Real Estate Talk: Two time savers for sellers

Why create a new certificate of location and have a pre-inspection at listing

By Joseph Marovitch

A property does not always require a new certificate of location. A certificate is required if the property has had structural, municipal, or cadastral changes during one’s time as the owner. Sometimes a financial institution may ask for a new certificate if the current certificate is older than seven years. However, legally, a new certificate is only required if changes have occurred between the time an owner purchases and sells a residence.

If the owner did make structural changes or if the city rezoned the property, the seller is responsible to provide an up to date certificate. If no changes have occurred and the bank is requesting a new certificate anyway, then it is the responsibility of the buyer to pay for and provide a new certificate.

I recently sold a property for a client. I asked the client to acquire a new certificate of location at the beginning of the listing because I found there to be changes on the property such as additional permanent structures. The client preferred to wait until we had an offer.

If a new certificate is required, it is best to have one prepared at the beginning of the sale process. It does not take much to lose a sale and delays that can be avoided, should be avoided.

I also noticed a crack along the floor in the basement. I suggested a pre-inspection to determine the extent of the crack. The client again decided to wait until we had an offer. After seven months, we finally received an acceptable offer. Upon inspection, the inspector suggested the buyer hire a foundation specialist.

The foundation specialist determined there was a structural issue. The buyer then hired a contractor to provide an estimate for repairs. The estimate was in the thousands of dollars and the time for repair would be about three weeks. At the same time, we requested a new certificate of location and the surveyor indicated he was backlogged, and it would take about four and a half weeks instead of the usual three.

Suffice it to say, we almost lost the sale. To compensate for the time loss and expense of foundation repair, the seller accepted to reduce the price of the sale.

If a new certificate is required, it is best to have one prepared at the beginning of the sale process. It does not take much to lose a sale and delays that can be avoided, should be avoided.

‘… if the seller is aware of issues that can devalue the property at the beginning, they have the choice to repair the issue, which will add value to the property or reduce the price so the buyer can make the repairs.’

A pre-inspection removes almost all surprises and aggravation. If there are issues that can devalue a property significantly, the seller will inevitably deal with them either now or later. If they are dealt with at the beginning of a campaign, the selling process is much easier. As well, if the seller is aware of issues that can devalue the property at the beginning, they have the choice to repair the issue, which will add value to the property or reduce the price so the buyer can make the repairs.

Know this, if a seller invests a dollar, the selling price of that repair should be two or more dollars. If a buyer must repair a property with time and money invested, the buyer will also spend a dollar but will request a three dollar or more reduction.

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Next article: The real estate market during the holidays! We’re not travelling…

State of the market

Downtown commercial and residential property is in peril but presenting positive opportunities for the future. Retailers are suffering and offices are empty but for investors, there is an opportunity to purchase condos and commercial buildings at a discount. We will find a way around or through the pandemic and when we do, demand will pour out and prices will rise. For those who invest now, the future is promising.

‘Retailers are suffering and offices are empty but for investors, there is an opportunity to purchase condos and commercial buildings at a discount.’

For those in the retail or restaurant business, there is an opportunity to acquire prime locations at a discount and take their time with possession dates. Either we will acclimatize to the pandemic or find a cure. Like the real estate market, there is great pent up demand to get out and party. People want to go to dinner, have drinks, socialize, and live. When the green light arrives, and it is deemed safe, our nature to get out will not be quenched easily. We can be certain the public will drink life with a vengeance.

In the meantime, wear a mask, wash the hands, and maintain a distance so that any of this will matter.

Have a great week, stay safe!

Let’s not forget that people with cancer are vulnerable too!

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Feature image: Public Domain

Other articles by Joseph Marovitch