Buying property is often one of our biggest investments in years. It is, therefore, worth the time and effort to conduct proper research to examine various aspects related to bylaws, growth patterns, criminality trends, title security, and numerous others. It is better to spend some money and time making an informed decision than to regret it later.
As it is said, if you calculate all the eventualities, you will never be unpleasantly surprised.
Hence, to assist you, we have compiled a list of important considerations before buying property in Canada. So, read on.
Know Why the Property is for Sale
It will help you to make a better decision if you know why the vendor is selling the property. There can be many underlying realities that you don’t know about. So, anything is possible: the property may have been involved in a crime, or there may have been some unique problem in the locality.
Moreover, your lawyer will also review the locality’s bylaws to see if any rule can adversely affect you.
Check for any Restrictions on Use
Ask your lawyer to see any encumbrances to the property title.
For instance, after buying the property, you may find out that you cannot rent it out for shorter periods. So, it is expedient to look at the issues mentioned.
Get it surveyed
A land survey is a map of the legal boundaries of property. It would help to have a survey done before buying a property. The seller would provide an up-to-date, perfectly legal survey in an ideal scenario.
What constitutes a legal survey
- One that is copyrighted
- Sealed
- Stamped
If the survey document the seller provides is old, tattered, or suspicious, you should take it with a pinch of salt. When a professional does a survey, they clarify the following issues:
It gives you a certified accurate measurement of the property and its location. It also provides the exact location of the garden, garage and other buildings.
He will examine the environmental aspects and contamination problems at the site. He will also discuss issues like any problems with the soil, for instance, whether the area contains a high concentration of lead.
It also states who can review the survey because the land survey is not a public document.
Similarly, it would help if you mentioned in the offer document that your offer is subject to survey.
It will also give you enough time to conduct the survey.
Pre-Completion Inspection
If you buy a newly built home, you should get an inspection before accepting the home. It would be beneficial if you made it a condition for the completion of the sale that you inspect the property beforehand.
Deficiency Inspection
You can add a clause called the deficiency inspection of the property. It would help if you wrote in the contract that a professional building Inspector will inspect the property and you will accompany him to this inspection. You should talk to your lawyer and be sure you are entitled to that.
You should check whether the material and other installations are the same as expected or agreed upon. Your inspection should be comprehensive, ensuring that all important things, including the washrooms, are properly functioning.
Get the Paperwork Right
There is always more paperwork than you think. Moreover, you must consider the conditions you have added to your purchase offer. Those conditions can be some ”subject to” classes, including:
- Subject to financing
- Subject to Lawyer's approval
- Or, something like, subject to roof repair
Be sure that the seller has met all the conditions for which they are responsible and that they fulfill them by the stipulated date.
In specific scenarios, you may sign a a waiver document for the sale to become binding without fulfilling conditions.
Some Checks You Should Perform
Certain essential checks should be performed to ensure you do not encounter any legal complications during or after your purchase.
- Check with the Police Department about the nature and frequency of Crimes
The local police department may be able to provide a breakdown of high-crime neighbourhoods and describe the types of crimes prevalent there.
Such information may help you decide whether to invest in this locality. Moreover, it will inform you about what measures you should take to ensure your safety and well-being so that you can make preparations before you face any loss. You may have to install video surveillance at the front door or have better lighting outside. Similarly, if there is a high rate of break-and-enter crimes, you may have to put bars on the ground-level Windows. So, in any case, you must make this necessary check to reach an informed decision.
- Check with the fire department the frequency of fires in the neighbourhood
The local fire department may provide you with information about the frequency of fires so that you can decide about your investment prospects. There may not be a high frequency of fires, but reports of garage fires often suggest arson problems or other social issues that may put your property at risk.
- Investigate growth Trends from the Home Builder Association.
The local Home Builders Association may provide information about the growth trends in that area and highlight which areas of the community are experiencing high growth and which areas require substantial renovation in the future.
Similarly, there may be areas with a high oversupply of houses or places desperate for new investments. All this information will add to your knowledge about your dealings and enable you to make a better decision.
- Understand the taxation basis by Consulting the Municipal Tax Department.
You should visit the municipal tax department and ascertain on what basis property taxes are calculated. That area may have high commercial tax, leading to a low residential tax and making residential property more viable. Similarly, there may be many children in the area, and the municipality may need new revenues to build schools and hire teachers. If you are someone investing for retirement purposes, you might want to avoid paying for something you are not going to avail. Hence, there are multiple factors that can and should impact your decision.
Bottomline
Buying a property can appear as simple as you like it to be and as complex as you dig deeper. Given the amounts usually involved in buying and selling, since purchasing property is typically a person’s most enormous spending, it is advisable to go about it with a firm footing.
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