95.

“Cleaning Up After the Flood: a guide for homeowners”, Saskatchewan Ministry of Health.

City of Spruce Grove Disaster Recovery Program 

See also my blog article entitled “Spring Run-off”, posted April 10, 2012.

Comments or questions about this article?  Call or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

If you have guests and family members coming to visit this summer, putting them up for the night can sometimes be a hassle.  But now visitors to Spruce Grove, Stony Plain and Parkland County have a new and unique lodging option.

Welcome to “Rare Gem”, a bed and breakfast that offers much more than just a bed for the night plus breakfast! 

Located in a fully restored 1910 heritage home just ½ block from Stony Plain’s historic Main Street, Rare Gem pampers its guests in Victorian elegance and charm, along with every modern comfort and convenience.  From Rare Gem’s marketing brochure:

“Boutique accommodations, delicious breakfasts and hospitality of the finest character are yours to enjoy.  Complimentary welcome, tuck-in and wake-up trays are trademarks of our service.

“Guests will choose from our spacious second-floor executive rooms complete with ensuites or private bath.  The finest of linens, fireplaces, flat-screen cable televisions, wireless-internet access, air conditioning, fine appointments, privacy locks, bathrobes, toiletries and off-street parking assure your needs are met.

“The upper parlour, complete with an outdoor balcony, is yours to enjoy.

“All breakfasts are home-prepared, flavourful and nutritious using seasonal and local ingredients when available.  Special diets and strong allergies may be accommodated with prior notice.

“Breakfasts are served in the home’s formal dining room, the upper parlour, or weather permitting, on our covered veranda or in the private courtyard – the choice is yours!

Rare Gem, a smoke-free, adult-oriented residence, offers 3 guest rooms that can house 2 persons each, with a choice of twin, queen or king beds.  Prices range from $105 to $135 per night.

Guest Rooms

Stairway

Upper Hallway

Upper Parlour

Living Room

Dining Room

Veranda

Private Courtyard

But this B & B isn’t just for out-of-towners:

“Rare Gem also opens its doors to family, social and business private functions.  Call or make an appointment so that we may discuss your breakfast meeting, high-tea luncheon, celebratory reception, wine-tasting gathering, or a discreet or robust dinner.  We offer personalized menu planning, high-quality service, and an enchanting atmosphere both indoors and in our courtyard.  You will find us accommodating, delicious and attentive to every detail.”

Up to 80 people can be accommodated for a wide range of special events.  Think family reunions, wedding receptions, business retreats, meetings and celebrations of every description.

Want more information?  Genial hosts Shelley and Robert Twerdoclib are happy to oblige.  Contact details:

Rare Gem is located at 4915 – 53 Avenue, Stony Plain, Alberta T7Z 1C5

Phone:  780-963-7431     Fax: 780-963-9984

Email:  raregem.stonyplain@gmail.com

Website:  www.bbcanada.com/raregem

Comments or questions about this article?  Call or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

One of Edmonton’s nicknames is River City, and the River Valley Alliance is working hard to make that much more than a catchy phrase.

Haven’t heard of the River Valley Alliance?  If you are someone who enjoys spending time outdoors and who is concerned about preserving the natural beauty around us for generations to come, this is something you’ll want to learn about and get involved in.

The goal of the River Valley Alliance since 1996 has been to “Preserve, Protect and Enhance” the valley of the North Saskatchewan River.  Seven municipalities within the valley (Town of Devon, Parkland County, Leduc County, City of Edmonton, Strathcona County, Sturgeon County and City of Fort Saskatchewan) collaborate to create a continuous river valley park system connecting the 22+ parks and numerous trails in Alberta’s Capital Region, stretching all the way from Devon to Fort Saskatchewan.  The end product is a continuous span of 88 km, longer than any other urban park in North America. At 18,000 acres, it is also one of the largest, making it 22 times bigger than Central Park in New York City. 

