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When do you need a building permit? Part Two

~ When do you need a building permit? ~ Part Two


Last week I started to talk about building permits, and in Part 1 we talked about when a building permit is required.
Today we will talk about what the penalties and liabilities are. In case you have not read last week's article you can read it here.

So, what are the consequences of building/renovating without a permit? Here is the official version...

*Every person who commits an offence contrary to the provisions of this Bylaw is liable on summary conviction to a penalty of not more than $10,000.00 in addition to the costs of the prosecution.

Other possible consequences:
1. There are serious liability consequences if someone gets hurt. If you are building a deck and it collapses and people get hurt. Big trouble.
2. If there is a fire or something that results from it, your homeowners insurance can refuse the claim.
3. You may have to tear down the structure.
4. It may make it extremely difficult to sell your house and to have it inspected in order to do so.

Who is liable ?
*An owner is deemed to have knowledge of and be liable under this Bylaw in respect of any construction on the parcel the owner owns and any change in the use, occupancy or both of a building or structure or part of a building or structure on that parcel.
*If you buy a house that had work done without the permit by previous owner without your knowledge you are not liable.

It is important to note that in some cases you can get the building/renovation permitted after the work is done. But
remember that every municipality is different and while some of them may do it for you for a small fee, the others will make you take it down, apply and rebuild.

It is much easier to just get the permits.


Kind Regards,

Tibor Bogdan



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What is a pre-sale?

Example scenario: When the developer intends to build an apartment building and applies for financing, the bank will grant financing under certain conditions. One of them will likely be a certain percentage of pre-sales the developer will need to secure before receiving the funds.
It is common practice for a developer to approach several real estate investors and offer them an opportunity to purchase units of the non-existent building at a discounted price, and on good terms.

Once the number of pre-sales is accomplished, the developer goes ahead with the construction, which will likely take two years or longer to complete. During construction, their marketing team offers the remainder of the units for sale at market value to the public.

If you are a RE investor, you know that it is preferable to be buying at the pre-sale prices, not market value prices.

The question is, how do you get the invitation to buy a pre-sale?
In the past many years, investors have made substantial income by buying at wholesale prices and selling at retail prices even before they needed to complete their purchase. I saw many of them lining up and sometimes even camping overnight in front of the sales center to get a chance to buy at lower prices, but not everyone was lucky enough. You needed to be well-connected to get an opportunity, and you had to act fast.

Today is a bit of a different story. Several projects in the Lower Mainland and Fraser Valley offer really good prices and incentives to secure a unit now and complete the purchase two or three years later. The list of incentives varies from one project to the next. Besides attractive prices, you can get low deposit amounts (5-15%), low or no assignment fees, free updates, a mortgage rate buy-down program, extra parking and more.

A month ago, I helped a few of my clients purchase a presale in Surrey that sold out in 2 days, and I know of another good developer that will be offering a few units for sale as well.

If you would like to know more about these opportunities, I would encourage you to call or email me, and I’ll be happy to send you details on those projects.
Kind regards,
Tibor Bogdan
Century 21 Creekside Realty Ltd.
45428 Luckakuck Way #190, Chilliwack, BC V2R 3S9
cell: 604-855-2521
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