Vernon Real Estate – Blog & News

Subject to Sale Offers

Posted by admin on June 28, 2011 | No Comments

 When selling, have you ever wondered why you should or should not consider offers which are subject to the sale of a Buyer’s property?
 Many possible factors can influence your decision.  At the top of the list would be to find out if the Buyer will accept you adding a “time clause.” A time clause allows the seller to keep their property on the market.  If the seller receives another acceptable offer then the Seller notifies the first buyer (through their Realtor®) that they have so many hours to remove any and all conditions from their offer or step back and let the second Buyer proceed to buy the property.  The number of hours for notice is set at the time the purchase price, possession etc are negotiated.  Sellers should be aware that the higher the number of hours, the more of a deterrent it is to any other buyer.  Commonly 24 to 72 hour periods are used.
 In a time clause, buyers sometimes ask to exclude weekends, or at least Sundays and statutory holidays from the calculation of time.  Sellers need to be cautious about such exclusions. This can directly affect out of town buyers who come to the area to look on weekends.  If that buyer must make their choice, or even prefer to make their choice on the concerned weekend, they may be put off by the existence of a time clause.  The shorter the time clause, the less effect it has on the saleability of the property.
 If you are a buyer and you have made your offer subject to the sale of your current home, it is best you decide early if you would actually finance the purchase of you new home, rather than wait to sell your existing home.  Even if you only think you might wish to bridge/interim finance then go see your banker or mortgage broker as soon as you sign the purchase contract.  Don’t wait until a second buyer comes along and triggers the time clause.  You may find your banker needs more time to process your loan application than the time clause allows.  Better to be safe than sorry.
 As a seller, another question you may have is trying to assess if there would be fewer showings, if you have accepted an offer to sell that is subject to the sale of the Buyers home.  The answer is that it doesn’t change the number of showings substantially.  Realtors® accept that “subject to sale” seldom means they will not be able to bump the first offer, and they are therefore usually happy to show the property.  Of course the shorter the time clause, the less the effect it has on showings.
 Sellers, please know that your Realtor® is not required to notify the Multiple Listing Service that a subject deal is pending.  In the case of “subject to sale” it is doubtful your Realtor® would report the sale and it is your right to ask your Realtor®  not to.  Your Realtor®  will have to tell Realtors® who show your property of the existence of a time clause; however.  Once the Realtors® get the details, they usually do continue efforts to show the property.
 All in all, I think “subject to the sale” offers can be managed to not have too much negative effect on the Sellers position.

Jane Field works with RE/MAX Vernon.  To suggest topics for future articles or to ask Jane questions, email her at jane@vernonrealestate.ca or call 250.503.3755. 

Importance of Deposits

Posted by admin on April 28, 2011 | No Comments

 When making an offer to purchase, it is a good idea to show your sincerity by offering as good a deposit as possible. Sellers look most favorably at offers that give them peace of mind. 
 Every aspect of an offer effects the seller. For instance, if your offer is subject to financing the seller is aware that they cannot be sure your offer will become firm. The same thing applies if you have made your offer “subject to the sale of your present home”. Again, your offer is not a “sure thing” to the seller. All conditions have some effect on the confidence of the seller.  The more confident you can make the seller, the more favorably the seller looks at your offer. Deposits are a vital part of this picture.
  (I am not suggesting for even a minute that you should refrain from putting your necessary conditions on your offers. You absolutely need the protection these clauses provide. i.e. subject to home inspection, financing, sale of home etc.)
  If you tender a poor deposit , the seller is less assured that they can rely on you. Alternately, if you offer a generous deposit, the seller knows you mean business.
 Remember to, that most sellers will become buyers themselves, as soon as they accomplish a sale on their present home. If a sturdy deposit is part of the contract of sale on their existing home, they can go forward to buy, having the necessary faith that nothing is likely to happen to their sale.
 In our area, deposits are sometimes tendered in two parts.  A small amount of perhaps only $1000 at the time of the offer, and then significantly more, often $9000 to $20,000, when you remove your conditions and make your offer firm and binding.  This practice works quite well as it keeps the buyer from surrendering savings account interest or avoiding borrowing charges until and unless they are actually going ahead with their purchase.  Deposits are often even larger on more expensive properties.
  Your deposit is not an added expense. Rather it forms part of your purchase price and it goes towards the monies you will need to complete the transaction.
 Deposits are not paid to the seller until the property actually goes into the buyers’ name. Instead, they are typically held in trust by the buyer’s real estate company. In private sales, notaries or lawyers hold the deposit monies in trust.
 In the United States, they call deposits “Earnest Money”.  That pretty much says it all, does it not?

Jane Field works with RE/MAX Vernon.  To suggest topics for future articles or to ask Jane questions, email her at jane@vernonrealestate.ca or call 250.503.3755.  Previous articles published in the Morning Star appear on Jane’s website – www.vernonrealestate.ca

New Listing at Turtle Mountain

Posted by admin on March 18, 2011 | No Comments

#105, 3808 – 35th St. Vernon, BC

Listing Price – $ 189,900

2 bedroom – 2 bath  with quick possession possible.

Beautiful city & mountain views with a South-eastern exposure.

Showings will start on Saturday, March 26th – Be the first to view!

2287 Catt Avenue, Lumby BC.

Posted by admin on February 22, 2011 | No Comments

Don’t miss our new listing in Lumby…

Immaculate 4 bedroom + den, 3 bath home situated in a nice quiet neighbourhood!      $379,900

View details and more photos here!

Posted by admin on January 27, 2011 | No Comments

The Bare Land Strata Concept

There are several bare land strata developments in the Vernon area. Most are adult communities. Some of the earliest bare land strata adult communities were Uplands, Hillview Meadows and Sandpiper. Other examples are Quail Run and Quail Vista.

The bare land strata concept is best described as a larger piece of land that has been subdivided into several strata lots. The road within the development is known as common property. In addition to owning their lot, all the strata owners have a proportionate share of ownership in that roadway. The same proportionate share of ownership would apply to other common property such as the complex swimming pool or clubhouse.

Locally, residential bare land strata is most commonly freehold ownership and is rarely leasehold. The developer subdivides the parcel into several strata lots and submits it to Land Registry. Each strata lot gets its own lot number and the whole development will be registered under a certain Plan number. The developer has a fee simple ownership on all of the lots at the outset. The developer can then sell the lots to buyers who will subsequently be freehold owners.

Each owner pays their own individual property taxes. Their taxes are based on their individual lot and its improvements, together with their share of the common property. Each lot within the bare land development is assessed separately.

As with all strata developments when a strata plan is filed at the Land Title Office a strata corporation is established. The owners of the strata lots in their strata plan are the members of that strata corporation.

The duties of the strata corporation are to manage and maintain the common property and to keep records, such as the list of owners and their addresses. They must hold annual meetings and see that a strata council is formed each year. That strata council has to enforce the rules, regulations and bylaws. Financial records must also be kept. They must show the strata fees collected and publish how each dollar is spent or saved.

As with all strata, the owners have to vote on items such as rentals and age restrictions, etc. Other than the owners having to comply to the Strata Property Act they are free to vote on any issues that concern their complex. Minutes of all meetings are required to be kept.

In a bare land strata each owner is normally responsible to insure their individual home and also to maintain and repair the home inside and out, including roof and siding.

This is a very abbreviated summary of the bare land strata concept. This column attempts only to cover the basic idea.