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MEMORANDUM RE: PURCHASING HOME
How should I co-ordinate my moving arrangements with the Vendors?
Any moving day is an exciting but hectic experience. The purchasers of a home are anxious to take possession and the vendors are of course, anxious to complete their new arrangements. Coordinating the moving arrangements of both Purchasers and Vendors can be an ordeal, however most of these difficulties can be offset in advance.
The best way to minimize the confusion on the closing day is for the Purchasers and Vendors to contact each other either directly or through your respective Real Estate Agents and co-ordinate your moving arrangements. I would suggest that you undertake this step now since the Agreement of Purchase and Sale has been signed.
Initiating communication between the moving parties will ensure a successful and uncomplicated transition on moving day.
SIGNING YOUR CLOSING DOCUMENTS
What is my Lawyer doing after the deal is firm and I have waived all my conditions?
During the interim of your real estate transaction, your lawyer's office will receive, deliver and compile various material from Banks, Lawyer's offices, Conveyances and Real Estate Agents. As you might expect, much of this documentation in it's final form is simply not available until shortly before closing.
When do I have to see my Lawyer?
Most lawyer's offices will intentionally co-ordinate with you for your attendance at my office several days or even the day before closing to sign the documentation. Therefore you may expect to make arrangements with your employer to arrange time-off to meet and review and sign the documents. You can expect to spend as much time as is required to sign documents, ask questions and have your concerns addressed.
MEMORANDUM RE: BUILDING PERMITS
Why do you need a building permit?
For the most part, building permits are required by the municipality to:
i) ensure your project complies with the Ontario Building Code and all other relevant codes and bylaws;
ii) ensure safe conditions and avoid personal injury to occupants and neighbouring residents; and
iii) prevent legal complications when trying to re-mortgage or sell your home.
When do you need a permit?
Any time you wish to undertake a renovation, build an addition, add a chimney or woodstove, install a pool, build a deck or shed, install or alter plumbing, finish your basement, install a new heating system, or create a basement apartment.
What are the benefits of obtaining a permit?
To verify compliance with the construction standards set out in the Ontario Building Code and other relevant codes and bylaws; to encourage persons which you have hired to produce a product that meets or exceeds the minimum standards as set out in the Ontario Building Codes and By-Laws. As well, the building department will provide assistance on proper methods of construction including plumbing, heating, air conditioning and ventilation.
How do I obtain a permit?
You may visit your local City building department (in Guelph, located at 2 Wyndham Street North, 2nd Floor, 837-5615). In order to process the application expediently, you will be required to provide City Staff with certain information, ie. drawings, estimates, names and addresses of contractors, etc.
When can construction commence?
As soon as you are issued a permit you may commence construction. At certain stages of construction, you will be required to call the City for inspections. An inspection schedule will be provided to you when the permit is issued. This schedule of inspection will indicate the inspections required for your particular building project.
MEMORANDUM RE: BASEMENT APARTMENTS
Are basement apartments 'permitted'?
The Province of Ontario agreed to permit two self-contained dwelling units in most detached, semi detached and row houses.
Are basement apartments 'legal'?
Not necessarily. While the province permits basement apartments, in order to legalize a second unit, owners must satisfy new minimum fire safety standards under the provincial fire code. In other words, existing apartments are permitted today but potentially illegal next year .
Smoke alarms have been mandatory for a year .The start date for the other new rules is July 14th 2004.
What does this new regulation deal with?
There are four issues which these new regulations deals with:
i) fire separation between dwelling units;
ii) means of escape;
iii) fire alarms and detection;
iv) electrical fire safety.
What happens if the dwelling units do not comply?
Non-compliance could mean a fine up to $25,000.00, or more than one year in prison, or both. If a tenant died or was injured in a fire in a basement apartment that violated the fire code, a civil action could be advanced.
How can I find out if the units comply?
Two different inspections must be carried out to clear a property; one from Ontario Hydro and one from the local fire department. A preliminary inspection will indicate the work needed to upgrade the property followed by the final inspection. If remedial work is significant, a building permit may be need too. Clearance certificates will be issued by Ontario Hydro and the local fire department.
How can I protect myself?
Before signing an offer to purchase a home with two dwelling units , ask if it has been inspected and approved. Request the clearance certificates by delivered on closing. A conditional clause can be added to the Agreement of Purchase and Sale with respect to this issue. If the property hasn’t been inspected and approved, learn the cost to upgrade the unit and factor that into the price. You can expect that mortgage lenders will require these clearance certificates when financing a home with a basement apartment. Ask the right questions at the right time and consult a lawyer prior to signing any offer to purchase a home with a basement apartment.
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