By Jayson Schwarz LLM
When you buy a resale freehold home there are things you need to look at to go in the agreement of purchase and sale or offer:
- Dimensions: The offer lists frontage and depth, walk the boundaries and see where they are. Get a survey and measure. Make sure you are getting what you are supposed to be getting, especially in the city, in the older areas.
- Price, deposit and then any special conditions: Some agents use a schedule for this and frankly it’s not a bad idea as it keeps the offer neat.
- Chattels and Fixtures: A fixture is something attached to the house that ordinarily cannot be moved without doing damage. Things like the air-conditioner, furnace, pot lights and the like. Generally you get everything except what is specifically excluded. Chattels are things like the drapes, fridge, stove, washer, dryer and chandeliers. Normally you need to list all of the things you are getting. Not listed, not yours!
- Time to search title: It does not hurt anyone to give your lawyer up to five days before closing to send in requisitions. For some reason real estate agents don’t get this.
- Extra clauses: a) make sure you have a current survey (last five years) showing all structures, including pools and decks on the property; b) if you do not have your financing finalised then make the offer conditional on financing ; c) make sure it is conditional on building inspection meeting your discretionary approval; d) ensure that the vendor is responsible for compliance with all city requirements at his or her cost prior to closing; e) make the transaction conditional for a given period of time on your lawyers review and approval. This gives you an opportunity to see your lawyer, get suggestions, changes, and explanations and then return and negotiate.
If you are purchasing a re-sale condominium there are a few extra things to consider:
- Status Certificate: Make the offer conditional on the vendor supplying you with a new status certificate and provide three banking days minimum after receipt to review and approve same in your absolute discretion;
- Reserve Fund Study: Ask for this in the offer because if there is one, it may reflect an increase in your common expenses and reserve fund contributions;
- Parking and Storage: Make sure that you know ahead of time and it is in the agreement as to whether you are purchasing ownership of the parking and/or the bicycle storage unit.