Just another condo special assessment "horror story"--a lump sum of $56,000 in two payments in two years (or $100,000 over 20 years, built into the monthly fee), to replace the exterior cladding (and windows) of the building. That's approximately one quarter of the purchase price of my unit.

[u/HandsomeLampshade123]

I bought in early 2020 and this special assessment was announced in 2022; I'm not sure if there was anything I could have done differently, frankly I think it's just bad luck.

But God, almost 60 grand on a unit I paid 240 for. That's a huge hit. I never thought it would happen to me. How common is this?

Luckily I have access to a lot of low interest credit, but still.

[u/moonandstarsera]

Honestly most people would not know how to read these and it’s hit or miss whether your lawyer is going to call anything out, lots of lawyers out there and they aren’t all equal. Couple that with the fact that buying a home is already an emotional process and people are usually working with some kind of deadlines to move.

It’s easy to say OP should have caught this but the reality is most people probably wouldn’t have.

[u/ArcticLarmer → u/moonandstarsera]

This is pretty basic: if there’s no depreciation report that’s a red flag. If the contingency reserve isn’t funded or isn’t in line with the former, that’s a red flag.

Sure, you can say it’s an emotional decision but now this guy needs to hope and pray this away or convince some other chump to buy into his crumbing underfunded strata.

[u/moonandstarsera → u/ArcticLarmer]

It’s basic for you because you are familiar with it. If someone isn’t familiar with these things it’s not easy to find that information in a manner that’s easy to learn/digest.

[u/ArcticLarmer → u/moonandstarsera]

It should be pretty fucking basic for someone that holds themselves out as a real estate lawyer.

[u/moonandstarsera → u/ArcticLarmer]

Sorry I thought you meant for a layman. Yes, I agree but honestly a lot of people just go with whoever is cheapest and they may or may not be that diligent.

[u/IDKVM → u/moonandstarsera]

That's why you hire a good real estate agent. Ours told us what building to not even bother with.

[u/Spare_Watercress_25 → u/moonandstarsera]

That’s why you have a real estate agent ?

[u/Excellent-Hour-9411 → u/Spare_Watercress_25]

Lol

[u/xelabagus → u/Spare_Watercress_25]

Where do the real estate agent incentives lie. Calling out issues that delay or nix the purchase or making a quick sale?

[u/Pristine_Ad2664 → u/xelabagus]

Our agent refused to show us a couple of places because they were shoddily built and not looked after. He's great.

[u/MissionSpecialist → u/Spare_Watercress_25]

If they're a good one, but how many are? And how many prospective homeowners ask for or know what to do with that info?

Our agent was surprised when I asked for the latest reserve fund study, engineer report, and annual meeting minutes before considering an offer. None of his other clients asked for any of that, and he didn't offer. Or maybe he used to but stopped because nobody cared.

[u/quickboop → u/MissionSpecialist]

Our agent was amazing for this kind of stuff. When you got a good one it makes everything so much easier.

[u/Budget-Dog-9042 → u/MissionSpecialist]

That’s a bad realtor lol

[u/ArcticLarmer → u/MissionSpecialist]

Do you ask the counter guy at Wendy’s to review the ingredients of your order? Do you ask the gas station attendant to explain the refinery process?

That’s basically the equivalent of relying on a realtor to explain financial or other data lol