True, it is a seller’s responsibility to disclose certain facts to you, they are called latent defects >>> A latent defect is something that cannot be discerned through a “reasonable” inspection of the property including; a defect that renders the property dangerous, potentially dangerous to occupants, or unfit for habitation. This also includes lack of building permits.

A seller does not have to disclose a patent defect! While some defects could be latent, the courts can rule YOU the buyer, had reasonable opportunity to discover the defect. Example is in a recent article written by Jennifer A Clee for BCREA.
I have included the article below for further reading, but the bottom line is: Make inquiries or take the risk.

___________________________________

February  2012, Article from BCREA:
There have been a number of recent articles on a seller’s obligation to make full and complete disclosure of all issues respecting property offered for sale. What about a buyer’s obligation when purchasing property?
Most licensees are familiar with the doctrine of caveat emptor or ‘buyer beware.’ That maxim holds that a seller has no obligation to disclose patent defects: those discoverable upon a reasonable inspection. However, a seller does have an obligation to disclose latent defects – those not discoverable upon a reasonable inspection – which make the premises dangerous or unfit for habitation. Courts have balanced a seller’s duty to disclose certain facts and to avoid misrepresentation with the buyer’s duty to protect their own interests.
Characterizing a defect as patent or latent is a question of fact requiring consideration of the defect’s nature, its importance to the buyer, and the extent of the inspection and inquiry that would be reasonable in the circumstances to reveal the defect. In determining the applicable standard of care, the court will consider the investigative actions that a reasonably prudent buyer would take in the circumstances. The buyer’s level of sophistication is relevant in determining the standard. Our courts consider that buyers have the primary responsibility for investigating a property they propose to purchase, and
a duty to carefully review all information provided to them regarding the property.
Consider the facts in Creswell Investments Inc. v. Pavone1: a sophisticated commercial buyer purchased a commercial strata unit that had a removable mezzanine installed without the necessary building permit. The buyer’s offer was non-subject and specified that the mezzanine was included. While the seller had completed a Property Disclosure Statement (PDS), which indicated the seller was aware of alterations or additions done without a required permit and referred to the mezzanine, the buyer did not ask for the PDS and thus it was not provided.
Prior to completion, and at his request, the buyer received authorization from the seller to review the property’s city file and received the contact information for the mezzanine manufacturer. The buyer did not follow up in reviewing the file or contacting the manufacturer.
After the sale completed, the buyer discovered the mezzanine did not comply with the building code. The buyer sued the seller for failing to disclose the mezzanine’s status. After dismissing the claims for misrepresentation against the seller, the ultimate issue for the court was whether the mezzanine’s status constituted a latent defect, which the seller was obliged to disclose, or a patent defect.
The court found that the mezzanine did not comply with the fire safety provisions of the building code and this was a latent defect as the premises were potentially dangerous. However, the court concluded that, as the mezzanine’s status could have been discovered by a reasonable investigation by the buyer, the defect was patent.
The court held that a reasonably prudent buyer in the buyer’s position would have made enquiries about the property at the time of his offer and made the agreement subject to being satisfied with the results of those enquiries. The court held that at the very least, the buyer should have requested a copy of the PDS. Had those steps been taken, the buyer would have discovered the mezzanine’s status.
The decision serves as a reminder that while sellers are obliged to make full and complete disclosure of defects not readily discoverable, making the property dangerous or unfit for habitation, buyers are equally obliged to exercise due diligence in investigating properties they propose to purchase. The standard of inquiry will be that of a reasonably prudent buyer in the circumstances.
Jennifer A. Clee
B.A., LL.B.
“Copyright British Columbia Real Estate Association. Reprinted with permission.”
Link to more information about: Property Disclosure Statements (PDS)

All strata complex’s are now required to prepare a depreciation report. This report estimates life expectancy of major items and the cost their replacement or repair. These reports must be available by Dec 2013, and updated every 3 years. This is great news for buyers as it will give you better insight into what has or hasn’t been done and what will potentially need to be done, including costs. The report will also contain, records of repairs, engineers reports, risk management reports, and sanitation reports.

When making offers on condos, make sure your Buyers agent asks for a depreciation report. What do you think about this new information? About time?

Are you moving? Best advice: Don’t procrastinate!

I have moved about 30 times and consider myself a professional in organizing and moving. A recent experience has reminded me that not everyone shares my skill. So I thought I would share some advice. Especially if you haven’t moved in 10 years, and maybe acquired a child or two and a bunch of stuff along the way. Having the right packing materials and a plan make all the difference.

#1 – As soon as you know your moving date call a moving company! They can estimate your move and help pack if necessary. Make all your arrangements with advanced warning and to check up that the company has the right date, address and details. Why? – One time I moved and the company had the wrong date, so I was unable to move on time!

