The Buyers bought the condo and took possession in June of last year. In spite of a musty smell in the basement when they were shown the property, they did not have a home inspection done. Their Realtor told them an inspection was not necessary, they testified. Like quite a few other new homeowners, they soon would find out otherwise.

Soon after they moved in, the Buyers took out a wall between the kitchen and the den. Inside they discovered three dead mice. Exterminators later found in the basement walls a whole mouse city, with an estimated 100 nests. While no live mice were present, there were plenty of dead ones, some covered in maggots. Framing and drywall were ruined by mouse urine.

Read more here.

Like it or not, this story drives home the importance of conducting your own due diligence when purchasing a home. Most interesting, to me, is the reference to the newest Property Condition Disclosure Statement which urges buyers to have the property inspected. You simply can’t rely on the representations of a seller when it comes to property condition issues. No matter what your agent or the seller might say, courts expect buyers to take reasonable actions to protect themselves. Is a home inspection always a reasonable action? I think so. Apparently, the courts think so too.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Our Saskatoon home search tool offers MLS® listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

With summer’s kickoff on the way, it’s time to get your home in top shape for the months ahead. Whatever your weather, taking some time to take care of your home will help to ensure a worry-free, comfortable summer.

• Inspect siding for cracks and make any needed repairs.
• If paint is peeling, cracking, or chipped, repair and repaint now to limit damage to the underlying materials.
• Repair any damaged caulking around windows and doors.
• Remove window screens and clean with a soft brush and soapy water. Repair any holes or tears before reinstalling.
• Have air conditioning units serviced to ensure good operation. Promote good air circulation around the unit by keeping shrubs and plants trimmed.
• Clear debris from gutters and eaves to allow rainwater to drain properly
• Seal cracks in the driveway and keep walkways clear of debris and overgrown plants
• Test irrigation/sprinkler systems and replace any broken sprinkler heads or emitters. Check for proper water coverage and adjust if necessary.
• Power wash decks and patios and seal surfaces as appropriate.

• Vacuum refrigerator coils to help maintain energy efficiency.
• Empty dehumidifier pans and clean hoses according to the manufacturer’s instructions.
• If possible, take area rugs outside and hang them over a deck or porch rail to air out.
• Adjust ceiling fans for proper balance.
• Change filters in window-mounted air conditioning units.
• Switch heavy bedding out for lightweight summer fabrics. Have the winter bedding cleaned before storing.
• Close the chimney flue to prevent insects from entering and to help keep cool air in.
• Repot houseplants to give their roots a fresh start for the summer.
• Check door and cabinet hinges and lubricate any that stick or squeak.
• Open windows on cooler days to keep fresh air flowing throughout the home.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Norm Fisher
Royal LePage Saskatoon Real Estate

In recent years, the failure to obtain proper permits has become a much bigger deal, and in fact, a point of contention that has caused many residential sale transactions to collapse at the last minute. In instances where the transaction can be salvaged (the seller agrees to obtain and close the required permits and the buyer agrees to complete the purchase), it often involves lots of “jumping through hoops” for homeowners and real estate agents. Occasionally, these hoops are hard, if not impossible to clear in a short period of time.

Let’s not debate whether the government has a place in regulating what we do with our private property. As a real estate agent, I’m likely at least as geeked up about your property rights as you are. Insisting that the government has no place to tell you what to do and refusing to play by the rules may be an example of “cutting off your nose to spite your face” when it comes to the resale value of your home.

Building codes are intended to ensure safe construction standards are met to protect occupants from structural failures, potential fire hazards and electrical shock. When a Saskatoon home owner, or a contractor acting on behalf of a home owner obtains a permit for home improvements they commit to completing the work in accordance with current building codes. Ultimately, they allow access to a qualified inspector who inspects the work and verifies that the improvements meet the code. Where deficiencies exist, the inspector will require adequate repairs before the permit can be closed.

When a potential home buyer discovers that improvements were completed in your home without the required permits, they lose the assurances that the work was done correctly and safely. Even if the buyer is comfortable moving forward on that basis, a lender may refuse to provide financing, or an insurer may refuse to insure the home. On the other hand, if the proper permits were obtained everyone who has an interest in the purchase can have some reasonable measure of confidence that the improvements are durable, valuable, and most importantly, safe. Simply put, your home improvements add more value to your property when they are completed with a permit.

More and more, home buyers who discover missing permits after entering into a conditional purchase agreement are insisting that the proper permits be obtained and closed by the seller before the purchase is completed. In most cases, this is completely possible but it is almost always far more difficult and costly to do after the fact. It’s not something that you want to be doing when you’re trying to coordinate a move.

