Some Highlights:
The BC government is taking its first steps to mitigate soaring strata insurance costs by introducing a bill to amend the Strata Property Act and Financial Institutions Act.
The government wants to make the strata insurance industry more transparent, close depreciation report loopholes, and end referral fees paid to property managers, while giving strata councils more tools to deal with insurance.
If passed, the changes will:
end the practice of referral fees between insurers or insurance brokers and property managers or other third parties;
set out clear guidelines for what strata corporations are required to insure to help strata councils make informed decisions on their insurance policies;
require strata corporations to inform owners about insurance coverage, provide notice of any policy changes, including increasing deductibles, and allow stratas to use their contingency reserve funds when necessary to pay for unexpected premium increases – this was recommended by the Real Estate Board of Greater Vancouver (REBGV) and the BC Real Estate Association (BCREA); and
protect strata unit owners against large lawsuits from strata corporations if the owner was legally responsible for a loss or damage, but through no fault of their own.
The new legislation will also give the government the ability to:
identify when stratas are not required to get full insurance coverage;
strengthen depreciation reporting requirements, including limiting the ability to use existing loopholes in the legislation to avoid completing depreciation reports;
change the minimum required contributions made by strata unit owners and developers to a strata corporation’s contingency reserve fund;
require brokers to disclose the amount of their commission, which has been reported to be at times in excess of 20%;
strengthen notification requirements to strata corporations of changes to insurance coverage and costs, or an intent not to renew – this was recommended by REBGV and BCREA; and
amend the Form B Information Certificate – this was recommended by REBGV and BCREA.
The government specifically named BCREA, which represents Realtors across the province, as a key stakeholder in the creation of the new legislation.
Since February, Realtors have made recommendations to the provincial government to help deal with rising insurance costs.
The BC Financial Services Authority (BCFSA) found strata insurance premiums rose by approximately 40 per cent, with deductibles seeing triple digit increases over last year across the province according to their interim report released on June 16.
These increases are having a widespread impact on BC – nearly one in three British Columbians live in a strata property.
We’ll provide more information on this report in the coming weeks.
An addition to the Strata Property Regulation (BC Reg. 43/2000), made through an Order in Council on May 29, 2020, may make life easier for strata corporations grappling with sky-high insurance premiums.
Strata corporations can now fund insurance premiums from their contingency reserve funds without a three-quarters approval vote.
Vancouver's Real Estate Board worked with the BC Real Estate Association, and the other 10 boards in the province, to develop recommendations for the BC government that, if implemented, would help deal with the issue:
Amend the Form B Information Certificate to require proof of insurance, including premiums, deductibles, coverage and expiry date.
Work with the insurance sector to put measures into place that assure all strata corporations are able to obtain insurance coverage, for as long as the difficult market conditions last.
Engage with insurers so they continue to provide coverage to strata corporations.
Amend the Strata Property Act to require a strata corporation to inform owners and tenants of any material change in insurance coverage, including an increase in any deductible, as soon as feasible.
Require insurers to provide strata corporations with notices 60 days before their policies expire or will be cancelled.
Encourage the provincial insurance regulator, the BCFSA, to make public the data and information it is gathering from insurance companies to better understand the current climate of expensive strata insurance.
Encourage the BCFSA to foster a robust, economically viable market that attracts insurance providers.
Develop mandatory education for strata council members.
Either create a new organization – modeled on the Condominium Authority of Ontario – to enforce the Strata Property Act, including providing mandatory training and creating best practices for strata councils, or assign this role to the Ministry of Municipal Affairs and Housing.
Strata building insurance premiums are increasing for a variety of reasons, according to the insurance industry. These include an increase in the number of claims, in the cost of repairs and rebuilding, and in the growing number of strata developments. Many strata buildings date back to the 1970s and ’80s and strata owners may be reluctant to undertake major system upgrades until problems occur.
The most affordable homes in Metro Vancouver are strata units. Drastically increasing insurance rates negatively affects housing affordability. As well, some strata corporations are struggling to find insurers willing to cover their building, making them non-compliant with the Strata Property Act. This means these units can no longer be bought or sold. This is adding uncertainty and risk into the market and the economy at large.
Summer is the New Spring!
Well, hello and welcome to June. Looking back to last week on the North Shore, we see the highest Sales to Listings Ratio since early March of this year. Impressive numbers ! 46% sales to listings in North Vancouver, and 61% in West Vancouver. The phone is ringing. The stress test has loosened. People feeling a little more comfortable in their day to day lives, and venturing our & about a little more. Plus, add some sunshine to the demand for North Shore homes ( people want to live here!), and you have a winning combination.
BUYERS: There's a little more choice for you now, in all categories.
SELLERS: This is the PERFECT TIME to book a Strategy Session with us so that we can help you get your home looking beautiful, and on the market before everyone else lists and your competition gets going!
In a normal housing market, whether you’re buying or selling a home, you need an experienced guide to help you navigate through the process. You need someone you can turn to who will tell you how to price your home correctly right from the start. You need someone who can help you determine what to offer on your dream home without paying too much or offending the seller with a low-ball offer.
We are, however, in anything but a normal market right now. We are amid one of the greatest health crises our nation has ever seen. The pandemic has had a dramatic impact on the journey consumers take to purchase or sell a home. To successfully navigate the landscape today, you need more than an experienced guide. You need a ‘Real Estate Sherpa.’
According to Lexico, a Sherpa is a “member of a Himalayan people living on the borders of Nepal and Tibet, renowned for their skill in mountaineering.” Sherpas are skilled in leading their parties through the extreme altitudes of the peaks and passes in the region – some of the most treacherous trails in the world. They take pride in their hardiness, expertise, and experience at very high altitudes.
They are much more than just guides.
This is much more than a normal real estate market.
Today, the average guide just won’t do. You need a Sherpa. You need an expert who understands how COVID-19 is impacting the thoughts and actions of the consumer (ex: virtual showings, proper safety protocols, e-signing documents). You need someone who can simply and effectively explain the changes in today’s process to you and your family. You need an expert who will guarantee you make the right decision, especially in these challenging times.
Hiring an agent who understands how the pandemic is reshaping the real estate processes is crucial right now. Find that ‘Real Estate Sherpa’ to guarantee your journey is a safe and successful one.
The benefits of Home Ownership are many - and with interest rates at amazingly low levels today - the joys of Home Ownership may be closer than you think!
Our current world reality has closed cinemas and handcuffed the service industry - not to mention run up one major government deficit.
Several recent forecasts have predicted everything from near-collapse to rapid house price growth once the outbreak passes.
While I am feeling more positive than negative, about our housing market I am not going to make predictions.
Here’s what we know for sure:
We anticipated April's numbers would be less favorable than those of March. Still, on the ground we see Sellers & Buyers finding ways to transact successfully, despite uncertainty. The good news is this situation is not systemic to the real estate or mortgage industry. If we’re not in a recession yet, we’re about to be in one. This time, however, most experts feel that housing will be the sector that leads the economic recovery.
BEWARE the articles in the MEDIA like the one we saw today whose headline reads, "BC Home Sales to plummet by up to 40% this month". What's the number you're going to remember here ? 40%, right ? But it's not until you read further in that it says, "compared to the same month last year". Spring is typically our busiest time for sales, and it is no surprise that this year is going to be different than last year! If you want to know what's going on in your neighborhood, talk to a Realtor who is working through this market and find out the true numbers in your area of preference. And you could also CLICK HERE
#realestate #northshore #realestatemarket #realestateagent #homeownershipmatters
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The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.
