Leaky Condo: $78K - $200K assessment (split from the Realtor 1 subforum)

[COGENT]

Originally Posted by Realtor 1

Marda Loop area??? lol???

Close... Sun Alta

[Bigtime]

I just drove by this building this morning and wondered what was up. At first I thought I was totally out of the loop and this was a new building going up, the repairs pretty much look like a full build construction job.

I too know the pain of dealing with a new building with deficiencies and a developer that went bankrupt shortly afterwards. New Home Warranty is like trying to get blood out of a stone. I left the condo board after that first year (my illustrious accomplishments included raising condo fees by 23% and a special assessment to complete construction items on the building) and I am pretty sure there are still items that the board continues to try and chase the money down for, while at the same time getting the work done so as not to affect the building in a negative way.

[Slava]

Originally Posted by WilsonFourTwo

As a condo owner, this is my number one fear.....even more than Carnival Folk.

Insurance covers fire, theft, vandalism (etc), but builder incompetence and negligence isn't something you can prepare for.

Thats not totally true. In a number of condo policies there are actually provisions for special assessments. You might have coverage for a portion (or unfortunately none at all), but its obviously worth a look to see if you are on the hook for that kind of money.

In that case the insurer would also try to subrogate against the contractor/developer.

[AMG_G]

Anyone have any details on The Solarium building on Center Street south? It has been covered in orange tarp for the last few years.

[Bigtime]

Originally Posted by AMG_G

Anyone have any details on The Solarium building on Center Street south? It has been covered in orange tarp for the last few years.

Not too sure, I just assumed they were re-doing the stucco on the building.

[Knut]

I ran into a special assessment 2 months after I bought a Condo. Luckily it was only about $3500. I had a lawyer read over the condo documents and assumed i was covered when they said there was no special assessments coming, or any issues they could see. I guess I should not have been so lazy and actually read the part of the minutes where they talked about a leaky roof. Basically our condo board was told that it was not worth it to pursue legal means as the legal costs would end up being more than the costs of the assessments.

[Winsor_Pilates]

Brutal, feel horrible for these owners. I wonder if this building even had a new home warranty when it was first built.

Implementing mandatory warranties is a good first step for Alberta, but the warranty coverage itself needs to become more comprehensive and longer term.

Contributions to the contingency fund by developer's should be mandatory too for the first year of the building to get things going.

[FlameOn]

How is it that warranties for new homes and condos are only a year or so now? For homes, many of the issues aren't going to crop up until years down the road. I seem to remember my parent's first house had something like a 5 year warranty when they bought here like 30 years ago... Or am I mistaken?

[Knut]

Could they not be mandated to provide a letter of guarantee up to a certain amount (eg. 100,000) per property. Once the reserve fund reaches that amount the company will get the money back with interest.

Or... is that illegal somehow

[Knut]

Originally Posted by FlameOn

How is it that warranties for new homes and condos are only a year or so now? For homes, many of the issues aren't going to crop up until years down the road. I seem to remember my parent's first house had something like a 5 year warranty when they bought here like 30 years ago... Or am I mistaken?

Usually there is a 5 yr warranty from structural damage, but only a 1 year builders warranty

[Cowboy89]

Originally Posted by fotze

Their website verbaige certainly looks like english was an afterthought, not that there is anything wrong with that. The power word mumbo jumbo is through the roof.

What a load of horse@#$%:

We’ve made our special mark by being innovative, progressive in our approach, and passionate about excellence....All of our properties are rich in style and well-known for their innovation and vision as they are created by using state-of-the-art Architectural and Engineer firms.

I know I am very passionate about the field of excellence.

One key selection creteria for purchases I make is excessive use of superlatives in marketing materials = no sale. Quality stuff sells itself.

[sworkhard]

Originally Posted by Hesla

Usually there is a 5 yr warranty from structural damage, but only a 1 year builders warranty

This, although there are some companies that offer a 10 year structural warranty and 2 year builders warranty. It's not there to protect against things gone wrong as much as manufacturing/building defects, etc. If your kitchen tap goes shot in year 4 your on the hook for it, but if your getting frost in the corner of your ceiling on a cold day a year or two down the road, a good contractor will fix it.

[WilsonFourTwo]

Originally Posted by fotze

Condos sound awesome.

Pros and Cons.

Special assessments being an (obvious) huge Con.

[Mass_nerder]

Originally Posted by Hesla

I ran into a special assessment 2 months after I bought a Condo. Luckily it was only about $3500. I had a lawyer read over the condo documents and assumed i was covered when they said there was no special assessments coming, or any issues they could see. I guess I should not have been so lazy and actually read the part of the minutes where they talked about a leaky roof. Basically our condo board was told that it was not worth it to pursue legal means as the legal costs would end up being more than the costs of the assessments.

I'm in a similar situation right now...I was pretty bummed, but after seeing stuff like this, I think I'm actually pretty lucky.

[afc wimbledon]

Would never buy a condo or a townhome, if you don't own the dirt it stands on you don't own a thing.

[Mass_nerder]

When the market comes around to a point where it makes sense to sell my condo, that will be the end of condos for me.
It's great to be able to get closer into the city, in a more desirable area, for a lower price, but when your 'home' value relies closely on upkeep you have no control over, and you're paying 1/3 of your mortgage payment in condo fees monthly, is the cost really worth it?

[Bill Bumface]

Originally Posted by fotze

Condos sound awesome.

Meh, my house has had about $20K in it's own "Special assessments" in the last 2 years.

The biggest thing I hated about owning a condo was not being in control and relying on the useless property manager to manage any work that needed to be done.

Originally Posted by afc wimbledon

Would never buy a condo or a townhome, if you don't own the dirt it stands on you don't own a thing.

You own a share in the dirt that it stands on. There is still land value in a condo, just a very reduced portion.

[Heckubus97]

Originally Posted by AMG_G

Anyone have any details on The Solarium building on Center Street south? It has been covered in orange tarp for the last few years.

I heard that this building has a problem with moisture getting inside the exterior walls. I could not imagine not being able to see out of my windows for over a year.

[BurningYears]

Originally Posted by hulkrogan

Meh, my house has had about $20K in it's own "Special assessments" in the last 2 years.

The biggest thing I hated about owning a condo was not being in control and relying on the useless property manager to manage any work that needed to be done.



You own a share in the dirt that it stands on. There is still land value in a condo, just a very reduced portion.

There is a thing you can do, get voted on to the condo board, then you are in control well you and 5 other people of the various ongoings in the building, where money should be allocated and who manages/fixes troubles.

[bizaro86]

Originally Posted by afc wimbledon

Would never buy a condo or a townhome, if you don't own the dirt it stands on you don't own a thing.

The owners of a condo own the land in proportion to their overall interest. So if your unit has 1/20th of the unit factor in the building, you own 5% of the land. There is an argument to be made that 1/20th (or whatever) of a lot in the inner-city might be a better investment than 100% of a lot out in the burbs that was recently converted from farmland.