True Crime Scene - Toronto Condos

The True crime scene; Is leaving money on the table.

You have a listing. It's almost 30 days on the market. You ask for the offer by email. Well, because everyone is in different places.   Its easier. It saves a trip. We offer you 90% of asking.  You sign back asking price less 2.5%

We took our marbles and went away.

You call me back a week later asking why we didn't want to negotiate?

What happened?

What happened at the Offer Negotiation Table?  Let me explain...  There was no negotiation.  Each party preened their position and stood their ground.

A negotiation is the most vital part of the Home Selling process.   Good to say that our market is in a perpetual upswing so everyone is in multiple offers...  But is it?  Some Condos and townhomes are averaging 37 to 42 days on market.

The nuance of presenting an offer and the etiquette of discussing your Buyer's / Client's capacity, ability and URGENCY to close a transaction is important.   Our rush to substitute technology for service and dialogue does a disservice to everyone involved.

If your best closing line is "It's a WIN WIN WIN situation";  It appears one of the four people there is going to lose.  Reducing the amounts to their monthly carry costs to make them seem insignificant may work but the owners raised 3 children in that kitchen, marking each birthday with a line on the door frame for height. 

What value is placed on the emotion of the transaction.   The scene of the crime was the rush to initial the small glass tablet and email the response.

What do you think?   

Grenadier Square Toronto Condo Development vs NIMBY

Project Quebec Ave, High Park Ave, intensification for condos.

Location; This block of high rise buildings is home to a large tenant population with existing [affordable] rentals 

OMB hearing on Grenadier Square development proposal (two 26-storey buildings at 51-77 Quebec Ave. and 40-66 High Park Ave.), from High Park Coalition, a citizen group which is opposing it:

     "We have great news:  On Aug. 28, City Council rejected the proposed settlement on the Grenadier Square development, instead adopting Councillor Doucette’s motion to continue fighting at the OMB with an outside Planner. Thank you to everyone who reached out to the City Clerk to oppose this agreement – over 250 emails were sent in under 48 hours, again demonstrating how strongly the community opposes this development.

     "What’s next? On Sep. 8, representatives of the High Park Coalition will head to the Ontario Municipal Board (OMB) hearing, and we want you to join us.  Help show community opposition to this development by filling the room with supporters, especially during the first few days.  The hearing begins at 10 a.m. at 655 Bay St., 16th floor, and is scheduled to run 10 days.  Please join us for an hour or two if you can!

      "Our OMB Team includes highly knowledgeable and experienced technical professionals. Together, we’ve developed a strong strategy to demonstrate why the Grenadier Square developments don’t belong in High Park.  Please help us secure the funds we need to have our professionals support our case at the OMB hearing for the full 10 days, by making a donation to the High Park Coalition today."

Conclusion;   Toronto requires more density.  Density requires infill construction that is over existing TTC Access points. [namely subways]  High Park is a desirable neighbourhood with community shops and serves.

Builder will make major concessions to Toronto with Development Fund   [sect 37] in the Millions of dollars to obtain permission to create this project.

Neighbourhood Group will mobilize and collect money so that they can pay professionals to discuss shadows and line of site; (refer to para (1) where Hi Density already exists)   You were included in the process and a few lawyers will say.... " We were able to negotiate them down a few floors. 

Will the developers succeed?

Toronto Condos For Sale

You want to sell a condominium unit in Toronto.

The market is competitive;  the number of units for sale and days on market keep increasing.  This trend will continue.

You not only need a lawyer to verify the details in a STATUS CERTIFICATE but we may also need an accountant to explain what's happening inside your building.

Does the agent you are going to hire understand the structure and amenities of your building.   Can they explain what is actually for sale?   Can they explain the costs to operate and live in your community. 

This is a worthwhile PDF to take in that explains the legal life cycle of a condominium and the turn over process from developer to the owners.  .... into Warranty and Management. Then our years of ownership.

http://sites.airdberlis.vuturevx.com/44/259/uploads/lifetime-of-a-condo-final---july-15.pdf

The video is here; Archived Video Conference

http://hosting.epresence.tv/oba/21/Watch/1782.aspx

Event password is ab0715 


You are NEVER disappointed when you hire someone who understands the job.

Call me
David Pylyp
647 218 2414

Condo Reform in Ontario

NDP government wants changes to the Condominium Act to better protect consumers.  To recap;

• An independent  Condo  office  to hear  disputes quickly  & cheaply  instead  forcing  condo  owners  into the courts  
• Mandatory  licensing of condo  managers
• No  more "weasel clauses"  buried  in condo purchase  agreements: condo  buyers  should  be able  to know exactly  what  they  are  buying  and  how  much  it will cost,  and  they  should get  what  they  were promised
• Standard plain-English  language  for condo  Declarations  and purchase  agreement  
• No  more  rogue  boards: greater  transparency,  financial accountability, better governance, education and support for condo  boards.  
• No more falling glass, leaky  windows or paper-thin  walls: update  Building  Code  and  reform  TARION  to  protect condo residents along  with  all  new  home  buyers

That all sounds good!    Good for the consumers!   Great for Buyers!

