My Free House & Condo Buying Service
It's important to me to deliver an exceptional home buying experience to each of my clients that I'm fortunate enough to work with. Here is a general overview of some of the services I provide to my cllients.
Meet with you to conduct a "needs assessment" to ensure we understand your needs
Provide you with a copy of our FREE Home Buyer's Guide
Answer any questions that you might have about the buying process
Assist you in obtaining a mortgage pre-approval at the best possible terms
Subscribe you to our New Listing Update Service
- Show you those homes that interest you
Assist you in selecting the home that best meets your needs
Assist you in preparing an offer that protects your interests and your deposit
Recommend offer conditions that are most appropriate for you
Safeguard your deposit in our company trust account
Fully explain all terms and conditions to you
Fully explain your responsibilities under the agreement
Fully explain the seller's responsibilities under the agreement
Fully explain what is included in the purchase and what is not
Represent you in negotiations to obtain the best possible price and terms
Obtain a Property Condition Disclosure Statement from the seller, if available
Assist you in hiring a building inspector that will thoroughly inspect the home
Assist you in obtaining final mortgage approval on the home you select
Assist you in removing conditions from your offer to purchase
Assist you in selecting a real estate lawyer to close the purchase
Convey all documents and final instructions to your lawyer
Provide you with a checklist of things to do between this point and possession
Conduct a final walk through with you at possession to ensure everything is in order
Provide you with the keys to your new home
Remember, it cost you nothing to be represented by your own buyer’s agent with full fiduciary duties to you. 100% of the commission’s payable is agreed upon by the seller prior to listing their home. This also includes most new House & Condo construction as well. Make sure a committed experienced professional is looking out for your best interests.
The Agency Relationship
The Buyer's Agent is obligated to protect and promote your interests. Specifically, the Buyer's Agent owes you the fiduciary duties of loyalty, obedience, confidentiality, reasonable care and skill, full disclosure, and full accounting.
As required by the Real Estate Council of Alberta's Code of Conduct, a real estate brokerage (including its broker, associate brokers, and agents) must only act for one party in a transaction, unless there is full disclosure to all parties, and the dual agency is agreed to in writing. The client must fully understand the implications of dual agency and give an informed consent in writing prior to entering into a real estate transaction.
When choosing a home you must consider the following:
The Neighborhood
- Location.
- Appearance.
- Current residents (similar or dissimilar occupational and social interests).
- Whether area is appreciating or depreciating in value.
- Safety and security.
Accessibility
- Convenience to work, shopping areas, school, and church.
- Good roads and streets.
- Available public transportation.
Community Facilities
Police and fire stations. Health and sanitation services. Schools and churches. Recreational facilities, such as parks.
Family Values
- Appearance.
- Size versus amenities.
- Special features your family needs.
Costs
- Within your price range.
- Cost of money (both interest rate and terms of mortgage).
- Tax benefits.
- Energy costs.
What is a Condominium?
A “condominium” typically refers to a form of legal ownership, as opposed to a style of construction. Condominiums are most often thought of as high-rise residential buildings, but this form of ownership can also apply to townhouse complexes, individual houses and low-rise residential buildings. Condominiums are also known as strata in British Columbia or syndicates of co-ownership in Quebec.
Condominiums consist of two parts. The first part is a collection of private dwellings called “units”. Each unit is owned by and registered in the name of the purchaser of the unit. The second part consists of the common elements of the building that may include lobbies, hallways, elevators, recreational facilities, walkways, gardens, etc. Common elements may also include structural elements and mechanical and electrical services. The ownership of these common elements is shared amongst the individual unit owners, as is the cost for their operation, maintenance and ongoing replacement. Each unit owner has an undivided interest in the common elements of the building. This ownership interest is often referred to as a “unit factor”. The unit factor for any particular unit will generally be calculated in proportion to the value that the unit has in relation to the total value of all of the units in the condominium corporation. The unit factor will tell you what your ownership percentage is in the common elements and will be used in calculating the monthly fees that you must pay towards their upkeep and renewal.
The creation of a condominium is regulated by provincial or territorial condominium legislation and municipal guidelines. It can be created in many different ways. In some provinces, a developer, or other interested party, may register a declaration to create a condominium, while in others, an application may be made to have title issued for the units pursuant to an “approved plan of condominium.” The operation of condominiums is also governed by provincial or territorial legislation and the condominium corporation's own declaration, by-laws and rules.
