Finance with a Leaky Condo?

Leaky Condos – Specific to BC

You can only get financing from banks providing the following documents:

1. An Engineers Report has been completed. (This advises the Strata-Council how much it will cost to repair the unit of the building). The Engineer usually recommends a full fix and a less expensive fix.
2. A "Special Assessment" *1 is the amount charged to each of the strata-unit owners to fix as recommended by the Engineer.
3. A meeting with Strata Council would be called so the above assessment can be voted on and approved. This approval must show in the Minutes of the Meeting, which will have to be sent to the lender for confirmation.
4. Some Lenders my require the 'full fix' to be completed prior to lending in which case a "Certificate of Completion" will be issued.
5. A few Lenders will allow financing if the assessment has been levied and the Strata Council had voted and passed the resolution. Both TD Canada Trust and First National Financial will lend based on this criteria.

Should you require financing prior to any of the above occurring, you will have to contact a Private Lender.

*1. If the cost to fix is $750,000 and currently the Strata Council has $100,000 in their contingency fund, they would deduct $100,000 from $750,000 = $650,000. If there are 50 units in the condo complex, each owner would be given a “Special Assessment” of $13,000.00 to fix the issues. $650,000 divided by 50 = $13,000.00 per unit.