It’s been a long time since I’ve collapsed a deal, in fact, I can’t remember the last time it happened.
Every home has its scabs. Something broken, misrepresented or issues all parties may have originally been unaware of. Typically though, everything ends up working out just fine for both the Buyer and the Seller. Many things are easily fixed with either a little bit of sweat equity, money or just some simple context to put everything into perspective for all parties involved.
This time was different.
In this case, it was related to a brand new construction strata condo where the further I looked into it, the more I disliked it.
The story goes like this.
Excited Buyer finds a brand new home and is thrilled. It is perfect, is move-in ready, nothing to do but move in and enjoy.
Like any good real estate sale however, I insist we need to do our due diligence to make sure my buyer knows exactly what they are buying.
Interestingly enough, this brand new building is completed with people already living in it. The unit we are looking at is being offered by the developer still, able to sell it in the pre-construction phase. Weird right? Maybe just a nature of a slowing real estate market we thought.
It all began with a set of strata minutes I was reviewing with a very innocent comment in it.
“Council decided next steps should await completion of engineering report.“
Odd for a new building to be waiting for an engineering report so quickly. I immediately requested any engineering report that may have been done from the selling party.
The report was scary. Deficiencies related to fire safety, high potential for water ingress with both the roof and sides of the building and more.
A comment was made that the 2-5-10 New Home Warranty would cover these issues by the other party, but not so fast. I have been around for a while now.
I decided to go deeper.
Here is what I found out
Here is are the key points in the email I sent my clients immediately.
At this point, I would again suggest that you engage in legal advice on how to proceed with this purchase. You will need to engage a lawyer for the conveyance of both properties anyways, so it may be a good time to speak with someone starting today if you are dead set about proceeding.
There is a lot of unknowns here and I am feeling as though I am at the end of the amount of information I can get you. I know you really like this building for various reasons, however, you need to be prepared if you choose to move forward with it that there could be a lot of unknown and that you may end up getting stuck with a bill at some point, and a ton of unneeded headaches.
So what happened?
My Buyers decided to walk. They will not be buying in this building. Too bad too.
Everything seemed perfect. A great location, a nice shiny new building with attractive finishings, and all at a great price. The Buyers were upset, yet they were also very grateful.
You see, these wonderful people need every dollar to be used wisely. Like most of us, they can’t afford to adopt unforeseen expenses that could literally sink most families financially. In this case, they had to let their head overtake what their heart was telling them to do. And they made the right decision.
Other real estate professionals may have caught the same information I did, I hope all would have in fact. I don't know that I am anything special when it comes to investigating a property, there are many great REALTORS® and colleagues of mine out there helping Buyers and Sellers every day.
The point is, hiring a professional (in any capacity) you can trust, someone who will always do the right thing and treat their clients' money like it is their own? That is a relationship worth its weight in gold and a role for my clients I am proud to be a part of.
Until next time,