In a short series of future posts we’ll talk about which home improvements require a permit and how home buyers might discover that your home improvements were completed without one.

Mean time, here’s some building permit information from the City of Saskatoon and some electrical/gas permit information from SaskPower.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Norm Fisher
Royal LePage Saskatoon Real Estate

Vermiculite was one of a number of loose fill insulation products approved for installation under the Canadian Home Insulation Program (CHIP) that provided grants to home owners who improved energy efficiency in their property between 1977 and 1984. Health Canada believes that vermiculite was installed in approximately 250,000 Canadian homes during that time. There is no information available as to where vermiculite use was most common but I can tell you that I have run across Saskatoon homes containing vermiculite insulation a number of times during my sixteen-year real estate career.

Health Canada’s position is this; “If vermiculite-based insulation is contained and not exposed to the home or interior environment, it poses very little risk.” Perhaps this provides some comfort to homeowners who have vermiculite insulation in their home, but in my own experience, the presence of asbestos is a growing concern for home buyers. Asbestos which is contained and undisturbed may never cause you or others in your home health problems but there is some significant likelihood that it could cause problems in completing a home sale when you’re ready to move. Some home buyers may be totally disinterested in purchasing a home that contains such a potentially toxic substance insisting that it be remediated as a condition of the sale, or they may walk away from the deal all together once they know.

It’s important to note that not all vermiculite insulation contains asbestos. If you suspect that you may have vermiculite insulation in your home you should avoid disturbing it. Contact a qualified expert for assistance in obtaining a sample for testing. In Saskatoon, Pillar to Post Home Inspections is qualified to gather samples and they can submit them to a lab on your behalf for testing. Testing costs can vary from one day to the next, but generally, a range of $150-$200 is what you should expect to pay for the service.

If vermiculite is present in your home and it does not contain asbestos, a lab report will be helpful in eliminating the concern that potential buyers for your home may have when you’re ready to sell. If it does contain asbestos, you can decide to remediate now, begin saving for an eventual remediation, or you can choose to leave it and deal with it at the time of sale. Remember though, leaving it until that late stage almost certainly raises significant concerns for your prospective buyer and could derail your sale.

One should probably consider that knowing your home contains asbestos might require you to disclose its presence when you offer the home for sale. The Property Condition Disclosure Statement (PCDS), which is not mandatory for home sellers, but is commonly used in Saskatchewan, has the following question. “To the best of your knowledge does the dwelling contain asbestos or urea formaldehyde insulation?” If you know asbestos exists, you are legally required to answer this question in the affirmative, if you choose to utilize the form. Home buyers are often suspicious of sellers who refuse to complete a PCDS. Even if you choose not to use the form a buyer could argue that disclosure is required based on the potential health implications of asbestos. In any case, professional home inspections are so common that it’s doubtful that vermiculite in your home could escape scrutiny when selling.

Health Canada has some good information online about vermiculite and asbestos including precautionary steps you can take to avoid contaminating your living space if vermiculite containing asbestos is present in your home. Check it out here.

Related posts: Asbestos in the home.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Real estate geeks can follow our daily updates on Twitter @norm_fisher.

Our Saskatoon home search tool offers MLS listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

If you are a potential homeowner or are seeking to remodel an older home, exposure can cause many health concerns for you and your family. If you are interested in living in a safe, healthy environment, free of health damaging materials, here is some information to get you on that track.

Asbestos exposure can cause a debilitating lung ailment known as mesothelioma. This asbestos-related illness is one of the hardest for physicians to diagnose for a variety of reasons. The disease typically has a latency period lasting anywhere from 20 to 50 years when it has already reached its later stage of development. Its symptoms also resemble many of other less serious conditions. Mesothelioma treatment is usually limited to a handful of procedures and results vary from patient to patient. If your home or jobsite has had asbestos removed, exposure may have occurred previously and receiving a medical checkup is of the upmost importance.

Health Canada offers assistance and information in the prevention, disposal and removal of asbestos. They are federally responsible for helping citizens maintain and improve health at home and the work place. Homeowners should not disturb any suspected asbestos themselves as this makes its fibers airborne. The inspection and removal of toxic substances must be performed by licensed abatement contractors who are trained in handling dangerous materials. They work under provincial and federal regulations to ensure no health concerns arise from improper removal.