#2 – Start decluttering and throwing out what you don’t need/want. Do this BEFORE you move not at the new home. Have a garage sale if needed. Make 3 piles: keep, throw, donate. Don’t procrastinate! Go through your storage items too. Set time aside.

#3 – Make a time line with check points, and don’t assume you can just pack up on the day of moving. If you have a lot of stuff and lived in the same home for years, it WILL take you a few days to go through everything!

#4 – Start collecting boxes and packing materials: Boxes of different sizes (small boxes for heavy items such as books, canned goods) Packing tape, news print for dishes. You can alternatively purchase these things from a moving company like Uhaul. Large Heavy duty garbage bags called “contractor” bags are great for linens, clothing, pillows etc. They are available at most hardware stores. TIP: you can find cheap or free boxes on Craigslist or freesell.

#5 – The first things you should pack would be items you don’t use, like the stuff in the back of your closets. Arrange space in your home to stack boxes. And think about what you will need a day or two before, during, and after a move and make sure those items are packed separately and kept close at hand.

A great website which includes a moving schedule is: Move In and Out.com
You can also watch this short Royal LePage Video: Moving Tips

Moving across Canada, or nationally? A great company is Bandstra Moving Systems (a member of United) – winner of the 50 best managed companies. Contact Barbara Poltak for an estimate: www.bandstra.com

All BC homes built by licensed builders have mandatory third-party home warranty insurance, known as the 2-5-10 year home warranty. This coverage includes: 2 years on labor and materials, five years on the building envelope, including water penetration, and ten years on the structure.

You can search new homes under construction by civic address and this is good for single family dwellings, and multi unit residential. You can also search by builder name or company name to see if they are in good standing.

The HPO is responsible for programs that protect the home buying public in BC and for research and education. Visit the HPO website: www.hpo.bc.ca or call 1-800-407-7757.

Talk with your Realtor if you are purchasing a new home and make sure you are buying a home legally offered for sale.

According to the information I have through my industry, the government is planning to restore the PST 7% by March 13, 2013. Details of how this transition will be made, will be coming to light over the next few weeks and months, and I will continue to make updates here.

Fill Valve & Flapper

Ok, for all you single ladies out there like me, I found this excellent video on how to fix a toilet. VIDEO CLIP. It works. I just finished my first one yesterday and have the supplies for the second. OK, first, this is for older units like mine is 20 years old and needed the tank “guts” replaced. Called a fill valve and flapper. This is usually what needs replacing. I replaced my fill valve with a more modern version (no round float balloon). I Picked it up at Rona, just the two pieces – fill valve and flapper – came to: approx. $24.00 after tax. See picture.

Crescent Wrench

A plumber would charge you $200! I know cause I had my 3rd toilet done 2 years ago. Really it doesn’t take much but you do have to have a crescent wrench. (Cost $24.63 after tax for the 10inch) See picture.

How do you know if you need to replace these items? Good question, when your flapper no longer goes down on it’s own and your toilet “runs on” so your sticking your hand in there all the time. Or when your toilet makes hissy noises, spits water out of the fill valve, makes a mess, is 20 years old and is just a pain in the @$$.

I replaced my supply lines two years ago so didn’t need to do them like the video said, but hey it’s a great idea. Saves on flooding! (one of mine broke about a year ago and flooded the bathroom) Supply line… maybe $10-$12 bucks.

PS, always bring your patience when you fix anything using tools and don’t forget to throw in a few bucks for the chocolate you will reward yourself with after.

Let’s first discuss the difference between a court ordered sale and foreclosure.
Most property will be listed as a court ordered sale – This means that the courts have “ordered” the sale, that is, they have given the right to someone (usually the lender/mortgage holder) to list and sell the property. This could be for several reasons, a dispute among owners, divorce, death of one or more of the owners, and a court ordered sale also includes Foreclosures – A foreclosure is specifically where the borrower (home owner) has defaulted on paying the mortgage.

The process: Generally – Offers are sent to the lawyer for the Lender/Mortgage holder. They are submitted “subject free”. So as a purchaser you would make an offer as normal – you would go about removing your subjects (Arranging financing, inspections, etc) One thing to remember is you are buying the property “As Is”. Once the lender approves the offer (or offers – a lender may approve several offers) the Court date will be set. Your offer price will now be available for everyone to see. And potentially out bid.

On occasion there could be several offers or someone who arrives at court with an additional offer. If this happens the courts will ask everyone to re submit their offer in a sealed envelope and the sale will be awarded to the highest bidder. This happens at the courts, on the day of your court date, so you should be ready. You do not get the chance to negotiate. It’s a one-time occurrence.

