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A hidden wrinkle that will make the group decision to sell your condo building even harder

July 19th, 2017 · 3 Comments

There are about 70 groups of residents in the Lower Mainland at present thinking about selling their buildings to developers. That process is already stressful enough. I’m told that, no matter what price sellers get, they are always convinced the developer is somehow ripping them off and making a huge profit.

Then there are the concerns that people in their buildings, or on their strata councils, might be making side deals with developers.

Now, to top that off, it turns out that the share that each person gets is likely going to be based on some strange formula that no one paid any attention to until now. Proceeds don’t get divided up according to assessed value, which most people expect.

Here’s my complicated story on this from the Globe.

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  • sthrendyle

    Hmm, I wonder how many real estate agents will be telling prospective buyers about these sorts of ‘wrinkles’ when they’re accepting offers on new units from financially desperate couples wanting to enter the market.

  • LeAnn Howe

    Thanks for this article Frances. I am now curious to know how the owners of Twelve Oaks came to a consensus on proceed distribution based on assessed value. Surely some of the owners could have received more by insisting on using the entitlement formula.

  • francesbula

    I am told that there were individual negotiations between the developer and the owners, so there was never a vote on changing the distribution method. That’s secondhand but from a fairly reliable source.