Once a condominium corporation has been established, a Board of Directors, elected by, and generally made up of, the individual condominium owners, takes responsibility for the management of the corporation's business affairs. There is usually a turnover meeting where this transfer of responsibility takes place. Each unit owner has voting rights at meetings. Your voting rights will generally be in proportion to your unit factor.
What Types of Condominiums Are There?
Residential condominiums can be high-rise or low-rise (under four storeys), town or row houses, duplexes (one unit over another), triplexes (stack of three units), single detached houses, stacked townhouses or freehold plots. There are even mixed-use condominiums that are partly residential and partly commercial buildings. They come in various sizes with diverse features and they can be found in almost every price range.
What Do I Own When I Buy a Condominium?
When you buy a condominium, you own your unit, as well as a percentage of the common property elements allocated to the unit. The boundaries of each individual unit and the percentage of common elements you own may vary from condominium to condominium, depending on how they are specified in the condominium's governing documents. Sometimes, the unit boundary can be at the backside of the interior drywall of the unit’s dividing walls. Alternatively, the unit boundary can be the centre line of the unit’s walls. The boundaries of your condominium unit are an important consideration at the time of purchase— particularly if alterations and renovations are a potential part of your purchase plan.
The unit typically includes any equipment, systems, finishes, etc. that are contained only in the individual unit. The right to use one or more parking spots and storage areas may be included. While you may have exclusive access to parking spot or storage area, you seldom actually own the space itself. For a freehold condominium (or a bare/vacant land condominium), the unit may be the entire house including the exterior walls, the roof and in some cases, the land surrounding the structure. Prior to making a purchase, you may wish to hire a professional surveyor to review the site plan for the condominium corporation so you know exactly where you unit’s boundaries lay.
Components of building systems that serve more than one unit, such as structural elements and mechanical and electrical services, are often considered part of the common property elements, particularly when they are located outside of the unit boundaries specified in the condominium’s governing documents.
There may be some parts of the condominium complex that are called “exclusive use common property elements.” They are outside the unit boundaries, but are for the exclusive use of the owner of a particular unit. Balconies, parking spaces, storage lockers, driveways and front or rear lawn areas are common examples of exclusive use common property elements. It is important to be aware of any exclusive use common property elements before you make an offer to purchase a condominium. While these spaces are exclusive to your use, there may be restrictions on how and when you use them. For instance, you many not be able to park a boat, RV or commercial vehicle in your assigned parking spot. There may also be restrictions on what you can place on your balcony.
Additional General Condominium Info
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Annual General Meetings (AGM) |
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Once a year, within 15 months of the last, a condominium board is required to convene an Annual General Meeting of unit owners. At the meeting, the retiring board provides owners with operational and financial reports for the year past. Owners then elect a new board, and deal with any unfinished and new business, including (if required) appointment of auditors. |
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Bareland Condominium |
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In traditional condominium, both the master lot and the walls and roof of buildings are common property. Today, many townhouse and villa communities are developed as bare land condominium in which the private structures lie completely within the unit boundaries, and only the land is condominiumized. |
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Condominium Plan |
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Every condominium community has a plan, registered at a land titles office, that provides unambiguous definition of the perimeter of the master lot, the location of buildings (if any), unit boundaries, and the unit-factor distribution. The document replaces the original single title with unit titles. |
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Condominium Property Act |
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The name of the Alberta statute that supports, directs, and regulates condominium ownership. Since provinces have jurisdiction over land titles, each has its own condominium legislation. Fundamental concepts are essentially similar. However, from one province to another, legislative scope and administrative technicalities may vary significantly. The Act, which must be passed into law by the provincial legislature, articulates legislative concepts and cornerstone provisions. |
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Reserve Fund |
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A fund of money set aside to provide for the repair and replacement of major parts of the common property. Officially termed the Capital Replacement Reserve Fund, it is usually held in secure, fairly liquid investments, and is not intended to be used to cover regular or annually recurring maintenance. |
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Reserve Fund Study |
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The purpose of a reserve fund study is to inventory the depreciating common and corporate property needing to be repaired or replaced within the next 25 years, assess the present condition, estimate when each component of the depreciating property will need to be repaired or replaced, and estimate the costs of repairs to and replacement of the depreciating property. |
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Reserve Fund Report |
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Once completed, the person who carried out the Reserve Fund Study must prepare and submit to the Board a written report setting out the qualifications and independence of that person, the findings of the study, and any other matters that are considered relevant. |
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Reserve Fund Plan |
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The condominium board must, after receiving and reviewing the reserve fund report, approve a reserve fund plan under which a reserve fund is to be be established, if one has not already been established, and set forth the method of amounts needed for funding and maintaining the fund. The corporation must provide the owners with copies of the approved reserve fund plan prior to the collection of any funds. |
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Special Resolution |
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Important community decisions such as enacting or amending bylaws, or transferring or leasing common property, require a resolution passed a a properly convened general meeting by a majority of not less than 75 per cent of all persons entitled to vote and representing not less than 75 per cent of the total unit factors for all units. Alternately, without a meeting, unit owners representing the same majorities may agree in writing to the special resolution. |
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Special Assessment |
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If sizeable repair or replacement expenditures are urgently required, and sufficient funds are not available in the reserve fund, the condominium board has little choice but to levy a special assessment. As would be the case with traditional house, unit owners are required to come up with the cash necessary to rectify the problem. |
Glossary of Terms
AMORTIZATION -- The number of years it takes to repay the entire amount of a mortgage.
