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Buyer Beware!
If you think you have found the right
house, but you have some concerns about
its structural soundness, now is the time
to call in an expert. Consider having the
house inspected by a building inspection
service, which will prepare a written
report. Your purchase is a big investment;
so think of the fee for this service as an
insurance premium.
What other questions should you ask?
Is a Property Condition Disclosure
Statement available?
In British Columbia, vendors may be
required to complete (or ay voluntarily
complete) a Property Condition Disclosure
Statement in a prescribed form. This
statement provides information about the
state of the property to all potential
purchasers.
What is the zoning on this property?
The local government establishes the
zoning on a property. Zoning sets the type
of buildings, which may be built on any
particular piece of property and how those
buildings may be used: single family
residential, duplexes, multi-family
residential, commercial or industrial. You
may also wish to ask about the zoning on
the surrounding properties to determine
if, for instance, a factory or a park
could suddenly appear nearby.
Are there any restrictive covenants?
A restrictive covenant places a
specific limitation on the owner’s use or
occupancy of property. Such things as a
prohibited type of exterior finish, the
minimum size of a structure, or the
maximum height of the structure are only a
few examples of the type of restrictive
covenant you may encounter. The act of
purchasing a property that has a
restrictive covenant compels you to abide
by it.
Are there any easements?
An easement is a right or privilege one
party has to use the land of another for a
special purpose. Examples are: easements
given to telephone and electric companies
to erect poles and run lines over private
property, easements given to people to
drive or walk across someone else’s land
and easements given to gas and water
companies to run pipelines to serve their
customers.
Is a copy of the state of Title
available?
A copy of the State of Title will allow
you to see who is registered as the
current owner of the property and if there
are any registered mortgages, easements,
restrictive covenants, right of way, etc.
which may affect the use or value of the
property.
How much are the property taxes?
As stated earlier, the amount of
property taxes payable will figure in the
calculation of how much money you can
borrow to finance your purchase.
Is the fireplace insert a "fixture"?
Things contained in a building or on
the land are classified as either fixtures
or chattels. The difference between a
fixture and a chattel is very important to
you because fixtures stay with the
property when it is sold, but chattels
depart with the old owner. If you see an
attractive fireplace insert, a "Murphy
bed" in the spare bedroom closet, a vacuum
canister in the utility or custom window
blinds which you think should stay, but
are not certain if the seller agrees, ASK
if it is a fixture.
What about condominiums?
If you are contemplating the purchase
of a new home that involves the
condominium or cooperative type of
ownership, there are some additional
points to consider.
| What are the charges
for the common area maintenance? What
services or utilities are included?
Does the project have a good
reputation for honesty and successful
operations? Are units, not controlled
by the developer, being successfully
resold?
Who controls the recreational
facilities? Will you be required to
pay extra fees for using any of the
facilities?
If it is a new development, is
there a certain date when your unit
will be ready for occupancy? Will the
swimming pool and recreation
facilities be completed by that date?
Who manages the property? Is it
managed professionally or is it an
owner’s responsibility?
What contingency reserve fund is
maintained for roof replacement,
decorating, repairs and maintenance?
Are owners permitted to rent their
units to tenants? How many rental
units will be allowed in the project?
Have any special assessments been
agreed upon, or have any structural
problems been noted, which may lead to
a special assessment in the future? |
Ask to see the current Bylaws,
Rules &
Regulations, and the Annual Budget. These
documents will govern the manner in which
your unit and the common areas may be
used.
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