Once the area is asbestos free, environmentally sustainable materials should be considered including cotton fiber, cellulose and lcynene, water based spray polyurethane foam that can reduce energy costs annually. With the constant growth in technology, there is absolutely no need for health damaging materials such as asbestos.

Click for a larger image displaying potential problem areas for asbestos in the home.

A qualified home inspector can often detect the presence of asbestos and other potentially dangerous products that may have been used in home construction over the years. Put “healthy living environment” for your family at the top of your “wants and needs” list when shopping for a new home.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Norm Fisher
Royal LePage Saskatoon Real Estate

Cass poses a question in another post regarding the hot Saskatoon real estate market. By the time I finished my response I realized that I had written a whole new post so I brought it up front for the rest of you.

If any of my real estate friends have something to add I would really appreciate your input and I’m sure Cass would as well.

Cass said: My husband and I have put offers on 3 different houses and 2 were in bidding wars.  The last house we offered $7,000 over asking price and the house went for $26,000 over asking.  This house had a basement suite and the buyer came in and paid cash and is most likely using it as full revenue property.  This is the 2nd house we lost due to another buyer using it as revenue property.  Can you please give us some advice on how a young married couple with a baby on the way is supposed to compete in a market like this?  It tends to be very frustrating and discouraging when the houses in our price range are being scooped up by investors, as there isn’t too many decent houses on the east side for around the $200,000 mark.  We are fully aware and prepared to place an offer over asking, but how can you compete with someone paying cash?

Norm said: Cass, thanks for stopping. Cash sounds pretty impressive but when I’m reviewing offers it only goes so far with me. The seller is not normally very concerned with how the home is being financed.  However, cash offers do often come forward without any conditions attached and the thought of having a good offer completed right now is very attractive to most sellers. One of our sellers just accepted an unconditional offer which was $4,000 lower than the second best. They see some value in knowing that the sold sign goes up right now and that there aren’t going to be issues that have to be sorted out.

Perhaps you could see your mortgage person and tell them that you want to write your next offer without a finance condition. If that person can assure you that you’re good for $225,000 for instance there is probably little risk in eliminating that condition.

Request and review the Property Condition Disclosure up front. It’s always a good idea to ask your agent to “incorporate” the disclosure but if you view the statement prior to writing, you don’t need to include it as a condition.

The biggest gamble is the home inspection. Do you have the guts to write an offer that is not subject to an inspection?  It’s a tough call but the truth is that it’s rare that significant problems are found. Most commonly we see busted furnaces, grade issues, and other items which are relatively easy fixes. I don’t ever feel good about suggesting a buyer not have a property inspected, but the fact is this one is always a big concern for sellers, even those who are confident in their property. Do you have someone who could help you do a cursory inspection of a property prior to writing an offer? If you can’t get around this gamble, you might consider writing the home inspection condition in a different way which would allow you to back out if major problems are discovered but also provides the seller with assurance that you aren’t going to nickel and dime. “This offer is subject to a professional inspection of the property to determine structural integrity of the improvements. The buyer agrees that they shall have no right to rescind this offer for discovery of defects which do not exceed (insert amount here) in repair costs.”

Conditions like “satisfactory gas line inspection” or “review of local bylaws,” etc are bound to doom your offer. Do your homework in advance.

Scrape together as much money as you can for a deposit and show the seller your good faith. A $10,000 is a strong sign and it’s totally appropriate in this market.

Try writing the seller a personal note to include with your offer. Let them know who you are and how much you love their home. Tell them that you are very confident in the house (if you are) and how much you look forward to raising your family there. Ask them, “Is there anything else which we can do to have you favour our offer? We are open to discussing ways in which we can come to agreement. We really want to make your house our family’s home. We are available at a moment’s notice to address any concerns which you may have.”  Place the note in an envelope with the seller’s name on it and enclose it with the offer in another envelope.  Have your agent deliver it to the house when offers are presented. Go with him. Wait outside in the car. Be sure that the seller’s agent knows you are there; ready to deal with issues which concern the seller.

All other things being equal, most sellers would prefer to see their home go to a family instead of an investor. Try to use that to your advantage by giving the seller a little insight into who you are.

Good luck.  I really hope you get the next one.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Follow our daily updates on Twitter @SaskatoonHomes.

Norm Fisher
Royal LePage Saskatoon Real Estate

This is part two of Special Considerations for Saskatoon Condo Buyers. Part one is here.

