Strata Consumers Benefit

2007/10/03 Originally published in the Vernon Morning Star.

Remember the "Leaky Condo" saga that affected so many buildings on the Lower Mainland a few years ago? Many of the court cases are still in progress.

The BC Home Warrantee Program had bankrupted over huge payouts they had to make for repairs on so many buildings. I shouldn't say this was only on condo projects on the Lower Mainland because there were other claims in the BC Interior, including in the Okanagan Valley.

The "Leaky Condo" scandal got its' name over the building envelopes not being weather tight. With the excessive rainfall the Lower Mainland receives, buildings built with improper designs or less than perfect workmanship soon showed signs of water damage. Some buildings showed it to the extreme.

With the BC Home Warranty Program defunct, the homeowners in these developments had to sue the concerned builders or developers or put the money in themselves. Some of the cases were so bad it took $10's even $100's of thousands of dollars to remedy the situations. Court cases are lengthy processes. Some of the builders and developers were forced to bankruptcy. The situation was so bad back then that the Provincial Government ordered an inquiry. That inquiry became known as the "Barrett Commission."

The investigation was a lengthy one. Their recommendations have resulted in a very important form being created for greater consumer protection. The form is called a Form B and it must be produced and signed for every strata/condo sale in our province.

The Form B states the balance of dollars in the contingency fund of the Strata Corporations. It also declares whether or not there are any legal proceedings in progress (i.e. claims against the builder or developers etc.) The form also reveals whether any monies for special levies have recently been paid out to anyone.

It's now a criminal offence for a strata corporation executive member or a strata property manager to fail to declare all these types of problems. Filling the form out untruthfully leaves that person open to being sued, fined, etc.

I understood the reality of the Leaky Condo situation was that the Strata Corporations in some cases did not "Tell all" and the subsequent buyers fell into financial hardship they could not have anticipated.

The Form B is a huge improvement and a real bonus to consumerism. So rest assured when you buy strata property in BC today, you have this considerable added protection. There are various New Home Warrantee Programs available. It is a provincial requirement that buyers be provided with such insurance.

Jane Field works with RE/MAX Vernon. Jane has over 30 years experience in the Real Estate business. To suggest topics for future articles or to ask Jane questions, email her or call 503-3755.

RE/MAX Vernon | 250.503.3755 | Toll free 1.888.503.3755 | 5603 - 27 ST | Vernon | BC | V1T 8Z5 | Canada

Condos, Townhomes and Strata Properties

Strata Consumers Benefit