For first time buyers, you need to understand if you get out bid in court you will be back at square one, and will not be compensated for time loss or costs such as inspection. Another point to consider for first time buyers looking at purchasing a court ordered sale is the home is “AS IS” and it is very important to have a thorough inspection done. If you have specific needs or specific time line to get into your home, you might want to consider other property.

Please feel free to contact me for a list of current Court Ordered Sales. I would be happy to find you the right property.

Have you purchased a foreclosure property? Have a story to share? Leave a comment, We would love to hear your story good or bad.

Are you doing the right thing? Most people don’t wake up one morning and list their home without a reason; usually there has been considerable thought or a build up of a situation that results in the wise choice… “Let’s sell”. It’s easy to say “relax” but difficult to do.

Best advice to ease up on the stress is this:

1. Commit to the decision of selling and don’t fight it. Pack some items ahead of time so you will be ready and not so much to do when the time comes.
2. Plan, plan, plan. Take the time to plan your move, talk with your realtor and get advice on what is the best plan for you. Set realistic goals for timing.
3. Price realistically – if you don’t and your home sits on the market for a long time, this will add to your stress – no showings, too many ongoing showings – having to keep your place neat & tidy, stressing out over no offers, or time taking too long
4. Do you need a quicker than average sale? Get help! Help & recommendations from your realtor, Home Stagers, whatever it takes, ask for and be receptive of help to make the sale work for you. If you need to know your house is going to sell quickly, price accordingly.
5. Do you need a lot of notice for showings? – Work out the details of how showings will go, so you will be at better ease. Do your best to be accommodating and work with your realtor to reduce stress. Best case is always to be gone for the showing. This way there will be no confrontation or uncomfortable feelings as buyers/realtors comment and work through your home.
6. Don’t leave things for the last minute, often when financial crisis strike, the reality of a situation can be overwhelming. Let your Realtor know if you are worried about a pending foreclosure and they can help move things along to prevent your situation from getting worse. There’s no shame, it can happen to anyone and Realtors have usually seen it all.
7. Do you have time requirements? Are you moving because of a transfer, a baby on the way, or need to start your children in the next school year? Work with your realtor and be realistic so you don’t end up paying for two mortgages. Check #2 – Plan – set realistic goals.

1. Be neat – Keep your home “ready”, remember you are selling a dream.

2. Be Obliging – Remember someone will always want to vie your home on short notice. Keep your home ready for showings while on the market. Try to make things ready before you leave in the morning. You just never know when that one “right” buyer will want to drop in.

3. Turn on all the lights – if you know you are having a showing – turn on all the lights!

4. Odors – Keep your home smelling fresh, use air fresheners, (but not too heavy) watch for cigarette smoke odors & pet odors and especially cooking odors right before showing time. Brew coffee or simmer cinnamon sticks.

5. Music – soft music in the background is great, but be careful not too loud to drown out the realtor and buyer. Music is great if you are selling a condo. We all know condos involve living in smaller spaces and usually we hear our neighbors from time to time. Playing music will give the buyer a realistic experience; with no music the buyer may be distracted by other noises in the building.

6. Lit fireplace – Makes for a warm and friendly inviting experience. Remember your selling emotion as much as you are selling your property!

7. Heating/cooling – keep the heat on! Buyers don’t like to linger in a cold home. In the summer the reverse is true, if you have air-conditioning, keep it on. Make your home comfortable, a place where buyers want to stay and not run from.

Remember you want top dollar for your home right? These are great tips that will aid in the sale of your home. If you are thinking of selling and would like some specific tips, let’s talk.

Core Facts:
Fraser Valley combined:
April had 5% more active listings for buyers to choose from.
April had 2918 new listings processed
April’s Benchmark Price – Homes: $525,510
April’s Benchmark price – Townhomes: $332,992
April’s Benchmark price – Condos: $252,689
April’s Sales: 1,516

Quotes: From Sukh Sidhu, New President of the Fraser Valley Real Board.

Sukh Sidhu, Board president, explains: “April’s sales are pretty typical for that month over the last two decades with the 20-year average being 1,580, but softer than what we saw earlier this year. “The Fraser Valley market was busier than normal in February and March due in part to the tighter credit conditions that kicked in on March 18, plus you add into the mix a focus on the federal election and you get an April that trends back to normal conditions.”

However, Sidhu says certain individual markets within Fraser Valley have remained active. “For the third month in a row, sales of single detached homes in White Rock/South Surrey have accounted for almost a quarter of all detached sales in the region compared to the 15 per cent share that area typically garners.”

Links:

Full Stats Package (Fraser Valley)