Di Novo Condo Reform by David Pylyp

I wrote about this previously in a Condominium Investors forum
https://plus.google.com/+DavidPylypToronto/posts/4RC8EihvpgX

The questions to clarify first are;


We will be creating a QUASI judicial board staffed by WHOM? Judges, Lawyers? Political Appointees?    We will need to build Government Offices house all the Hearing Rooms and Dispute Mediation Councillors .  DO we need to be licensed and insured to appear in front of these committees?

How will this be paid for?   Ahhhhhh ...  a small surcharge of $5 - $10 per month, in the beginning and then....  application fees per program applied for.  

I agree with Licensing Standards and a complaint process for Condo Boards and the Management Companies that provide onsite management.  That is a Small Claims Court function where claims of injustice are heard by Lawyers and Judges.

There is a reference to Building Standards, Tarion and Falling Glass.  All these things are governed by the EXISTING Condominium Act, Tarion Warranty and Building Codes that exist in each City.  Does this mean that Toronto has poor building codes?  I think not. The Ontario government and Tarion already have a relationship. Buildings pay for Performance Audits for Engineers to examine drawings and determine if what was purchased as delivered.  Committees of Developers, Builders, Tarion and the COndo Board plus their lawyers MEET in person to discuss Audits and inspections.

Rogue Boards and Transparency;  The biggest problem is that Purchasers of condominium suites want to bend the Rules and Regulations to suit their needs after they move in, instead of investigating the BY LAWS with the ir lawyer. prior to purchase.

The BIGGER QUESTION to ask is "Do we want another level of Government [ like the Landlord Tribunal ] to hear dispute resolution matters between condo boards and the owners at the expense of those very same condo owners?"

Whatever is created in haste is difficult to unravel.

"Once Done.  Cannot be undone.... "    Captain Jack Sparrow  

RE/MAX Spring Market Report 2014

or read the entire article yourself  http://remaxoa.com/14/PR/SpringMarket/2014_PR_RPT.pdf 

 Now lets go shopping! Call me at 647 218 2414 David Pylyp

How are Maintenance Fees Set?

How are Maintenance Fees Calculated?

Total operating Expenses PLUS a commitment of an additional contribution to Reserve ( that’s what we call  the forced savings account)  

Special assessments are extraordinary items that need to be paid for Once announced. Usually these expenses are Amortized over 3 or 4 years and offer owners a PAY it now price. Once a special Assessment has been declared even selling your unit provides no escape.

Money can be borrowed to make capital repairs and is paid for from the special assessments. The Board of Directors need to pass special By Laws to permit borrowing.

Sample budgets include;    * For discussion purposes only

			% of CEF
	Common Element Fee			1,500,000
	Interest & Other			11,400
				1,511,400
Note	Expenses:
3	Gas		4.8%	29,000
3	Electricity		17.2%	322,600
3	Sewer & Water		5.3%	59,700
3	Intercom		0.1%	2,300
4a	Cleaning Contract		6.7%	125,500
4b	Building - Exterior		1.3%	23,700
4b	Building - Public Area		0.6%	11,900
4b	Building - Flooring/carpet		0.4%	7,900
4c	Plumbing		0.4%	7,400
4c	Venting		0.8%	15,000
4c	Air Conditioning		0.7%	12,300
4c	Boiler/Furnace		0.7%	12,300
4c	Elevator		2.5%	46,000
4c	Fire & Safety		0.8%	15,000
4c	Electrical Repairs		0.1%	2,000
4c	Heat Pump		1.4%	25,700
4c	Recycling System		0.1%	2,000
4d	Grounds - Equipment		0.4%	7,300
4d	Grounds - Landscaping		0.8%	15,000
4d	Grounds - Parking Lot		0.6%	11,000
4d	Grounds - Public Lighting		0.1%	1,500
4d	Grounds - Storm Sewer		0.3%	5,000
4e	Paint - Exterior		0.0%	500
4e	Paint - Public Area		0.2%	3,000
4f	Snow Removal		0.5%	9,500
4g	Garbage Removal		0.7%	13,000
4h	Recreation		0.2%	3,000
4i	Janitorial Supplies		0.1%	2,000
4i	Pest Control		0.1%	1,000
5	Staff Salaries/Benefits		0.0%	0
5	Office Expense		0.3%	5,000
5	Communications		0.3%	5,000
5	Interest and Bank Charges		0.1%	1,500
6	Security		16.6%	311,000
7	Management Fee		5.4%	101,800
	Insurance		1.5%	28,300
8	Professional Fees		0.8%	15,000
9	Reverve Fund - Assessements Repair and Replacement		28.0%	500,000
			100.71%	1,511,400
	Surplus (deficit)			$            69.00
	working subtotals			1,500,000

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 Study which explains when things will need to be replaced as they wear out and what monies should be on hand.

Reserve Fund Studies will be conducted every 5 years in accordance with the Condominium Act.   Condo Act 1998    This is now being updated with the New and Improved condo act that is pending approval.  Details here  

If you are considering a condo; ask questions.  Understand its a lifestyle and community that you are purchasing.

Humber Bay  and Toronto West Condo's?   Love to hear from you.