Tuesday, March 18, 2014

Condo Selection Criteria

What's a good deal?
    Do you like the style is just part of the process?
    Is it a presentation package with floor plan?
    Proposed Expenses?

How do you define what is or is not "LOW" maintenance fee? 
How do you define best value? 
Are 1 + 1's better than two's? 
What is the mix of units in the building? 
How many are on a floor? 
How many are rented? 
Is there parking for each unit + parking for guests? 
Is there a community surrounding that condo cluster that has walk-ability? 
How many requisition meetings have been held? 
Is the Performance Audit and Reserve Fund Study complete? 
As a second time buyer [for investment] does buying 416 and paying extra LTT bother you?

Contribution to Reserve Fund is calculated by an inspection of the Building by Professional Engineers. This report is called a Performance Audit. The receipt of this report calculates the Remaining Economic Life of each building component.  The result of this, is the Cash Flow Reserve Fund contribution which explains when things need to be replaced as they wear out.

Reserve Fund Studies will be conducted every 5 years in accordance with the Condominium Act. 

Monday, March 17, 2014

Let's Throw That Tenant out!

How do you EVICT that tenant? 

You can evict a tenant if they are behind and you have an order for Possession from the Land Lord Tribunal

OR Terminating for Demolition, Change of Use of Substantial Renovation, Must have Municipal Approval, Building Permit, If more than 4 units compensate Tenant with 3 months rent, or find the tenant another place to live, In a substantial Renovation the Tenant has the right to return to their previous unit.

OR If you need the unit for your own immediate family use*
*provided that the unit is less than 3 units

OR If there is a problem with conduct, make repairs to unit with 7days or cease poor behaviour, The same process can be applied for because of animals or smoking,

It may be sufficient that the insurance should be IN Force as required in the lease or that Utilities have not been transferred into their name.

Are you buying a property expecting to THROW that tenant out? Terminate the tenancy?

If the tenant has a lease It is assumed that during the period of Due Diligence you verified the tenant details. Generally if there is no lease (the tenant is month to month) a 60 days CLEAR notice is required and must be made in Good Faith.

or your own PEACE of Mind  schedule the closing at least 30 days post the intended vacant possession.

In the Agreement of Purchase and Sale a clause like the following should be included;

" The BUYER agrees that they or their immediate family intends to move into the property on closing. In this regard, the SELLER agrees to provide the applicable 60 days notice to the tenant using Form N12 under the Residential Tenancies Act, on the behalf of the Buyer. The BUYER agrees to provide whatever support information may be required to demonstrate that the buyer or their immediate family will in good faith be moving into the property on closing. In the event that the tenant disputes the notice given, then the parties agree to extend the closing of this transaction to a period not more than 30 days, in order to effect the eviction of the  tenant. 

In the event that vacant possession cannot be obtained prior to closing, as extended for any reason, then the BUYER shall have the right, but not the obligation, to complete the transaction and accept the tenant, or cancel the agreement and have any deposit returned, without interest or deduction."

Work with informed experienced people.

Call me for an appointment today   
David Pylyp 647 218 2414

Tuesday, March 11, 2014

Ontario Condominium Review

Condominium Owners and Investors just want responsible leadership and management. You want to be informed, and uninvolved yet be a transparent process. So you elect a Board of Directors.

You don't want to hear about WorkPlace Health and Safety Issues, Insurance Claims being chrged back to specific units or Requisition Meetings.  Just Keep maintenance Fees [low] stable.  

Me:  Do you attend your annual Condo Board Meetings?   Why is there so much FIGHTING?   Is it lack of understanding or lack of explanations?
Resp: You presume people want to know. The reality is most people don't want to know. They want someone else to deal with it all.
Me:   How can we help to better understand condo rules and budgets?
Resp: They have a problem when they hear conflicting opinions because they don't want there to be potential issues raised.
Resp: If there are real, legitimate issues, people want to ignore it.
Resp: I went through the ringer when I purchased my Condo & dealt with incompetence. 

Owners want responsible leadership and management.  They want to be informed, and uninvolved yet be able to see a transparent process.  They want a guaranteed return on their investment.

The Provincial Gov't has finished its 3 stage review of the Condominium Act that was being worked on since Fall 2012 and are now drafting the new Act. Some vast improvements in the works...