Good for the Buyer...or Is it?
With the rising cost of real estate in Calgary, it's no wonder that condominiums have become increasingly popular in the last year. In November alone, sales from Calgary condos and townhomes showed a 20% increase.
The benchmark price for a Calgary condominium is $300,700 compared to $279,600 in November 2013. Even with rising prices, a condo is still the most affordable alternative for many trying to get a foothold in the Calgary real estate market.
In an effort to continue the momentum and protect buyers in this booming market, the Alberta government is looking at introducing a new legislation - Bill 9 - the Condominium Property Amendment Act. This includes about 50 amendments to the condominium property laws in an attempt to fill the gaps for consumer protection.
Key Points of Proposed Amendment
Some of the key points include:
- Increased information disclosure such as warranty information, occupancy dates
- More protection for buyer's deposits, ensuring that funds are deposited with an authorized trustee
- Builders have to pay condo fees for unsold units
- Improved board and voting procedures that provides for more accountability
- Advance notice for annual general meetings
- Harsher penalties for board infractions
What Does This Mean to the Consumer?
This is great for all condo owners affected. Having the builder pay condo fees on the units that aren’t sold will certainly benefit all owners as they will be contributing to the bottom line and the reserve funds will grow nicely.
The developers and builders will most likely not like this, as it will cost them money. Overall, the current and future owners benefit, which they should. I would assume the developers and builders will increase their prices to cover these extra costs, and pass along these extra expenses to the buyers.
Nothing is for free when it comes to real estate, nothing.
Ryan MacDonald, B.Sc. Real Estate Professional
Million Dollar Club Member
Top 1% Real Estate Professional in Calgary
O: 403.278.2900; F: 403.592.8008