APPLIANCES
Appliances may or may not be included in the market price of a home. Reviewing the “chattels” of an offer will identify what and what is not included in the selling price. Typically, Appliances come “as is”. A new home with new appliances would come with a typical appliance manufacturer warranty. The cost of an Appliance package (washer/dryer/fridge/stove/dishwasher/range hood-microwave) could range from $5000-7000 and up.
It is fair to expect that appliances will be in working order on the possession date.
“CHATTELS ARE TO BE INCLUDED IN EACH OFFER” AS INCLUDED ITEMS. There also will be EXCLUDED ITEMS which typically will include “SERVICE CONTRACTS”.
BUGS
Every house can have them. Some are harmless, others are not. If the previous owners had pets, you could see fleas. Damp wood and rotting wood can attract termites and carpenter ants. Ants are common around the perimeters of homes. Make sure nothing leans onto house providing an access point.
BUILDING INSPECTIONS
Residential real estate is sold “as is” notwithstanding that the sellers may have completed a PDS (Property Disclosure Statement). If the seller did not occupy the home for a period of time as in a rental property type situation they may choose to not complete a PDS. A professional building inspection is highly recommended. Since there is no such thing as a perfect house, at the very least this inspection will provide a checklist of things to attend to after taking over ownership. In some cases, the investment in a building inspection can make the difference in whether to buy or walk away from a property. At the very least any major issues that are revealed can bring the buyer and seller back to the negotiation table potentially dropping the accepted selling price in your favor in order to account for the unforeseen issues and needed repairs.
CITY HALL/REGIONAL DISTRICT
The building departments at City Hall, Town Hall, Village Hall, and Regional District provide valuable resources. Fees/costs can arise from the review and gathering of information in each properties file. Discussing future improvements, annexation of property into city, zoning, official community plan OCP, service expansions, and more can save you time and money and enhance your decision process.
CLEANLINESS
Everyone’s standard of cleanliness is different. There are no guarantees that a property will be left to your standards. Often the condition of the home at time of viewing will be left in the same condition at time of possession. We would hope that every home is left in “move in” condition, but it is not always the case and since it is such a subjective item, even writing it into the contract is no guarantee. To be on the safe side, count on cleaning it yourself or hiring a professional to do it for you.
GARBAGE
Unfortunately, some sellers do not remove all of their garbage before possession date. If at time of viewing an excess of garbage or debris is noticed it is best to put the removal request right in the offer. However, garbage removal does involve time and effort so be prepared for items to be left behind. Sometimes homeowners leave it thinking you would appreciate it. One person’s junk is another person’s treasure;)
GARBAGE/RECYCLING PICK-UP
Courtenay, Comox, and Cumberland have garbage pick-up and also recycling collection of plastics/paper. Glass currently does not have pick-up recycling. In rural areas, garbage/recycling pick-up is arranged by the homeowner with one of two companies currently servicing the area.
INSURANCE
Having Insurance for your home upon completion is extremely important and typically mandatory if you are taking out a mortgage on said property.
*Typical SUBJECT TO in an offer.
KEYS
One or some of the keys will be turned over to the new homeowner on possession day of the contract and not before. Real estate agents can rarely release keys early as there are insurance concerns, so plan around the date and time negotiated on the contract. Because some homeowners misplace, lend, and lose keys it is recommended to have the house rekeyed for peace of mind.
OIL FUEL
Furnace Oil is a “chattel” and is not necessarily included unless specifically agreed to in the contract of purchase and sale. The previous owner can expect that you will be paying for any remaining oil (probably on the statement of adjustments) or the oil may be pumped out.
SECURITY SYSTEMS
Some security systems are on a month to month rental contract, some are monitored and some are not. Some equipment are on leases. This should be dealt with in the contract of purchase and sale to ensure you don’t take over equipment that is leased and has an outstanding debt that you could inherit.
SEPTIC SYSTEM
Septic systems and tanks are commonplace in and around the Comox Valley.
A septic system can be just as efficient as a municipal system, but special care and attention need to be given to what goes into them. An inspection by a professional company can identify any problems so that a resolution can be sought prior to the purchase becoming subject free. You may receive information outlining the proper care and maintenance of a septic system. Septic system solids need to be pumped out every 2-4 years depending on size of family, size of tank and heaviness of use.
SITE SURVEYS
A mortgagor may require a site survey, although title insurance can be purchased instead. If you know you are planning to build a fence or outbuilding, or if the property lines are indiscernible a site survey may be required. Typically it will be requested on the offer as a subject, but if one is not available then plan for this expense.
PROPANE/OIL TANKS
Many propane tanks are leased, in which case the propane company will require new owners to sign a new lease agreement. Above ground oil tanks can also face agreements for service and supply. If an above-ground oil tank needs removal it can be done fairly easily. In ground oil tank removal/remediation can be very expensive and a timely process. Insurance companies are often requiring that tanks have a tag identifying its age and other certification. In-ground tanks can be problematic requiring environmental reports, and if contamination of soil is present, may result in an expensive remediation process.
TENANTS
Unless a lease is in place, most tenants are on a month-to-month tenancy. There are very strict guidelines in the Residential Tenancy Act dealing with tenant’s rights. If you are purchasing a house with the intention of renting it out, the tenants there when you view will be become your tenants. Look carefully at the way they are keeping your potential house. If you are planning to move into the house, “notice to vacate” will be given once the contract becomes “subject free”. The subject time period is typically 60 days-notice from the beginning of the next month. If a move-in date is needed in less than 90-days serious consideration should be made as to necessary alternate accommodation until such time as home is vacated and move-in ready. This will add to the cost of your purchase.
UTILITIES
Once your offer becomes unconditional you should contact all utility providers you will require and inform of completion/possession date so utilities can be ready for you and to ensure no interruption to services. Plan to contact Hydro, Telus, Shaw, and Fortis Gas. This is extra important if the property is a rental as the tenants will be cancelling their accounts potentially before you take possession.
WATER
Municipal water costs are often included in your property taxes. For rural properties, water may be on a localized system with quarterly billing and is in addition to property taxes. Having the previous seller report “lots of water” regarding a property serviced by a well is no guarantee that the same well will meet your needs. Plan for the expense of quality and quantity inspections to ensure plenty of safe water to use.
ZONING
Describes the control by authority which designates legal areas in a municipality to permit and prohibit land uses. Zoning may specify a variety of outright and conditional uses of land. It may also indicate the size and dimensions of land area as well as the form and scale of buildings. These guidelines are set in order to guide urban growth and development.
Areas of land are divided by appropriate authorities into zones within which various uses are permitted. Thus, zoning is a technique of land-use planning as a tool of urban planning used by local governments in most developed countries. The word is derived from the practice of designating mapped zones which regulate the use, form, design and compatibility of development. Legally, a zoning plan is usually enacted as a by-law with the respective procedures.
There are a great variety of zoning types, some of which focus on regulating building form and the relation of buildings to the street with mixed-uses, known as form-based, others with separating land uses, known as use-based or a combination thereof.