Important Information for Condo Investors
Measurements are very important when investing in a Vancouver condo. Investing in a Vancouver condominium today means jumping into a market that is moving at an unprecedented pace. A new listing will hit the market on a Wednesday, followed by a weekend Open House with offers presented on that Monday, usually resulting in a firm sold deal by 11:00 pm that same evening.
One of many important factors for determining true market value of a condominium is its gross square footage. The square footage of a resale condominium is determined by a registered legal document filed at the Land Title Office called a Strata Plan. Every condominium in a building will have its own uniquely numbered strata lot number stating the legal gross square footage. This number is used for determining taxes, maintenance fees and if by chance there is a special assessment, this document is used to determine the amount owed by each condominium owner.
Many listing agents today hire professional measurers to create a floorplan that shows the layout, room dimensions and gross square footage. In my experience, the floorplan created by a professional measurers, generally shows a gross square footage larger than the registered legal strata plan filed at the Land Title Office. I have seen a professionally measured floor plan measure 50 to 200 square feet larger than the legal strata plan. While these measures seek to eek out every portion of usable space, the results can at no time be used to determine the dollar per square foot market value. Given the implication, this fact is generally noted in a disclaimer, in a tiny font, at the bottom of every floor plan they create.
Here are a couple of actual examples:
Listing A floorplan 864 sq.ft. Strata plan 652 sq.ft.
Listing B floorplan 667 sq.ft Strata plan 569 sq.ft.
If true market value in the subject building at a said floor level is $775.00 per square foot, then the above square footage differences will have a huge impact on the investment.
A listing agent that advertises the professional measurers square footage must disclose this fact in writing and at time of showing/offering for sale. On several occasions I have had to confront the listing agent to clearly ascertain if the advertised square footage is from the strata plan or a professional measurer only to hear that is the advertised square footage in NOT from the strata plan.
Given the pace of the market and people’s limited ability to get through the details; there have been numerous lawsuits over the years directly related to this matter. When the buyer signs their legal paperwork at time of completion with their notary or lawyer, they are signing off on the legal strata plan and square footage; this is no time to have a surprise or conflict regarding the legal square footage of the investment. If you would like further information on this particular issue or details of other strata documentation, please call or email me at [email protected]