Oscar Miklos
REW

Buying a condo? The legal doctrine of caveat emptor (“let the buyer beware”) continues to apply to real estate transactions in BC today, and can have the effect of denying the buyer a remedy for defects and deficiencies discovered in the property after purchase. In general, the onus is on the buyer to determine the state and quality of the property being sold – rather than on the seller to point out any potential problems.

When purchasing into a strata building, an important part of the buyer’s due diligence process is reviewing and understanding the current bylaws of the strata corporation. A failure to review the bylaws can lead to nasty, unwanted surprises for new homeowners later down the road. 

Schedule “A” of the Strata Property Act establishes a standard set of bylaws that apply to all strata corporations unless some or all of them have been replaced by custom bylaws. Any bylaw amendment must be passed by a three-quarter vote of owners at either an Annual General Meeting (AGM) or a Special General Meeting (SGM). Practically speaking, most large strata corporations will have adopted their own custom bylaws.

Bylaws are only enforceable if they are registered with the Land Title and Survey Authority (LTSA). However, there is no strict time limit within which a strata corporation must register the bylaws at the LTSA after their adoption by the owners. In a seller’s condo market, it is not unheard of for prospective purchasers to submit offers without any subjects. In such cases, time-permitting, prospective purchasers should consider ordering a copy of the strata corporation’s registered bylaws from the LTSA prior to submitting an offer. 

In addition to reviewing the registered bylaws, it is important for prospective purchasers to request a “Form B” Information Certificate. The Form B discloses a variety of important information about the strata lot and the strata corporation including any copies of any bylaw amendments that have not yet been registered with the LTSA. 

Here are five types of bylaws that you should pay particular attention to, as they could make a huge difference to many buyers.

Rental Restrictions or Rental Prohibition

Particularly if you’re purchasing the property as an investment, but also if you might simply want to rent out your place and go travelling, you will want to ensure that you are in fact allowed to rent out your strata lot. The strata corporation may have already enacted bylaws that could either prohibit the rental of residential strata lots entirely, or limit the number or the percentage of strata lots that may be rented out. Strata corporations may also restrict the length of time for which strata lots may be rented.

Short-Term Accommodation Prohibition

Offering up all or part of your strata lot for short-term accommodation can be a significant mortgage helper. However, the rise of AirBnB has led many strata corporations to pass use-of-property bylaws that prohibit short-term accommodations. So, even though the City of Vancouver will now permit primary residences to be let short-term by licensed hosts, that doesn’t mean the strata corporation permits this practice.

These bylaws should not be confused with rental restrictions or prohibitions, as BC courts have found that short-term accommodations are legally different in nature to rentals. Unlike with rental restrictions or prohibitions, there is no grandfathering of use-of-property bylaws. Rather, they take effect as soon as they are registered with the LTSA.  

Pet Restriction or Pet Prohibition 

When buying a home for yourself, make sure that your pet has a home as well. Pet bylaws vary greatly and can be as extreme as a complete pet prohibition. However, it is more common for strata corporations to restrict the number and types of pets.

The often-used Schedule “A” bylaws restrict pets in a strata lot to one or more of (1) a reasonable number of fish or other small aquarium animals, (2) a reasonable number of small caged mammals, (3) up to two caged birds and (4) one dog OR one cat. Strata corporations who have passed a custom pet bylaw may have modified these restrictions and may require pets to be pre-approved and registered with the strata council.

Approval for Hardwood Flooring

Want to replace carpeting with hardwood floors before moving in? It’s important to remember that when it comes to strata living, an owner is not the master of their own domain. In an attempt to reduce noise transmission between strata lots, many strata corporations have adopted bylaws that specifically regulate the installation of new flooring.

Even if your strata corporation’s bylaws do not contain specific provisions targeting the installation of flooring, the bylaws will always contains some general provisions requiring approval of the strata council for alterations or renovations to a strata lot. Proceed with caution before making such changes.  

