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Follow @bokauffmannCondo By-Laws: Balance between reasonable restrictions and negative resale value
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This blog-post is actually addressed to anyone serving on a condo-board, or in a position to influence by-laws and rules of their condo, but condo buyers and sellers might find this interesting as well. I would like to talk about the by-laws, and the importance of striking a ‘balance’ between functionality and adversely affecting resale value.
One of the truisms in selling ANY product is this :“Make it EASY for the buyer to buy”…. in other words, “Don’t throw up a bunch of road-blocks”. This is very true for condo-by-laws. The more restrictive they are, the smaller the pool of interested buyers, and the tougher it can be to sell the condo (ie: the lower the selling price).
Let’s take a look at an example of “Age Restriction”. Condos that are for 55+ residents might be very desirable to the buyers in that age group, but since it leaves out anyone under 55 yrs of age, over half of the potential buyers will not be able to buy it. Smaller pool of buyers, means smaller selling price to the condo-owner.
By-Laws Can Hurt Resale Value
More extreme examples include “Pet Restrictions”. Having a by-law which states “Absolutely No Pets” turns off a large part of potential buyers. For example, many older residents, especially widows or widowers, enjoy the company of a pet. An alternative might be to restrict the number and size of pets. Some boards have written a by-law which states :”If an owner takes their pet onto common elements (such as the hallway for example), the pet must be carried by the owner”. This naturally precludes someone from housing their malamute or newfoundlander in their high-rise condo.
Another example of a restrictive by-law, which initially might seem appealing, is the bylaw that states :” No For Sale Signs to be posted on condo property”. Owners might initially think that this is a good thing, but in the end, it will negatively affect nearly EVERY owner at some point….when they’re trying to sell their condo.
Another condo in the south end of the city is so restrictive as to not allow owners to showcase individual flower pots outside of their units.
As someone who has written by-laws for condo corporations, I may suggest this: Striking a balance between functionality and adverse effect on resale value is in everyone’s interest.
If you’re looking to buy or sell a condo, or simply have questions about condo by-laws and rules, please feel free to contact me anytime
Bo 333-2202
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Hello. and thank you…. my main blog has been transferred over to http://blog.winnipeghomefinder.com and the feed for that is http://blog.winnipeghomefinder.com/feed …. you should be able to subscribe there….thanks for your comments
Oh my goodness! Awesome article dude! Thanks, However I am having issues with your
RSS. I don’t understand why I am unable to join it. Is there anybody else getting the same RSS issues? Anybody who knows the answer will you kindly respond? Thanx!!
Hi Jessica: Thank you for your questions. While Condo laws in Alberta may be a little different than here in Manitoba (Condo regulations are Provincial, so can be different between provinces), here is the answer as it would pertain to Manitoba:
Condo by-laws are passed with 75% approval of the owners. So if you wanted to write a new law, you would first have to write the proposed by-law, then submit it to all condo owners and give them at least 30 days to consider the changes. Then you have to have a vote (usually done at an Annual General Meeting) and at least 75% of the owners have to agree. Then it can become a new by-law and must be filed with the Land Titles Office.
However: your question regarding creating a law which allows owners to bring their previously owned pets into the building is a little impractical. It would prevent current owners from having a pet, but new owners could bring one in. You might be thinking of a “grandfather clause” which works this way: If you write a law which PROHIBITS pet ownership, you could allow current owners to KEEP their pets until they pass away (the pets, that is) and from that point no more pets are allowed.
My advice: Ask around with some of the owners in the building. You might find that many feel the same way, and would like to allow pets. A compromise might be to allow pets up to a certain size….. for example “Dogs no larger than 25 lbs” or something to that effect.
Good luck
Bo
Hi
I have a quick question about bylaws. How does a person go about submitting a new bylaw? I live in Fort McMurray and pretty well all affordable condos don’t allow pets. Is there a bylaw that can be created to allow pre-existing pets before purchase of a condo in to the building no matter what the condo board says? I mean up here my dog is alot cleaner and quieter then most people up here.
Thank you for your time.
Jessica
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