APPRAISAL -- An estimate of a property's market value, used by lenders in determining the amount of the mortgage.
APPRECIATION -- The increase of a property's value over time.
ASSESSMENT -- The value of a property, set by the local municipality, for the purposes of calculating property tax.
ASSUMABLE MORTGAGE -- A mortgage held on a property by the seller that can be taken over by the buyer, who then accepts responsibility for making the mortgage payments.
BLENDED MORTGAGE -- A combination of two mortgages, one with a higher interest rate than the other, to create a new mortgage with an interest rate somewhere between the two original rates.
BLENDED MORTGAGE PAYMENTS -- Equal or regular mortgage payments, consisting of both a principal and an interest component. With each successive payment, the amount applied to interest decreases and the amount applied to the principal increases, although the total payment doesn't change. (Exception: see Variable-Rate Mortgages)
BUY-DOWN -- When the seller reduces the interest rate on a mortgage by paying the difference between the reduced rate and market rate directly to the lender, or to the purchaser, in one lump sum or monthly installments.
CLOSED MORTGAGE -- A mortgage that cannot be prepaid, renegotiated or refinanced during its term.
CLOSING -- The real estate transaction's completion, when the parties involved agree that all legal and financial obligations have been met, and the deed to the property is transferred from the seller to the buyer.
CLOSING COSTS -- Expenses in addition to the purchase price for buying and selling a property.
CLOSING DATE -- The date on which the title and keys to the property are transferred from the seller to the buyer, and the money is paid.
COMMON ELEMENTS -- The portions of a condominium development owned in common (shared) by the unit owners.
CONDOMINIUM -- Shared ownership in property. Owners have title (ownership) to individual units and a proportionate share in the common elements.
CONVENTIONAL MORTGAGE -- A first mortgage issued for up to 75% of the property's appraised value or purchase price, whichever is lower.
COUNTEROFFER -- One party's written response to the other party's offer during negotiation of a real estate purchase between buyer and seller.
DEBT SERVICE RATIO -- The percentage of a borrower's gross income that can be used for housing costs, including mortgage payment and taxes. (and condominium fees, when applicable)
DOWN PAYMENT -- The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.
EASEMENT -- A legal right to use or cross (right-of-way) another person's land for limited purposes. A common example is a utility company's right to run wires or lay pipe across a property.
ENCROACHMENT -- An intrusion onto an adjoining property. A neighbour's fence, storage shed, or overhanging roof line that partially (or even fully) intrude onto your property are examples of encroachments.
EQUITY -- A homeowner's financial interest in a property. The difference between the value of the property and the amount owing (if any) on the mortgage.
ESTOPPEL CERTIFICATE -- A written statement of a condominium unit's current financial and legal status.
FIRST MORTGAGE -- The first security registered on a property. Additional mortgages secured against the property are "secondary" to the first mortgage.
FORECLOSURE -- A legal process by which the lender takes possession and ownership of a property when the borrower doesn't meet ("defaults on") the mortgage obligations.
HIGH-RATIO MORTGAGE -- A mortgage for more than 75% of a property's appraised value or purchase price.
INTEREST -- The cost of borrowing money.