Insurance Bylaws

Unfortunately, many homeowners will check their strata corporation’s bylaws only after a problem arises. One very common issue faced by owners in a strata building concerns the obligation to repair water damage. Depending on the wording of insurance bylaws, you may be liable for damage caused by water escaping from your strata lot irrespective of whether you have been negligent or careless. The easiest way to protect yourself from such claims is by making sure that you purchase your own individual homeowner insurance to fill in any gaps left by the strata corporation’s insurance policy. 

© 2018 REW.ca

Family with history of bylaw violations and maintenance problems now faces foreclosure proceedings

Wendy Stueck and Mike Hager
The Globe and Mail

A lender has filed foreclosure proceedings on two rental properties owned by a Vancouver family renowned as problem landlords, putting more pressure on a group of aging siblings who are already facing hundreds of charges from the city over the decrepit state of their buildings.

The buildings are owned by companies controlled by members of the Sahota family.

The foreclosures also indicate potential financial strain in the Sahota family’s property empire, which was built over the past four decades by family members – including Parkash Sahota and her brothers, Pal and Gurdyal Sahota – and includes apartments as well as single-room occupancy hotels in the city’s Downtown Eastside.

Pal Sahota did not immediately return a request for comment.

Tenants at the rental buildings – two, three-storey apartment complexes on the city’s east side, one at 2178 Triumph St. and the other at 525 East 5th Ave. – received notices last week that mortgages on the buildings were in default and that their rents should be paid to management companies for the lenders.

“The mortgage is in default and a foreclosure proceeding has been commenced,” the notice to tenants for the East 5th Ave. property says, adding that rents are being collected by an agent “effective immediately.”

Peoples Trust Company is the lender for both buildings, documents state.

According to property records, the Triumph Street building is owned by a numbered company that lists its directors as Gurdyal Sahota and Pal Sahota.

The three-storey apartment building at East 5th is owned by Prang Holdings, which lists its director as Gurdyal Sahota, and was bought by the family in 1997 for $1.77-million. The building, which has more than a dozen units, was recently assessed at $9.65-million.

The family bought the block-long complex on East 5th in 1976. At the time, with the apartments bordering a gritty industrial area to the east of False Creek, the property cost $810,000.

Now, it neighbours the gleaming new campus of the Emily Carr University of Art and Design and was recently assessed at $33-million.

The Sahota family has a lengthy track record of bylaw violations and maintenance problems.

This past June, city officials ordered one of the Sahota’s buildings, the Balmoral Hotel, closed over safety concerns.

Inspections found fire and structural problems with the building, a nine-storey property constructed in 1912.

The city, provincial housing agency B.C. Housing and non-profit groups scrambled to find new accommodation for more than 100 people who had been living at the Balmoral.

In 2017, the city filed dozens of charges against the companies that own the Balmoral and Regent hotels for bylaw violations, citing “significant safety risks and maintenance deficiencies impacting tenants.” Those legal proceedings continue.

Ken Wong, a long-time tenant at the East 5th apartment, said Tuesday he was not worried by the foreclosure, as any changes – such as a possible sale of the building – could take months.

“If they sell it to a developer, that [development] would have to go through the city and that would take a long time,” Mr. Wong said.

© Copyright 2018 The Globe and Mail Inc.

Steve Randall
Canadian Real Estate Wealth

The premier of British Columbia has rejected calls for a ban on foreign buyers of real estate in the province.

John Horgan has reacted to the Green Party’s leader Andrew Weaver who has been calling for a ban similar to that implemented in New Zealand.

“I just don’t believe, in an open economy, that’s an appropriate way to proceed,” Mr Horgan said at a news conference Tuesday, adding that a ban would send the wrong message internationally.

He did acknowledge that something has to be done to tackle affordability issues in BC and said that there will be proposals in the budget to curb speculation, reduce demand and soften prices.

Mr Horgan says that the BC government will help boost the construction of rental apartments and single-family homes.

