Summertime… and the living is easy… unless you’re representing buyers interested in purchasing a recreational property, and these transactions require you to complete due diligence on matters unique to this property type.
Following are three basic steps to consider in these types of transaction.
First, determine which type of recreational property your clients want or can afford. They fall into five categories: seasonal (non-winterized and only used during the summer months), winterized year-round cottages, country homes, chalets, and hobby farms.
Second, determine if there are any title and legal issues surrounding the property, such as:
• easements or encroachments
• legal restrictions or rights
• disputes concerning property boundaries
• disputes concerning ownership of fences
• ownership of shoreline
• location of improvements made to the property
• local zoning bylaws
• impact of the Ministry of Natural Resources
• property accessibility via private road
Third, determine services to the property, such as:
• sewers or septic system
• location, size, and maintenance of septic system
• water supply source (e.g., municipal, private well, community well)
• quality and quality of water (if not municipal)
The above is not a comprehensive list. It is meant to help you recognize the uniqueness of selling these types of properties.
Reference: Ontario Real Estate Association and Acronamic Learning Systems Inc. (May 2015). The Residential Real Estate Transaction. Don Mills, ON: Ontario Real Estate Association.
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