The official River Valley Alliance brochure points out that “the River Valley is a defining symbol of Alberta’s Capital Region, a green corridor along the North Saskatchewan River that offers:

• a preserve for wildlife and native vegetation
• an escape to nature for residents and visitors
• opportunities for year round outdoor recreation, family fun and community events
• a place to connect to others and with yourself”

RVA’s main role is to coordinate planning and development along the river valley and to access financial and public support for the project.

RVA’s brochure also suggests several ways each of us can get involved in this very worthy undertaking:

“Visit the river valley – share the experience with family and friends

Show your pride – tell people about this unique feature and RVA’s work

Participate – share your river valley stories, photos and videos

Donate – donate to RVA’s work through Canada Helps, corporate giving, or in-kind donations

Connect – contact us or subscribe online to RVA’s e-newsletter:

River Valley Alliance, P.O. Box 2359, Edmonton AB T5J 2R7

contact@rivervalley.ab.ca

www.rivervalley.ab.ca”

Thanks to the fine folks at River Valley Alliance for allowing me to quote from their brochure and use their content! 

Comments or questions about this article or about real estate near the river?  Call or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

Every once in a while, a home comes on the market that is so outstanding, it deserves to be highlighted in a special way.  If you are in the market for an acreage home in the Spruce Grove-Stony Plain-Edmonton region, this incredible property needs to be seen to be appreciated.44, 53305 Range Road 273, Parkland County is a 4-bedroom (2 up, 2 down), 1,991 sq ft custom-designed bungalow (built in 2006) situated on a 1.14 acre lot in the prestigious subdivision of Atim Creek Springs 12 minutes west of Edmonton.  Adjectives like stunning, gorgeous, breathtaking, incredible sound like clichés but in this case every one of them fits!  There is nothing lacking in either the superb finishing of the home or the spectacular landscaping of the park-like lot. 

Here are just a few of the features of this home that make it extraordinary:

Kitchen and Dining Areas:

Beautiful kitchen with tons of space, pot drawers, pecan-colored cabinets, glass-doored pantry, granite counter tops, breakfast bar

Stainless steel appliances

Dual-fuel stove, gas cooktop, gas convection oven

Beautiful backsplash, under-cabinet lighting, subtle above-cabinet lighting

Garden door to deck from dinette; 3-zone audio system in kitchen, basement and deck

3-sided gas fireplace separates dinette from living room

Intimate alcove formal dining room can seat 12-14 people; hardwood floor

Master Suite:

Huge main floor master bedroom (more than 18’x13’)

Large walk-in closet

Luxurious master bath has 2-sided gas fireplace, Bain Ultra Air Deep 2-person bathtub, rain shower, 4-piece body spray and hand wand in shower, his/hers sinks

Flooring, Finishing, Comfort Features

Extensive use of ceramic tile, hardwood

Beautiful earth-tone colors throughout

11’ ceilings in entryway and living room, 9’ everywhere else including basement

In-floor heating in main floor ceramic tiles and throughout basement

Air conditioning

Security system

Low E windows and screens

Low-flow dual flush toilets in all 3 bathrooms

Main floor laundry room with upper cabinets, full-size sink with spray

Bench and large coat closet in mudroom access off garage

3700 gallon cistern; septic system to code

Easy Living Features in Basement:

Entertainment/media room (18’x30’) with grand entertainment unit and surround sound, plus games room or exercise room

Large wet bar with full-size fridge and sink, under-counter lighting

Basement bath has private shower with rain shower and hand wand, 2 sinks, ample storage in 2 banks of drawers and 2 very large upper mirrored cabinets

2 large bedrooms

Huge utility room with craft table and storage

 Yard, Lot, Exterior Amenities:

Very private, beautifully landscaped natural treed lot with native and planted evergreen and seedlings

Loaded with trees, shrubs, perennials

Lovely greenhouse, raised herb garden

Stone walkways, fire pit, large stone patio, wood deck with maintenance-free decking

