Drawn to condos and townhomes as alternatives to single-family-dwellings, record numbers of Victorian are finding themselves thrust into a world of strata minutes, depreciation reports, engineering reports, and in the case of pre-sale properties, developer contracts.

This growing popularity of urban living on southern Vancouver Island has shed light on the critical importance of one aspect of the real-estate industry: contract and strata documentation literacy. 

“Deciphering the documents and understanding the implications of what is being presented is at the heart of a rewarding real-estate purchase,” says Tony Zarsadias, co-owner of Victoria-based Condo Group Real-Estate Team.

“The condo buying process can actually be a little overwhelming, and as a REALTOR® I often see how unprepared some buyers may be when presented with strata documents,” Zarsadias said, adding that this shift in housing focus has increasingly presented REALTORS® with scenarios where lengthy, oftentimes complicated reports accompany a strata property.

Approximately 2,500 condos and townhomes are sold across the region each year through the Multiple Listings Services (MLS), but this year’s frenzy has already pushed total sales to over 2,600-units with four months remaining (sales for September have not yet been published).

Single-family-dwellings, by comparison, represent over 70% more sales activity, and despite the rising popularity of strata residences, the industry – as a whole – has some catching up to do considering a Victoria REALTOR® will sell an average of 1.6 condos annually.

“Fewer than two condos are sold per year, per agent, in Victoria. While that’s not a lot, the good news is that as more buyers shift their focus away from traditional homes and look to condos, so will industry professionals, but this will take time,” Zarsadias says, whose firm typically brokers over 200 strata sales every year.

Zarsadias believes an all-important ingredient of the home buying process is still independent research and the tried-and-true house hunt. Consumers have a wide range of online and traditional resources to assist in narrowing their focus, identifying their budget and selecting an ideal neighbourhood. However, once zeroed in on specific properties, online research can only go so far before a careful building and unit assessment is necessary.

“The key to a condo or townhome purchase is to understand from beginning to end every facet of the depreciation report supplied by the strata. Knowing whether something like a lingering $40,000 per-unit remediation cost is good value in light of the listed price could mean the different between a great deal and a future liability,” he says.

When considering pre-sales, which refers to the sale of units not yet built, correctly interpreting the developer’s contract will make the difference between a smooth possession process and one potentially fraught with several months of unknowns and unexpected costs.

“Developer contracts for pre-sale purchases can be lengthy and complicated, and while they are often worded to benefit the developer, buyers need to understand their rights. If everything is going well, that’s great. But when something goes wrong, buyers need to make informed decisions and that’s when being able to rely on an agent with experience in the pre-sale industry really helps,” Zarsadias says.

And buyers also need to know that what they see online through resources such as MLS may not represent the entirety of available properties.

“Quite a number of strata listings never appear on the MLS. They may be put up for sale conditionally and a buyer would only find out about the home through an agent with ties to the seller. In fact these unlisted sales may often represent real gems that the majority of purchasers will never know about, and we’ve seen more and more sellers utilize this boutique approach to placing their property on the market,” Zarsadias said.

While there's no magic to buying and selling strata properties, Zarsadias is adament that buyers take the time to assess all documents, research the builders, and get a sense of the strata’s maintenance and upkeep regiment.

“It’s hard to go wrong if you follow several basic steps. Do your research, read all documentation presented to you, and when selecting an agent, seek out someone who has experience in the buying and selling of strata properties to ensure you receive the best value for your money.” C

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