Full funding – more than enough?
April 2014

May 2014 – Hockey is almost over for the year, with the nice weather it’s getting harder to stay indoors to watch the games. If only the FIFA World Cup wasn’t coming up so soon...

I am looking forward to attending the upcoming Appraisal Institute of Canada Conference in Halifax. It’s a great opportunity to visit the east coast, attend educational sessions and networking with colleagues from across Canada.

Welcome to this month’s newsletter. As always, we look forward to your thoughts and comments.
Regards,
Ernie Paustian
Ernie Paustian


Exclusions and Liability

We again received a call from a mortgage broker about a deal that collapsed because the reserve fund study was 7 years old. He was told that mortgage insurance will no longer be provided on properties with out-of-date reserve fund studies.
Coincidentally, we then reviewed a Reserve Fund Study completed by a provider which contained an exclusion clause indicating the report was not intended for third party use, along with a disclaimer disavowing any responsibility for damages. Because I am not a lawyer, I can only assume that in this case third parties include auditors, unit owners, potential purchasers, lawyers, lenders and mortgage insurers. Would it be possible then that mortgage insurers are insisting that a property have a reserve fund study completed, yet at the end of the day the study provider doesn’t allow them to rely on the report?

As Strata properties in British Columbia are able to opt out of having a Depreciation Report completed, I am curious if anyone in BC has experienced a mortgage insurer saying no to financing either because a depreciation report hasn’t been completed or because of any negative comments contained within the report?

It’s always a good idea to know when to quit… As the Judge indicated “In what are, thankfully, very unusual circumstances”.

Those floor-to-ceiling windows (window walls) are sure to provide an awesome view, but as always there is a price to pay…

The Alberta Government has tabled the long awaited changes to the Condominium Property Act, with the possibility of the changes becoming law as early as the fall of 2014.

Thankfully, the Government has decided not to privatize the Alberta Land Titles Registry. Although the infrastructure needs upgrading, I’m told that the Alberta system is nonetheless one of the best in Canada.

Thank you for taking the time to read our newsletter. At Delta Appraisal, we work with Property Managers and Board Members to set realistic budgets and to prioritize maintenance and repair projects. Our functional Reserve Fund Studies are unbiased. We are not competitors in property management or maintenance.

For more information about Delta Appraisal and our easy to read Reserve Fund Studies or to request a no-cost, no-obligation proposal, please contact us.

 

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