….are the new “make sure you get this right” in real estate transactions

Home inspections are very important, but when you compare the size of the potential $ risks, shoddy survey due diligence could cost you a lot more. Here is what the seminar reported to me.

For years, many home sales closed with the “available” survey – a 30 year old survey, a sketch of the property, photocopies of parts of a survey that contain the house being sold, or a subdivision plan to name a few. Meanwhile, owners had been initiating improvements (fences, decks, outbuildings, pools, etc.) to the land, making assumptions and probably without consulting a good survey.

So then things like this started happening…. example, true story in Ontario – homeowner had been in a 50+ year old home for several years bordering a schoolyard. The school became excess baggage because of the declining children count. School board sold the property to a developer. Three months later owner received a registered letter from the developer’s lawyer. It said 30 feet of his backyard and 1/8 of his backyard pool was on the developer’s property!

Fact: 49% of property sales in the GTA have 1 or more hidden boundary issues – fences, walls, driveways, decks, sheds, garages, right-of-ways, easements, existing encroachments, etc. (Source: Krcmer Surveyors, Teranet, TREB)

Happens with: older neighborhoods, shared driveway/access issues, large estate lots, newer subdivisions/homeowner installed fences, etc.

How can you as seller or buyer prevent this from happening?
Most simply, have a recent survey or get access to a complete survey that displays the property and all of the buildings and additions that currently exist. I/your agent can help.

Benefits:
Cleaner deals
Peace of mind – know what you are buying or are selling
Protect against failed closings and/or property lawsuits later

Let me know if you have questions or comments.