Copyright © 2018 Key Media Pty Ltd

Units a fraction of the price of those near UBC in Vancouver

ROBIN BRUNET
The Vancouver Sun

Students attending university as well as the parents funding them – are often faced with accommodation challenges. Finding housing on campus is difficult and costly, and is only guaranteed for firstyear students.

But for parents who think paying rent for student housing is the only recourse, U-Six demonstrates that this is not the case. The latest addition to the Mission Group’s U-District Community near the University of British Columbia Okanagan campus gives them the ability to turn rent money into home equity and earn an income by renting the condominiums (U-Six has 57 of them) to their children and roommates if desired.

U-Six is an equally strong opportunity for investors to rent to students or locals. “Everyone benefits, whether the buyer is a parent or an investor, and the beauty of U-District here in Kelowna is that students work towards a degree from a world-class university, but the accommodations are just a fraction of the price of those available at UBC in Vancouver,” says JoAnne Adamson, vice-president of marketing and sales for Mission Group.

U-Six by Mission Group Homes Ltd. and designed by Meiklejohn Architects is within easy walking distance of the Okanagan campus. It offers a variety of contemporary, open-concept studios as well as spacious two- and three-bedrooms units. All homes feature full kitchens, in-suite laundry and a bathroom for each bedroom.

As with the other U condominium buildings, Mission Group’s aim was to give students the chance to enjoy the fun, study-oriented feel of living on campus without the dormitory experience. “Plus, U-Six gives them the freedom to choose their roommates,” says Adamson.

Capping all of this off is U-Six’s price. “The studios start from $199,900,” says Adamson. “Two bed, two baths sell from $329,900, and three bed, three baths start from $409,900.”

Affordability was one key reason why Vancouver-based engineer Victor Mao purchased two three-bedroom condos at U-District last year, and he has lost no time renting out both units. “Quite frankly, with rising costs in Vancouver I was worried about how to fund my retirement, but when I read about U-District and did some investigating, I realized this was a great investment in a location that is rapidly evolving.”

Mao is referring to growth in the surrounding areas of the UBC Okanagan Campus. Kelowna is undergoing a massive change, with everything from the Kelowna International Airport to the popular city’s downtown enjoying expansion and upgrading. And with a vacancy rate of just 0.2 percent, investors like Mao are guaranteed to generate income from U-District almost immediately.

Vancouver-based Ajesh Sen purchased a two-bedroom, two-bathroom condo in the U-Three building last August and is currently renting it to two students from China. “While Kelowna was attractive to me, finding out that UBC had a campus there was the deciding factor,” he says. “Given the way real estate has evolved in and around UBC Vancouver, I felt like I was getting into a ground-level opportunity.” Indeed, the 10-year-old campus has already embarked on its second master plan that may see it double in size over the next 15 years.

A computer engineer by trade, Sen was also impressed by the quality of his condo. “It has beautiful, thoughtful details as well as fabulous appliances,” he says. “The people at Mission Group went out of their way to ensure the homes would live up to being long-term investments.”

Sales for U-Six will begin in early February with all of the homes ready in time for the fall academic start of 2019. For more information please check out usixliving.com. U-Six Sales Specialist Wilf Lethbridge is available at 250-718-7072 or [email protected]

© 2018 Postmedia Network Inc.

Impressive outlooks to be on offer at Marcon?s Semiah in White Rock

Kathleen Freimond
The Vancouver Sun

Semiah

Project address: 1439 George Street, White Rock

Developer: Marcon Developments

Architect: Arno Matis Architecture

Interior designer: Trepp Design Inc.

Project size: 14 storeys

Bedrooms: two- and three-bedroom units

Unit size: 1,087 – 1,873 sq. ft.

