Anyone knows about new condo conversion?

[suzy]

Hi guys,

I am making 3 offers on a building that is being converted. Though the sellers told me that the building is already converted, I just learnt today during this due diligence stage, that the reserve fund study and other condo documents are just being drafted and not finalized yet. Is this an alarming sign? Should I stay away from this situation? What should I worry about in a condo conversion scenario? What should I do to cover myself should I decide to go ahead with the purchase?

Thank you very much in advance for your answers!

Suzy

 

[GarthChapman]

Hi Suzy,



I searched and found this post that should help you out.

http://myreinspace.com/rein_members_only/Members-Only_Discussion/81-14763-Condo_Conversion.html



Regards,

 

[suzy]

Thanks so much Garth for all your answers! Sue




QUOTE (GarthChapman @ Dec 3 2007, 08:26 PM)
Hi Suzy,



I searched and found this post that should help you out.

http://myreinspace.com/rein_members_only/Members-Only_Discussion/81-14763-Condo_Conversion.html



Regards,

 

[mikecunning]

QUOTE (suzy @ Dec 3 2007, 06:24 PM)
Hi guys,



I am making 3 offers on a building that is being converted. Though the sellers told me that the building is already converted, I just learnt today during this due diligence stage, that the reserve fund study and other condo documents are just being drafted and not finalized yet. Is this an alarming sign? Should I stay away from this situation? What should I worry about in a condo conversion scenario? What should I do to cover myself should I decide to go ahead with the purchase?



Thank you very much in advance for your answers!



Suzy




Hi Suzy:



It may just be a confusion over terminology...someone may mean that a building is converted IF condo titles have been put in place where previously only one title existed. Surveyors, Reserve Fund Planners and Lawyers are all busy so if one piece of the puzzle does not fall into place at one particular time it is not necessarily a Red Flag.



Many people place condo titles on their buildings because of a concerns about one's ability to do so in the future...i.e. in BC it is extremely difficult to do a condo conversion...assuming you are purchasing the building for a long term hold, if the reserve fund is complete, it is handy, however, it is only good for five years so this should not affect your ultimate buying decision. Condo bylaws etc., can be drawn up in an afternoon at the lawyers so this is probably not a time sensitive item.



Good luck



Mike