Strata Tip of the Week - Strata Leaks: What Buyers Should Watch For

Purchasing a unit in a strata corporation with a history of leaks and water-related issues can carry cartain risks. However, leaks are among the most common problem in strata developments, so it’s important to evaluate not just the number of leaks reported, but also their sources and how the strata has responded to these challenges.

1. Evaluating the Risks

• Property Damage: Persistent leaks can lead to structural issues, mould growth, and compromised building integrity. Buyers may inherit unresolved problems or face new ones.

• Financial Burden: Addressing recurring leaks can be costly. Strata corporations may require funds for repairs, investigations, and remediation, leading to higher strata fees or special assessments.

• Decreased Property Value: A history of leaks can lower demand and resale value, as buyers may be hesitant to invest in a building with ongoing water issues.

• Inconvenience and Disruption: Frequent leaks require repairs and renovations, which can disrupt daily life. Extensive remediation may even necessitate temporary relocation, leading to extra costs for residents.

• Insurance Challenges: Buildings with a history of leaks may face higher insurance premiums, increased deductibles, or difficulty securing coverage. Owners may also see rising costs for personal insurance.

2. Assessing the Strata’s Response:

When reviewing a strata’s history with leaks, consider the following:

• How quickly are leaks addressed? Does the strata bring in professionals for repairs and remediation, or are issues left unresolved?

• Does the strata invest in preventative maintenance? Regular plumbing inspections, drainage cleaning, and appliance checks are essential. For older stratas, plumbing assessments and building envelope inspections are also important.

• Is there a long-term plan? A well-managed strata should have a strategy for addressing aging infrastructure. Reviewing meeting minutes, depreciation reports and financial plans can provide insight into how prepared the building is for future repairs.

Making an Informed Decision

To minimize risks, buyers should investigate the sources and causes of leaks, assess the strata’s response, review maintenance records, and seek professional advice if issues appear extensive.

By conducting a thorough analysis, buyers can better understand the risks and make more informed decisions before purchasing a unit in a building with a history of extensive leaks and water-related issues.

That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know at info@condoclear.ca.

Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice.