When purchasing real estate, conducting thorough due diligence is essential. The extent of this research varies by property type, but here are critical considerations to discuss with your real estate professional before making a deposit.
Detached Properties
1. Lot Size: Check the lot size on vanmap.ca to ensure it matches COV records. For accuracy, consider getting a survey.
2. Intended Use: If you're interested in a work-live space, verify zoning regulations to ensure it's permitted.
3. Title Review: Investigate the title for potential issues such as fraud, encroachments, liens, and outstanding building permits.
4. Suites: Determine if suites are legally permitted and understand the implications of unauthorized units.
5. Environmental Concerns: Be aware of environmental clauses, particularly for properties built before 1960, as regulations tightened after that period.
6. New Properties Confirm the occupancy permit, lien holdback, city building inspections, warranties, and whether GST is applicable.
7. Previous Marijuana Grow Ops: Check city records for any history of marijuana grow operations on the property.
8. Non-Resident Vendors: If buying from a non-resident, be prepared for a 25% holdback of gross sales as required by CRA.
9. Water Testing: Some areas may require a potability test for water.
10. Radon Testing: Consider radon testing, especially in areas near mountains.
11. Independent Legal Advice: Always seek legal counsel, as real estate agents may not be equipped to advise on all aspects that could impact property use.
Attached Properties (Condos, Townhomes, Duplexes)
1. **Building Bylaws**: Review the bylaws to understand community rules and regulations.
2. **Strata Plan**: Compare the square footage in the strata plan with what is declared.
3. **Parking and Storage**: Clarify parking and storage arrangements, as there are differences between common and limited property.
4. **Bylaw Changes**: Confirm if any bylaw changes are pending before completion.
5. **Form B Review**: Examine Form B to understand unit details and strata obligations.
6. **Property Disclosure Statement (PDS)**: For rental properties, review the PDS for information on renovations and what’s included in maintenance fees.
7. **GST Applicability**: Verify if GST is included in the purchase price or if it applies separately.
Taking the time to ask these questions can save you from potential pitfalls and ensure a smoother buying process. Always consult with professionals to guide you through the due diligence process!
