by Paul Cowhig, Advisor, Professional Standards
At the end of last year we published the article: Balconies, Patios and the measurement of Strata Lots.
That article was in response to a trend by some members to include balconies and patios in the floor area of the square footage field of their listings.
In a slightly fresh twist on the same topic, there are some new developments that are being built with some balconies being finished by the developer as “solariums”. These balconies are completely glassed in, heated and considered suitable for year round use. But, as nice as they are, they’re still balconies. They are not part of the square footage of the unit; they are limited common property. These areas must not be included in the square footage as finished or unfinished area.
The appropriate way to highlight a closed in balcony like this is to note it in the REALTOR® Remarks, public comments and pictures; not include in the square footage totals.
Developers and builders often include areas such as patios, balconies and even carports and storage spaces in the total square footage, in order to make the property sound as attractive as possible to potential buyers. However, they are then required to explain and declare this in the Disclosure Statement.
Council specifically says that this should be a red flag for licensees to exclude these areas from floor area in Realtors advertising so that buyers are given an accurate total of the living accommodation space they are purchasing.
It is critical that the ways in which we represent the properties we sell are accurate in every detail.
That said, the Board is open to suggestions for ways we can facilitate new and different alternatives in the data input forms, in order to provide the most accurate descriptions of the relevant features of the properties represented on MLS®.
Buyers and sellers alike depend on us for reliable information and there can be significant problems with lenders, insurers and others when those details are found to be misrepresented in any way.