Porter Ramsay is pleased to provide information on various legal topics that are relevant to residents of the Okanagan. This information is written by lawyers at our firm.
Buying a Home
Research Your Purchase
A home purchase is often the biggest expenditure most people will make, so it is important to spend time investigating the property before making an offer to purchase it.
Always ensure that the property can be used in the manner in which you want to use it. For example, if you are buying a lot, you may need to determine if you are able to build your specific house on it. You should check on the available construction space on the lot, review building schemes and development guidelines and confirm zoning.
In-Law Suite?
If you are buying a house with an "in-law suite," be aware that it is probably not a legal suite (approved by the City). An in-law suite is one in which certain living facilities have been constructed for use by family members only. It does not mean the suite can be rented out.
A legal suite is in a properly zoned area which has been constructed to all building codes and regulations set out by the City or municipality. Legal suites can be rented out and a portion of their income may be taken into consideration by your bank when determining your income for borrowing purposes. If someone finds out that you have tenants in an illegal suite and complains to the City, the City will force you to evict your tenants and may impose a fine. This can have very negative consequences if you were relying on the rent to meet your mortgage payments.
Title Search Benefits
A title search, available from your realtor or lawyer, can reveal a great deal about your property. You should consider obtaining legal advice about any of the charges that are registered against the property such as:
- Easements - can allow someone to travel over a portion of your property to have access to their own, such as when two properties share a common driveway.
- Rights of Way - may allow someone to have access to your property for a specific purpose, such as to install and maintain a utility service.
- Undersurface Rights - whereby the Crown retains the rights to minerals located under the surface of your property.
- Restrictive Covenants - can take many forms, but often restrict your use of the property. For example, they can provide that no building can be constructed within a certain distance from a nearby creek, or that no additional access is allowed from your subdivision onto a nearby busy street.
- Building Schemes - restrict or govern your use of the property and the buildings on it by providing, for example, that your house must be constructed out of specific materials or in a selected design or that you cannot have farm animals or operate a business on your property.
- Other General Covenants - make you aware of certain conditions, such as the possibility of flooding in areas near creeks, the existence of a community water system and the fees that may come with that.
Points to Note
- Financing - You may wish to get pre-approved so you know how much you can borrow when buying a house, but keep in mind that you will have other living expenses and emergencies to plan for as well. Make your offer subject to financing, even if you are pre-approved. Some pre-approvals mean more than others, and the bank still has to be sure that the house is worth what you offer for it.
- Closing Costs - Remember to include additional costs such as a survey certificate, appraisal fees, house insurance, Property Transfer Tax, utility hookups, property taxes, moving costs and redecorating costs. These costs often add up surprisingly quickly.
- Home Inspection - You may wish to have the house inspected by a qualified home inspector to determine if there are any potential problems with it. Even if the house is in good condition, a home inspection report can point out upcoming repairs and maintenance so that you can plan and budget for them.
These are just some of the many issues that you will need to address when buying your home. Porter Ramsay has several lawyers who specialize in the area of real estate – see our Areas of Practice page.
Legal Links
- Canadian Bar Association
- Law Society of British Columbia
- Revised Statutes and Regulations of British Columbia
- British Columbia Superior Courts
- Provincial Court of British Columbia
- Consolidated Statutes and Regulations of Canada
- Public Guardian and Trustee for British Columbia
- Economic Development Commission