Price: From $869,900

Sales centre: 1418 Johnston Road, White Rock

Sales centre hours: noon — 5 p.m., Sat — Thurs 

Phone: 778-545-9393

Website: semiahbymarcon.ca

Marcon Developments is making the most of the location of its new mid-rise residential tower in White Rock. The architecture of the 14-storey Semiah was influenced by the view of Semiahmoo Bay, while beach sand, driftwood, sand dollars and seagulls inspired the interior design.

Semiah will have only 88 residences, and combined with plans for spacious interiors, offer a boutique feel, says Nic Paolella, Marcon’s director of development.

“We focused on creating good, livable homes, while maximizing the view potential,” says Paolella. “White Rock has an interesting street grid. As it nears the beach, the grid changes to orient itself to the water.”

To make the most of the outlooks, the project at 1439 George Street was sited to reflect the same positioning — relative to the views — as the single-family homes on the street grid farther down the slope.

Semiah, which will include two- and three-bedroom homes ranging from 1,087 square feet to 1,873 square feet, is attracting interest from people who are considering downsizing from single-family homes. 

 “The homes are wide and shallow to let in the maximum amount of light,” Paolella says. “Buyers don’t need apartment-sized furniture, they can move in with the furniture they already have. The washer and dryer are side by side and all the major appliances in the kitchen are full size,” he says.

“These homes are set up to function well for people who no longer have family living with them on a daily basis, but still want the space to entertain and have children and grandchildren visit. The big balconies [will] also add to the feeling of spaciousness and provide the opportunity to enjoy outdoor living.”

Inside the residences, the interior design and colour palettes were influenced by the elements on image boards developed by the team at Trepp Design Inc.

“The darker scheme was inspired more by the tones of driftwood, seagulls and mussels, and the lighter scheme is more about the golden sand, the warmth of some of the lighter stones, and sand dollars,” says the firm’s principal, Scott Trepp. “We really took our inspiration from the nature that was specific to that community and that location.”

With the end user in mind, Trepp says he aimed for interiors that were not too modern, but had a “modern sensibility”.

One of the ways he achieved this esthetic was by using an interpretation of a Shaker door for the kitchen cabinetry.

“It’s a more modern take on a Shaker door. We used the wood grain and turned the direction of the wood grain within each door panel to give a detail to the cabinetry itself. So, it’s not just a plain slab-style door. It has some real detail and character to it,” he says.

Trepp notes that the kitchens are designed like those in single-family homes, rather than condos.

“One of the ways we did that was to use appliances – like the Wolf cooktop – more often seen in single-family homes,” he says.

While the choice of quartz for the countertops was a nod to the durability of engineered stone, design was also a factor, Trepp says.

“In the darker scheme, the stone backsplash is very [visually] active. There’s a lot of movement to it, and to do that on the island counter, waterfall edges, the backsplash and the countertop would be too much in the space,” he explains.

The lighter scheme, showcased in the display suite at 1418 Johnston Road, has a much softer look, Trepp says.

Full-height pantries in the kitchens are designed to provide plenty of storage and soft-close hardware on the cabinet doors keeps things quiet in the open-plan living space. The appliance package includes the Wolf gas cooktop, an integrated 36-inch Bosch french door refrigerator, a Bosch combination oven and dishwasher, plus a 24-inch Marvel dual-zone wine fridge. The Hansgrohe faucet with dual spray, the double sink and the recycling bins ensure the functionality of the space.

The marble floor and tile surround in the ensuite bathrooms add a luxurious touch and speaks to the quality of the development, Trepp says. A Duravit undermount sink nestles below the vanity’s stone countertop, while a Hansgrohe widespread chrome faucet adds some sparkle and complements the rain shower head and other bathroom accessories.

In the powder room, a feature wall mosaic of Bianco Carrara marble tile laid in a chevron pattern attracts some attention.

Engineered hardwood flooring run throughout, seamlessly connecting the rooms and enhancing the spacious ambience of the view homes.

Paolella says Semiah includes many energy-efficient features. “It’s important to have an energy-efficient building that does not consume too much energy. Nowadays, buildings need to have good insulation, quality windows and efficient heating and cooling systems with a good quality building envelope,” he says.

