What is the process of sale for price restricted properties through the Registered Resale List?
If an existing owner of a price-restricted property wishes to sell their property through the BHC’s RRL process the following applies:
• The homeowner will contact the BHC and inquire as to what the process of sale through the Registered Resale List (RRL) entails;
• The BHC will discuss the process verbally with the homeowner and then forward to the homeowner a letter which must be returned along with a non-refundable $525 deposit ($500+GST) before the process of resale through the RRL will begin. The fee for selling a price-restricted property through the RRL is currently $2193+GST, the non- refundable $525 amount will be deducted from the fee due (paid for by the vendor);
• The homeowner is not required to procure an appraisal as part of the sale process through the RRL however it is recommended that they do so to help guide their asking price;
• The BHC will provide the homeowner with information specific to the maximum resale price of their property based on projected closing dates. The actual maximum resale price can only be determined once the closing date of the transaction has been set;
• Once the BHC receives the letter and non-refundable cheque for $525, the RRL is frozen. Applicants who put their name on the RRL after the RRL is frozen must wait until the frozen RRL is exhausted before any opportunity to view or discuss the acquisition of that particular property can occur, regardless of the number of points they have. (For properties that are listed for sale after the applicant putting their name on the RRL, the applicant will have their place on the list and be part of the sale process in point order);
• Once the BHC receives the letter and non-refundable cheque for $525 from the homeowner, the BHC will work with the homeowner to establish a date and time for the first house showing. The homeowner has the final say on the date and time of the showing, however showings are usually in the evening and can held any day except Friday, Saturday or holidays;
• The BHC will produce a specification sheet for the property and forward it to the homeowner for final editing and approval. This spec sheet will be provided to all those who attend the showing;
• The BHC has group showings and will usually invite anywhere from thirty to forty (30-40) applicants to a particular showing (subject to discussion with the homeowner, if they want fewer invitees at any given showing then this will be accommodated). Calls for the showings will go out at least two days before the date of showing;
• On the evening of the showing, the BHC will be present to show the property. If the homeowner chooses to show the property themselves that is fine, however a BHC representative will still be at the showing to greet and take note of the RRL applicants who attend;
• If an applicant who is invited cannot attend a showing and advises the BHC before the date of the showing, the BHC will arrange for an alternative time for the applicant to view the property;
• If an applicant who is invited to the showing does not confirm their attendance for the showing and/or does not attend the showing, the BHC deems that the applicant is not interested in the property and that they have passed on the opportunity;
• Following the showing, the BHC will work with those who attend (in point order) and afford them an exclusive opportunity to discuss the acquisition of the property with the homeowner;
• When an applicant’s opportunity to speak with the homeowner presents itself, there is a 48-hour window for an applicant to discuss the acquisition of the property with the homeowner (Note: the 48 hrs does not include weekends or holidays, however, the BHC encourages both parties to discuss the acquisition through the weekend/holiday if possible). During the 48 hrs, the BHC is simply waiting to see if the parties can agree verbally to price and conditions. If both parties agree to such (verbally), this freezes the process and the potential purchaser will then go to their lawyer to draft up an offer to purchase, which they then sign and forward to the homeowner’s lawyer for review and the homeowner’s signature. Once both parties sign off on the offer, the offer is forwarded to the BHC;
• If at the end of the 48 hrs the parties have not come to an agreement on price and conditions but they wish to keep speaking and the homeowner is agreeable to this, the conversations will continue until such time that the homeowner advises the BHC that they have come to an agreement or that they cannot come to an agreement and the BHC should move forward to the next applicant. The 48 hr window of time exists only to keep the process moving forward, if a homeowner wishes to have more than 48 hrs to discuss the acquisition of their property with any RRL applicant it is to the discretion of the homeowner to do so;
• If an applicant who attends a showing passes on their opportunity to speak with the homeowner or cannot come to an agreement with the homeowner on price and conditions within their window of time (48 hrs) or any such time that the homeowner has allowed, the BHC will continue on through the list of attendees of the showing (in point order) in the same manner as identified above until such time that an agreement has been reached or that we have exhausted the list of those who have attended;
• If the BHC exhausts the list of those who have attended a particular showing with no offers being accepted by the homeowner, the BHC will then arrange with the homeowner a subsequent showing where the next group of applicants will be invited;
• This process will continue until either the homeowner accepts an offer or the BHC exhausts the existing RRL and any new applicants who have come on the RRL since the property first began showing;
• If at any time in the process an applicant makes an offer on a property and the homeowner is unable to accept the applicant’s best offer and requests that the BHC proceed with the process, the BHC will ask the applicant what their offer price was. If as the process moves forward the homeowner accepts an amount at or below any previous offer price, the BHC will return to the applicant who had made an offer at or above the existing offer price and inquire as to whether they continue to want the property at their previous offer price. If the answer is yes the BHC has the right to exercise its Right of First Refusal (ROFR) and re-acquire the property at the current offer price and then sell it (at a different amount) to the applicant whose offer had previously been declined.
• If the BHC both exhausts the existing RRL and all new applicants to the RRL from the time the property first went for sale without the homeowner accepting an offer for their property, the BHC will go through the list of RRL applicants a second time, after which time the non-refundable fee ($500+GST) is forfeited and the homeowner must provide a new letter indicating they wish to sell the property and provide a new $500+GST non-refundable deposit as part of a new $2150+GST fee.
• If the property is to be shown through the RRL a second time the homeowner will adjust their initial asking price
• If a homeowner of an price-restricted unit presents an offer to purchase for their unit that has come through the RRL process, per their sublease agreement, once the BHC receives a signed copy of said offer the BHC will have fifteen (15) days to review the offer and make the two key decisions described above.

Show All Answers

1. What is the Banff Housing Corporation (BHC)?
2. Who oversees the BHC?
3. What is the BHC’s focus?
4. Does the BHC have rental units?
5. How the BHC ownership properties are kept “value-priced”?
6. What is the equity share model?
7. What is the price restricted model?
8. How many units has the BHC developed?
9. Can anyone buy a BHC property?
10. What is the head lease?
11. What is the BHC’s sublease agreement?
12. What is the annual administration fee?
13. What is meant by “owner-occupied”?
14. Who’s responsible for taxes, utilities and insurance?
15. What key decisions does the BHC make when a property is sold?
16. What is Right of First Refusal (ROFR)?
17. How can I see the sublease agreement?
18. How do BHC properties sell?
19. How do I get my name on the Registered Resale List (RRL)?
20. Is the RRL a first-come first-served arrangement or is it a prioritized list?
21. What are these criteria and how are points allocated to RRL applicants?
22. What is the process of sale for equity share properties through the Registered Resale List?
23. What is the process of sale for price restricted properties through the Registered Resale List?
24. What criteria does the BHC look at when deciding whether or not to defer payment of the BHC’s equity share when an offer to purchase is presented to the Board for consideration?
25. What happens if I’m on the RRL and invited to a BHC showing, but I’m not interested in attending?
26. What happens if I attend a showing through the RRL for a BHC property but I’m not interested in making an offer?
27. If I want to buy a BHC property, can I own other property at the same time?
28. If I buy a BHC home can I stay on the RRL?
29. If I were to acquire a BHC property, can I rent the BHC property if I choose to be away from Banff for any period of time?
30. So what if I retire while I own the BHC property and want to travel or spend a period of time outside of Banff?
31. If I want to purchase a BHC property, how much do I have to have as a down payment?
32. What is a mortgage stress test, and how is it calculated?
33. If my down payment is less than 20% of the sale price of the property, don’t I have to pay mortgage insurance?