by: Linda Pinizzotto, DStG – Dame Order of St George – Founder CEO COA – Condo Owners Association
The Condo Owners Association (COA) is recognizing “Deep Concerns” in the Condo Market. It is not just about new construction or reports from Analysts, CMHC, Ontario Builders Associations etc. We have a continual ongoing problem of non disclosure of representation from Builders. There are so many Buyers who do not realize they have an occupancy period; they are forced to close occupancy without a completed unit; the Agreements are one sided to the Builders advantages; delays and undervalued price per square foot on maintenance fees at the time of sale vs the time of close create a financial issue for buyers; many buildings have deficits in the first year and although the builder clears the deficit; the owners are hit with 20% 25% increases after the first year.
…… and why on earth does Tarion only cover 1 & 2 years Warranty for an $80 Million dollar building when most of the standard (not structural) issues surface in the 4-5th year. The Condo market is slowing because the builders increased prices per square foot on new construction way beyond the price per square foot on the resale condo market. They wanted tomorrows profits for themselves and unfortunately buyers get caught up with the glamour of the building and the glass windows (which are another issue) that they purchase and hope…lets cross our fingers….that they made the right decision.