Some of the features that support this approach are the offset balconies that maximize natural light, high-efficiency hot water and heating and cooling systems and Energy Star windows.

The underground parking area features charging stations for electric cars, a designated bike storage room and a storage locker for each home. 

Construction is expected to start this spring.

© 2018 Postmedia Network Inc.

BCREA

The British Columbia Real Estate Association (BCREA) reports that a total of 103,763 residential unit sales were recorded by the Multiple Listing Service® (MLS®) across the province in 2017, a decline of 7.5 per cent from a record 112,211 unit sales in 2016. The average MLS® residential price in BC was $709,579 in 2017, up 2.7 per cent from the previous year. Total sales dollar volume was $73.63 billion, down 5.1 per cent from 2016.

“Robust housing demand in 2017 was underpinned by a strong economy, employment growth and rising wages,” said Cameron Muir, BCREA Chief Economist. “Above trend migration, both international and interprovincial, also bolstered housing demand, while broader demographic fundamentals added fuel to condominium sales in urban centres and to all home types in retirement-oriented communities.”

The BC housing market ended the year with a strong December. Home sales increased 4 per cent from November, on a seasonally adjusted basis. However, the year-end results were likely pushed higher by some homebuyers advancing their purchases to avoid tougher mortgage qualification rules in the new year.

In December, a total of 5,738 residential unit sales were recorded by the MLS® across the province, an increase of 21.5 per cent from the same period last year. Total sales dollar volume was $4.2 billion, up 36.3 per cent from December 2016. The average MLS® residential price in the province was $734,108, up 12.1 per cent from the same month last year.

Copyright ©2018 BCREA

Steve Randall
Canadian Real Estate Wealth

Home prices slowed generally in the fourth quarter of 2017 but the condo sector, especially in the GTA and Vancouver, outpaced the market.

Royal Le Page says that 2017 was the year of the condo as affordability issues made them more affordable in the priciest markets compared to other property types.

The brokerage’s National House Price Composite, tracking house prices in  53 of Canada’s largest housing markets, showed a 10.8% year-over-year rise year in the median price of a home to $626,042 in Q4,2017.

The median price of a two-storey home was $741,924, up 11.1% year-over-year-over-year, while bungalows were up 7.1% to $522,963.

Condos though were up to a median $420,823, a 14.3% annual rise, while these properties in the Greater Toronto Area jumped 19.5% to $476,421 (19.6% in the City of Toronto to $515,578).

In Greater Vancouver, the median price of a condo was up 20.2% to $651,885 (18.7% to $775,806 in the City of Vancouver).

“To prospective homeowners in our largest cities, condominiums represent the last bastion of affordability,” said Phil Soper, president and CEO, Royal LePage. “This is especially true for first-time buyers whose purchasing power has been reduced by tightening mortgage regulations.”

“The unsustainably high rates of home price appreciation witnessed in recent years in B.C. and Ontario were dangerous to the stability of not only the housing market, but to the broader economy itself,” continued Soper. “Policy measures like the OSFI stress test will quell runaway housing inflation to an extent. However, we do foresee an upswing in demand in the latter portion of the year, as prospective buyers adjust to the new realities. To put it another way, the demand is still there.”

Copyright © 2018 Key Media Pty Ltd

Steve Randall
REP

The value of building permits issued has declined for the first time in three months as both residential and non-residential intentions slipped.

The newly-released figures from Statistics Canada for November 2017 show a 7.7% month-over-month decline overall to $7.7 billion permits issued by Canadian municipalities.

The decline was due to a 12.3% drop in non-residential construction intentions ($2.9 billion) and a 10.1% decline in multifamily building permits ($2.2 billion).

Residential permits were down 4.6% overall, with single-family little changed from the previous month, up 0.6% to $2.6 billion, roughly in line with the rest of 2017.

