Click on the link below to see yours truly in support of the Realtor's Care Blanket Drive

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I met a very sweet woman last night at Lansdowne mall in Richmond. The brokerage where I hang my license has a real estate kiosk there and I spend a few hours a month meeting and talking with people. Mostly about real estate but some folks just want to talk about nothing inparticular. I was talking with someone and noticed this woman who seemed to be anxious to get my attention. I asked how I could assist her and she said that she had made a mistake. She had purchased a condo in another city that she didn't want to live in and is thinking of selling and buying in Richmond. Okay so far. Easy to list one and look for another. But not exactly.

 

She explained that she had attended a developer's open in 2009 with her friend and that today she had done the "walk through" (for deficiencies). So, my question to her "When does your purchase complete"? She didn't know and didn't understand the question. "Do you know when you have to give the seller the rest of the money?" No. Do you know when you get your keys to move in?" No. She had given a substantial deposit and did arrange for a mortgage though with a reputable lender. It isn't that she can't afford to buy it, but she had no idea about the process, who to call, where to turn when she had a question or a problem and the developer's representative rarely returned calls and most answers were "in a few days". Now she just feels trapped, confused and concerned.

 

It was her friend's intention to purchase, not hers. While they were in the lineup the representative gave everyone little sticky dots and told them to put on the unit they were interested in. She got a dot and put it on a number she liked. Then the representive placed contracts and pens in front of everyone (her explanation not mine) and said, "sign here, here, here" etc. and everyone did. Did she have her own realtor at the event? No.

 

 

She pulled out a ragged, rolled up copy of the contract. I asked her if she had taken the contract to a lawyer. Not yet but she had called one and the receptionist said she had to pay HST while her contract clearly indicates all taxes had been paid while it was still GST. Looking at the contract the developer is well past the date of completion and past 120 days. The lovely lady can understand spoken English but can't read it. She has no idea what her contract says. In her estimation, the whole thing was over in less than 5 minutes. The correct documents are there and in correct form. Dual agency, Working with a Realtor, Disclosures, developers contract etc. 

 

The question is bigger than simply providing the right documentation. Is the client served by just having them sign prepared contracts? Do they understand and will they be fully and properly represented when issues come up? So, I explained two things to her: 1) she needs to speak with her lawyer at this point as there appears to be a violation of her rights as the buyer and highlighted the section of the contract for her where there is discrepancies; 2) I explained the role of a realtor to educate buyers and sellers and to protect their interests and to help them navigate what can sometimes be a complex process. It doesn't matter if it's a developer as seller or a private homeowner - everyone should have someone on their side.

 

 

   

I think we did in the dog . . .

For my husband, it’s the perfect way to spend Father’s Day. Water, some snacks and at least 3-4 hours is what we usually plan for up there. Lynn Canyon is frequently misty (not foggy) and slightly cool with a bit of mugginess. Yesterday was no exception. No rain but enough moisture in the mist to make your hair quite wet and your clothing a bit soggy. Typical “raincoast” day on the North Shore. Love it!

The other side of the trail (back across Seymour Mainline) took us back to the junction of Rice Lake or Lynn Headwaters. We had actually been walking for about 3 hours and my dog was starting to struggle. (She’s a flatlander too!). Back at the Information Centre we opted for the ‘new shortcut’ back to the suspension bridge and our truck. By the time we got back, it took 2 of us to lift my muddy, exhausted dog into the back of the truck. Poor snoop (her name is Pebbles and she weighs about 80 pounds).

It is always interesting to go to a familiar place and find something completely new. We live in an amazing place. From flatlands to valleys and foothills in under 30!

This is not a post about bashing leasehold properties. It is a post about some of the unique aspects of buying and selling leasehold properties in the Greater Vancouver area. First, I am not an absolute expert on the subject but I have sold a few leasehold properties as a listing agent and have had a few buyers purchase leaseholds. I have even had one client sell her leasehold and purchased into another.

At the heart of leasehold is the relationship to the land on which the house, townhouse or condo is situated. More clearly stated it’s the right to enjoy the equity associated from direct landownership. That said buying a leasehold property is not for everyone. Basically, there is a tenant/landlord relationship. A lease agreement with a fee (rent/lease) is created initially between the two parties (usually landowner and first purchaser/builder) complete with covenants (the responsibilities of both parties), rules, bylaws and budgets in a document generally referred to as a Head Lease usually set to last 99 years from conception. All the units in a development will age out at the same time. In Vancouver and surrounding areas, the landholder maybe the city, a corporation, privately owned or First Nations lands. The properties are typically found in highly desirable areas like waterfront (or within walking distance). In smaller communities, the properties maybe close to shopping and schools.

Are all leasehold apartments and townhouses classified as “stratas”? No. In fact, some leasehold property owners never have any kind of board, representation, meetings, voting privileges, or decision making power. The lessees simply receive a report document once a year with an operating budget, financial statement and possibly assessments or levies. Many function as “true” stratas with elected boards, monthly meetings and AGMs. Some leases are prepaid so no worries of sudden changes in lease payments – but some are not and reviews based on changing market conditions and increasing land values can result in huge lease payment increases. So, does that equate into increases in value in the units as well? Yes, leasehold properties are market driven as well. Not just at the same pace as freehold properties. Some are very slow to show increase in value – sort of like a low interest savings account. Some increase far more rapidly and may seem more attractive to the investor. It’s still about location, condition and price.

So what is attractive about these types of properties? As mentioned, location is a big factor and most purchasers would never be able to buy these homes if they were freehold. As they are not buying the land, these properties are significantly cheaper than their freehold counterparts. In some areas, there may be a price difference of $300K for a 2 bedroom condo. The value of the land being the variable.

A significant challenge to both buyers and sellers is financing. Many lenders tend to shy away from leaseholds. Mortgages are charges created against land ownership. Leasehold properties don’t offer landownership. So, the “security or chattel” is effectively missing. However, lenders do consider the landowner (reputable), the age, the condition/maintenance history, the profile of the buyer and how much time is remaining on the lease. If there is less than 30 years remaining, it’s pretty tough to get financing. A line of credit maybe the best option at this point. Some purchasers view leaseholds as good investments and keep them as rental properties. The most important thing is for buyers to understand what they are purchasing and the relationship and expectations outlined in the Head Lease.

THE PINK TOUR VISITS OAKRIDGE CENTRE THIS FRIDAY, MAY 6TH FROM 10AM TO 3PM IN THE WEST PARKING LOT

The Pink Tour is a province-wide education initiative to encourage women 40 – 79 years of age to take advantage of BC’s free screening mammogram program.

Currently only 51% of women in BC who should go for a regular mammogram, actually do. According to World Health Organization investigations, if 70% of eligible women went for one, we could reduce the number of deaths from breast cancer by up to one third.

The Pink Tour’s most identifiable element will be a 70 foot branded bus which will travel through more than 50 BC communities from May to September.

Visitors to the bus will be able to walk through the bus and view displays and speak to the Tour staff about the importance of having a regular mammogram.  Displays will include messaging about overall breast health, facts about mammography, breast cancer risk factors and information on the Canadian Breast Cancer Foundation and its commitment to research and community support.  Visitors can also test their knowledge with an on-board quiz.

The tour team will also be able to use laptops on board the bus to provide a direct link to the Mammogram call-back program.  During the bus tour, a visitor can register their contact details and within several days they will receive a call back from the Screening Mammography Program about dates available for a mammogram.  Visitors are also encouraged to call 1.888.GO.HAVE.1 directly to book a mammogram themselves.