This article will touch on physical aspects of a property that must be investigated. This is more than a leaky faucet that will need to be fixed. The major items you will want to look at are the following: roof, windows, heating system, electrical, and drainage. If there are serious issues with any of these things, you could be in for a big surprise financially.
A good real estate agent and an experienced building inspector are a must. Here, however, we will talk about how your real estate lawyer can help. The first step is to ensure that you have retained a real estate lawyer who has experience dealing with investment properties and knows what red flags to look for in the Agreement of Purchase and Sale. Your real estate lawyer can explain to you that there are certain warranties and representations that you can ask a seller to include in the Agreement of Purchase of Sale. For example, you could ask the seller to warrant that to the best of his or her knowledge, the drainage system, heating system and electrical system are in good working order. These can be expensive items to fix and having a seller’s warranty in addition to an experienced building inspector will go a long way toward ensuring that you don’t get stuck with unexpected bills after closing.
In addition, your real estate lawyer can advise you to ensure that you include a clause in your Agreement of Purchase and Sale, whereby the seller must provide you with a letter from the local fire department prior to closing, stating that the building meets the local fire code. In cities like Toronto and Markham, obtaining these letters can sometimes take longer than expected, so it is important that the seller is aware of this obligation from the beginning of the process.
These are just a few of the many things that your real estate lawyer can help you with when purchasing an investment property. What is important to remember is that not every real estate lawyer in Ontario is equipped to handle your investment property transaction. To ensure a worry free purchase or sale, choose a real estate lawyer who has experience in this area.