In part one of this post, I discussed the various documents that are normally available for your review when purchasing a condominium. These documents are traditionally requested by the buyer as part of their offer and are provided following acceptance of your offer. If you have made your offer through a REALTOR® in Saskatchewan it will include terms that provide a “right to rescind” the offer should you discover facts about the condominium corporation which cause you to want out of the deal. The mandatory Schedule “C” used by real estate registrants in our province provides ten days for the seller to deliver the documents and five days for the buyer to review them. Part two is an overview of what those documents are.

The current Bylaws of the Condominium Corporation

The Bylaws define how the condominium corporation is structured and managed, including details on how the board of directors is formed and what authority the board has to act on behalf of the condo corporation. It should explain your rights as a voting partner in the corporation. It also details the rules and regulations of the corporation which all unit owners must agree to as well as what remedies exist when someone breaks those rules.

The latest financial statements of the Condominium Corporation and the last audited statements

This is an overview of the financial affairs of the condominium corporation including a statement of income and expense. You should be able to determine what assets are owned by the corporation, what liabilities exist and how the corporation has been utilizing the contributions made by its unit owners. Complex financial statements should probably be reviewed by your accountant who will have some expertise in identifying area of weakness or concern.

The current policy of insurance

The Condominium Property Act, 1993 requires that condo corporations carry insurance sufficient to cover the replacement cost of buildings and improvement in the event that a condo property is destroyed.

Any current management agreement regarding the Condominium Corporation

If the condo corporation has elected to use a property management service to perform certain functions on behalf of the corporation, details of that arrangement should be provided to you.

The current recent budget of the Condominium Corporation

An overview of estimated expenses of the condo corporation for the current year.

Written confirmation of parking/storage facilities and exclusive use areas included in the purchase price, any related costs or charges and any special rules regarding those areas

This one is pretty obvious but do be certain that you receive written confirmation of any areas which are designated for your exclusive use. In most cases the title to your unit only includes your actual unit. Parking stalls are most often part of the common area, portions of which are designated for exclusive use of specific residents. You must have written confirmation of your right to use a specific parking stall.

A current Estoppel Certificate issued by the Condominium Corporation pursuant to the regulations of The Condominium Property Act, 1993.

The Estoppel Certificate will normally include details on the following items:

· the amount of the monthly contribution (condo fees) levied against the unit you are purchasing;

· the extent to which that contribution has been paid;

· the manner in which the contribution must be paid;

· the portion of the contribution which is deposited to the reserve fund;

· the current balance of the reserve fund;

· proposed amendments to the Bylaws of the Condominium Corporation;

· amounts of any special levies which may be proposed which would affect the unit you are purchasing and;

· in most cases, exclusive use provisions for parking and storage are detailed here.

Perhaps the most difficult item to assess of all of those detailed above is the reserve fund. If a condo corporation encounters a significant expenditure which cannot be adequately covered by reserve funds, the corporation will issue a cash call and unit owners will be required to make up the difference. One cannot simply look at the balance of the fund and say, “Oh, that’s a lot of money,” or “That’s not very much money.” One must consider the overall condition of building and improvements and any possible costs which the corporation may encounter in the future to determine if the reserves are sufficient, and even then, it’s often a best guess for most people. This is a particular challenge with larger projects like high rise condominiums. I recently assisted a purchaser who bought a condo in downtown Saskatoon high rise. One of the budget items for this condominium was new caulking for the windows. The estimated cost was in the range of $70,000. This is something neither he nor I could have possibly considered or understood had that item not been disclosed to us. Apparently, neither could the condo corporation and consequently this item was dealt with through a cash call.

Recent changes to the Condominium Corporation Act requires all condo corporations with 12 units or more conduct a reserve fund study by January 31, 2008. The study must be updated every ten years thereafter. The study will be completed by an engineer who will assess the remaining life expectancy of the major components of the buildings and improvements, estimate the future cost to maintain, repair or replace those components and determine if the current reserves and the monthly contributions are sufficient to cover those costs. Many corporations have already completed their surveys. When shopping for a condo, you may prefer to consider those condos where the reserve study has already been completed, particularly if you’re purchasing part of a large project like a high rise.

Other Actions You Might Take

• Have the property inspected by a professional inspector who is qualified to assess the condition of major components of the buildings.
• Speak with directors of the condo corporation and ask questions about improvements they’ve been discussing. Ask specifically if there are pending decisions on major financial items.
• Speak with some of the current owners.
• Start reading the Condominium Corporation Act when you’ve decided to purchase a condo.
• Ask if a reserve fund study has been completed and if so, make your offer conditional upon receiving, reviewing and approving it.
• Work with an agent who is experienced in condo purchases and can guide you through this complex process.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Follow our daily updates on Twitter @SaskatoonHomes.