Year-over-year the value of all permits was up 1.3%; down 5.1% for residential (single-family down 6.2%, multifamily down 3.7%); and up 13.8% for non-residential.

By volume of homes, the figures show a 10.8% drop year-over-year and 6.8% month-over-month. Single-family permits were issued for 5,790 units, up 2.4% m-o-m but down 10.3% y-o-y. Multifamily permits were issued for 11,310 units, down 11% from the previous month and from a year earlier.

Toronto saw an 18.8% rise in permits issued in November to $1 billion with multifamily up 30.1% ($532.4 million) and single-family up 8.6% ($496.3 million).

Vancouver’s permits declined 21% to $408.9 million with a 29.5% drop for multifamily ($260.3 million) and a 0.2% rise for single-family ($148.6 million).

Copyright © 2018 Key Media Pty Ltd

Standout touches distinguish Amacon’s Juneau

Mary Frances Hill
The Province

Juneau

What: 147 homes, including five townhouses

Where: 4465 Juneau St., at Willingdon, Burnaby

Residence sizes and prices: One- to three-bedrooms ranging from 515 to 1,979 square feet, priced from mid-$500,000; two-bedrooms starting from the $820,000s

Developer and builder: Amacon

Sales centre address: 2287 Willingdon Ave., Burnaby

Sales centre hours:  noon — 5 p.m., Sat. to Thurs.

In her work on the interiors at Juneau, Amacon’s new residential community in Burnaby’s Brentwood area, designer Louise Noon created a novel way to stand out in a burgeoning urban centre. She embraced the energy that surrounds it — in everything from the young families attracted to the larger suites, to the simple, modernist architecture of the building itself.

“Juneau is derived from the French word meaning ‘young’, so we wanted the interior to be natural and fresh,” says Noon, a principal with False Creek Design Group.

To appeal to homebuyers who prefer a touch of retro style, False Creek Design infused a fresh midcentury-modern flair to the interiors in accents that stand out among a calm, neutral palette. One kitchen’s tall, narrow window allows natural light to stream in while a homeowner gets busy at the food preparation area. Noon chose an unconventional fixture to hang above the rectangular dining room table — a centrepiece that resembles a collection of light globes arranged creatively. The piece satisfies False Creek Design Group’s taste for sculptural contemporary pieces with a hint of vintage flavour.

 “Our intent was to deliver on a sculptural approach to the key areas,” Noon says. “Our mandate was to use shapes and textures to create an added level of interest on the high walls. In each room, we used either geometric patterns or a play of shapes, which we feel is an architectural approach to layering the backgrounds.”

Anchored by a transit hub and a busy and growing retail centre, Brentwood has been a magnet for developers for some time. But Juneau stands apart in the booming community, notes Grace Austin, Amacon’s sales and marketing manager.

“One of the biggest differentiators of Juneau is the boutique sense of scale. As a single highrise offering at 23 storeys, it’s a more intimate current offering in Brentwood,” says Austin, referencing the large community of towers and retail that has transformed the neighbourhood.

Homeowners of larger suites will likely be attracted to Amacon’s family-centred approach, which begins with the practical functions of storage and full-sized appliances in the larger homes, she adds.

“We wanted to create interiors of homes that … are highly functional,” Austin adds, referring to the integrated 36-inch wide fridge, full-sized washer and dryer, and custom closet organizers in the master bedroom closet included in each two- and three-bedroom home.

IBI Architects took its inspiration for the building’s exterior design “modernist compositions from Constructivist, Suprematist and de Stijl movements,” says Austin, referring to design styles that took root in the 1920s and 1930s and embraced simplicity and basic components of design. Shapes, geometric design and texture were paramount to the architects and interior designers alike.

“Colours and forms are simplified with the use of charcoal grey and white as the building’s dominant colours,” Austin says. These tones can also be seen in False Creek Design Group’s “Ecru” colour scheme, she notes.

© 2018 Postmedia Network Inc.