6-person hot tub and pergola

Huge shed and ½ shed for storage

Exposed aggregate walkway to front entry and stairs

4000 sq ft asphalt driveway and extra long RV parking

Fully fenced chain link with double gate for vehicle access to back yard

Cedar and lattice fence on neighbor side

Garage:

1200 sq ft insulated triple attached garage with 2 large windows for lots of light

Natural gas to garage; hot and cold water taps and floor drain

You’ll have difficult decisions to make about where to spend your time.  Do you whip up stellar meals in the gourmet’s delight kitchen?  Host elegant dinner parties in the formal dining room?  Have your friends over to watch sporting events and enjoy the hospitality of the wet bar in the magnificent downstairs entertainment room?  Soak up the beauty and serenity of the glorious backyard from the deck or patio, or in the hot tub under the pergola?  This home truly has everything you could ask for – the perfect place for family living and entertaining.

I would love to show you this wonderful home, or any other property in the Spruce Grove, Stony Plain, Parkland County or Edmonton region.  Please call or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

What is a condo?  

Many people hearing the word “condominium” think of an owned unit in a high-rise apartment building.  But a condo can be any type of dwelling:  an apartment in a low-rise building, a townhouse, freestanding house, duplex and so on.  What makes a condo different from a “freehold” house is that you own your unit only to the walls, and you share ownership of the land, rest of the building and common areas.  This sharing of ownership is also a sharing of costs with other members of your condo association.  Decisions about the property are made by a board of directors or a property management company.

How do you decide if owning and living in a condo is for you? 

Living in any kind of dwelling comes with trade-offs and compromises!  Consider these advantages and disadvantages of condo living over owning a freehold home:

Pros:

• Kiss your snow shovel and lawn mower goodbye!:  Monthly condo fees cover the cost of outside maintenance, such as snow shoveling, lawn mowing, eavestrough cleaning, possibly even exterior window washing. 
• Cost sharing:  Some of your condo fees go into a reserve fund to be used for major repairs such as re-shingling the roof or replacing windows.  If more money is needed, special assessments pool funds from all condo owners so the cost per owner is usually much less than for a freehold home.
• Lifestyle:  Condos are ideal for people who prefer to live on one level or in a small home, who enjoy socializing with their neighbours, who like living in prime urban locations, who appreciate the convenience of being able to leave home for days at a time without having to worry about yard maintenance, security and the like.  Many condo developments also create communities of like-minded people, such as young professionals or seniors, resulting in increased opportunities for recreation, socializing and support.
• Expression of personal taste:  Freedom to decorate the interior of your unit as you wish.
• Amenities:  Does your 1200 square foot bungalow have a swimming pool, exercise room, theater room, party room and guest suite?  Didn’t think so!
• Price:  Condos are generally cheaper to buy than a freehold home.  Lower property taxes too!
• Location:  Condos are often located “where the action is” – in the heart of a major city and close to facilities and services such as restaurants, medical facilities, artistic and recreational activities, public transportation and so on.
• Security:  With close neighbours all around, plus secure entrances and even doormen in some complexes, you may feel safer than in a self-contained house.  If your neighbours are owner occupants, they may be more likely to take care of their property, and to watch out for yours. 

Cons: 