JOINT TENANCY -- A form of ownership in which two or more individuals (often spouses) have an equal share in the ownership of a property. In the event of one owner's death, his or her share is automatically transferred to the surviving owner(s), apart from the deceased's will.
LEVERAGE -- Controlling a large asset with a relatively small amount of cash. In real estate, $25,000 down payment (or less) can be used to purchase (control) a $100,000 home, for example.
LIEN -- Any legal claim against a property, filed to ensure payment of a debt.
LISTING AGREEMENT -- The contract between the listing broker and an owner, authorizing the REALTOR to facilitate the sale or lease of a property.
LISTING BROKER -- The REALTOR who signs a contract with an owner to sell the property.
MAINTENANCE FEE -- A monthly fee paid by condominium owners for maintaining the development's common areas.
MORTGAGE -- A contract between a borrower and a lender. The borrower pledges a property as security to guarantee repayment of the mortgage debt.
MORTGAGE BROKER -- A licensed individual who, for a fee, brings together a borrower in search of a mortgage and a lender willing to issue that mortgage.
MORTGAGEE -- The lender.
MORTGAGE INSURANCE -- Government-backed or privately-backed insurance protecting the lender against the borrower's default on high-ratio (and other types of) mortgages.
MORTGAGE LIFE INSURANCE -- Insurance that pays off the mortgage debt, should the insured borrower die.
MORTGAGE PAYMENT -- The regular installments made towards paying back the principal and interest on a mortgage.
MORTGAGE TERM -- The length of time a lender will loan mortgage funds to a borrower. Most mortgage terms run from six months to five years, after which the borrower can either repay the balance (remaining principal) of the mortgage, or renegotiate the mortgage for another term.
MORTGAGOR -- The borrower.
MULTIPLE LISTING SERVICE® (MLS®) -- A system for relaying information to REALTORS about properties for sale.
OPEN MORTGAGE -- A mortgage that can be prepaid or renegotiated at any time and in any amount without penalty.
PARTIALLY OPEN MORTGAGE -- (Also called a "partially closed" mortgage.) Allows the borrower to prepay a specific portion of the mortgage principal at certain times with or without penalty.
PORTABILITY -- A mortgage feature that allows borrowers to take their mortgage with them without penalty, when they sell their present home and buy another one.
PREPAYMENT PRIVILEGE -- A mortgage feature that allows the borrower to prepay a portion or all of the principal balance with or without penalty. This privilege is frequently restricted to specific amounts and times.
PRINCIPAL -- The mortgage amount initially borrowed, or the portion still owing on the mortgage. Interest is calculated on the principal amount.
RATE (Interest) -- The return the lender receives for advancing the mortgage funds required by the borrower to purchase a property.
REALTORS -- Real Estate Professionals who are members of a local real estate board and the Canadian Real Estate Association. Only these professionals can call themselves REALTORS.
REFINANCING -- The process of obtaining a new mortgage, usually at a lower interest rate, to replace the existing mortgage.
RESERVE FUND -- The portion of a condominium maintenance fee that is set aside to cover major repair and replacement costs.
SECOND MORTGAGE -- A second financing arrangement, in addition to the first mortgage, also secured by the property. Second mortgages are usually issued at a higher interest rate and for a shorter term than the first mortgage.
SECONDARY FINANCING -- Second, third, fourth, etc. mortgages, secured by a property "behind" the first mortgage.
TAKE-BACK MORTGAGE -- See Vendor-Take-Back Mortgage
TERM -- See Mortgage Term
TITLE -- The legal evidence of ownership of a property.
TITLE SEARCH -- A detailed examination of the ownership documents to ensure there are no liens or other encumbrances on the property, and no questions regarding the seller's ownership claim.
UNIT -- Term used to describe the individual home or apartment held by the owner within a condominium development.
VARIABLE-RATE MORTGAGE -- A mortgage for which payments are fixed, but whose interest rate changes in relationship to fluctuating market interest rates. If market rates go up, a larger portion of the payment goes to interest. If rates go down, a large portion of the payment is applied to the principal.
VENDOR-TAKE-BACK MORTGAGE -- When sellers use their equity in a property to provide some or all of the mortgage financing in order to sell the property.
WEEKLY PAYMENTS -- Mortgage payments made weekly or 52 times per year.
ZONING REGULATIONS -- Strict guidelines set and enforced by municipal governments regulating how a property may or may not be used.
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