Norm Fisher
Royal LePage Saskatoon Real Estate

You can probably appreciate how much fun this kind of situation is for a home seller. You have a number of buyers drooling over your home, knocking themselves out to try to beat the next ones offer. How delightful. However, it’s not so much fun for the buyers is it? Been there? Yuck!

If you’re having trouble finding a house and you’re tired of participating in these kinds of bidding wars, perhaps it’s time to set your sites a little lower, to see ugliness as the beautiful thing that it is, or at least can be. Homes which have been neglected still attract very little attention. Buyers view them with indifference at best and total disdain at worst. They tend to linger on the market and fail to attract offers. Why is that? Most buyers are really unable to visualize and imagine what an ugly house could become. The truth is, there’s really only one thing that can’t be fixed if it’s bad, and that’s the location. Poor floor plans, ugly decors and even structural defects can all be addressed, at a price.

The same home which I discussed above may have lingered on the market at $165,000 if the seller had not been so diligent in keeping the place up. A couple of weeks into the listing period, a savvy buyer could likely have bought it for $160,000 leaving them with $100,000 in potential renovation room. The buyer would have actually had as much leverage as the seller in this negotiation, because in all likelihood they would be the only interested party. In all likelihood, an awesome renovation on a house of this size would be far less than the difference which was saved by buying a home which was not attracting much interest. Most mortgage lenders will allow you to work these kinds of renovations into the mortgage amount provided that the “as improved” value of the property doesn’t exceed the total purchase price and the renovation cost. So, you get to pick the new kitchen, the bathroom, the paint and flooring colours. Sounds like a winning move to me.

Try it! Have your agent show you some of the ugly stuff. Look at some properties that have been on the market for a week or two. Start by using location and size as the primary criteria and really think about how some of those dogs could look with a little bit of attention. Have fun! I’d love to hear how your agent responds the first time you say, “We really have our sights set a little lower than this. Have you got anything ugly that you could show us?”

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Follow our daily updates on Twitter @SaskatoonHomes.

Norm Fisher
Royal LePage Saskatoon Real Estate

All kidding aside the literal translation of the term means “let the buyer beware” and in general, it’s the position that the Canadian courts typically take when dealing with actions which arise over property condition disputes between real estate buyers and sellers.

It’s important to note that the law sees certain types of defects in different ways. The first type of defect is one known as a “patent defect.” A patent defect is one which would be discovered through a reasonably prudent inspection of the property by the buyer, or anyone else who inspects it on behalf of the buyer. The law is very clear that a seller has no duty to disclose such defects. It is assumed that the buyer conducts a reasonable amount of due diligence on their own behalf and would therefore be aware of these defects. The second category of defects is one known as latent defects. A latent defect is one which may not be so obvious to a buyer who is conducting a reasonable prudent inspection of the property. Now, the courts generally sees latent defects in two separate categories, some of which require disclosure by the seller, some of which may not require disclosure. A buyer is always entitled to disclosure of “material latent defects.” Of course, this is where shades of gray come into play but generally the courts consider a defect to be a material latent defect if it meets one of the following criteria.

• Renders the property dangerous or potentially dangerous to the occupants;
• Renders the property unfit for habitation;
• Renders the property unfit for the purpose for which the buyer is acquiring it where the buyer has made this purpose known to the seller or broker;
• Concerns local authority and similar notices received by the seller that affect the property; or
• Concerns the lack of appropriate municipal building and other permits.

Finally, the law does not expect a seller to disclose problems which he or she is unaware of and the burden of proof is upon the buyer to prove that the seller had knowledge, or ought to have had knowledge of existing material latent defects.

The most prudent course of action for any buyer is to make inquiries of the seller on issues of property condition. A seller has a legal duty to not misrepresent and can be held liable for blatant attempts to mislead a buyer. Secondly; a professional inspection of the property by a qualified inspector is a must.

Sellers who have property condition issues with a property they wish to sell should be forthright with their real estate broker and their lawyer seeking advise on their duty to disclose. My experience suggests that most condition issues can be dealt with in a reasonable manner if they are brought forward in a timely fashion, before the seller has accepted the buyers offer. If a buyer discovers material defects after possession they are far less amiable at working towards a solution. No wonder.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Follow our daily updates on Twitter @SaskatoonHomes.

Norm Fisher
Royal LePage Saskatoon Real Estate