• Price:  Condos may be cheaper to buy than freehold homes, and you may be able to get more house for the money BUT, not necessarily!  Research and do your homework!
• Investment value:  The value of condos tends not to rise as much or as quickly over time as the value of freehold homes, and improvements made to a condo may not give the same return on investment as in a regular home.
• Condo fees:   A mortgage may eventually be paid off, but you’ll be paying monthly condo fees, which can be substantial and can always be expected to increase, for as long as you live in your condo.  This is more onerous if you don’t use amenities like a swimming pool or party room that your fees are subsidizing.
• Special assessments, or “everybody pays”:   If the condo board needs money to pay for almost anything beyond what’s been budgeted, things like unforeseen utility bill increases or emergency repairs, all condo owners will be on the hook for a share of the pain, with no choice but to pay. This includes paying for damages caused by other condo owners or their guests, or legal fees if the condo association is involved in a lawsuit.
• Management:  Condo developments are usually managed by volunteer boards whose members may or may not have the experience and expertise to make informed decisions, or by property management companies whose first priority may be money rather than the welfare of residents.  Poor management could result in neglected maintenance, arbitrary special assessments and more, leading to costly situations for residents which might include a decrease in the resale value of their condos. 
• Rules and bylaws:  Most condo associations have many, and the wise prospective buyer will study them thoroughly before committing to the purchase.  For example, a condo development may decree that in-suite washing machines cannot be used before 8 AM or after 10 PM.  Rules relating to parking, noise, pets, garbage disposal, outdoor barbecues, even overnight guests are common.  Something you may want to ask about:  Are amenities, such as a preferred parking stall, transferable?
• Community living:  Sharing walls, ceilings and floors with other residents, especially if sound-proofing is less than optimal and neighbours are noisy, can be stressful.  Condo living also means less privacy and possibly less safety when it comes to things like fires and the like.
• Parking:  Often limited and probably not adjacent to one’s unit.
• Lack of green space or limited outdoor living space:  Condos in downtown locations in particular are unlikely to be surrounded by lawns and gardens.  Patios and balconies, if they exist at all, are typically small.
• Limited storage space
• Lack of control:  Within your own unit, you can usually repaint the walls, change the cupboards, flooring or appliances, but beyond your walls, you may not have a choice in things like lobby décor, landscaping, window replacement and the like.  Worse, the timetable and budget for such things will not depend on your convenience or approval.
• Property insurance:  Condo owners may require special insurance to protect not just their personal investment but also their share of the common property in the condo development.  Ask your insurance agent about “loss assessment”.  Also, take the time to read carefully what’s included and covered in the condo corporation policy; that way, you’ll know what you need to include in your personal policy.

Do the benefits of condo living outweigh the drawbacks? 

Here’s some more advice if you are thinking of buying a condo:

•  Talk to the residents:  Meet the people who will be your neighbours.  Ask them what they feel is good and bad about the condo development and its management.
• Consult the experts:  Look for a realtor and lawyer who have experience in dealing with the condo market.
• Read provincial condo legislation, such as the Province of Alberta Condominium Property Act. 
• Inform yourself about types of ownership:  Visit HomeBuyer.ca for a look at the different types of condo ownership.     See also Buying a Condo from the Canadian Bar Association.
• Compare condo fees:  Find out what the fees cover.  You may find that the condo development with the lowest fees is not necessarily the best choice; higher fees, for example, might be covering things like utilities, cable and internet. 
• Study the condo bylaws, rules and regulations:  You’ll want to know what you can and cannot do – and what your neighbours are allowed to do as well.  Can you have pets?  run a business from your unit?  and so on.  Take note also of penalties imposed for breaking the rules.
• Find out about the occupancy rules:  Will your neighbours all be owners, or will they mostly be renters?  Will you be allowed to rent out your place?
• Ask pointed questions about the condo development and its management:  Is the development well managed?  What is the current financial situation of the development?  What financial reserves are maintained?  What special assessments have been done?  What work is planned for the future?  If you reach the point of having a home inspection done, pay the extra to have your inspector look beyond the walls of the unit you’re considering for purchase.
• Buy the right property insurance:  Remember that you may need to protect your share of common property should an accident cause damage beyond your own unit.
• Plan to get involved with the condo development board of directors:  This is the best way to be informed and have a say about what happens in the condo community.

For an excellent and thorough exploration of everything relating to condos in Canada, download the Condominium Buyers’ Guide from CMHC.    Of particular use to a prospective condo owner are the checklists for evaluating the physical condition of the condo, as well as detailed lists of questions to ask before you sign a purchase contract.

Ready to jump into the condo market, either as a residence for yourself or as revenue property?  I would be happy to help.  Call or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.