Five types of properties a buyer might consider when choosing to build a new home on include:
- Vacant urban lot – located within an area of the municipality where full municipal services are available.
- Infill redevelopment opportunity – In established neighbourhoods, a property may be redeveloped (e.g., demolition of one detached dwelling and replacing it by two semi-detached units) to increase the amount of housing on the land.
- An urban lot with a structure – A property is purchased that is developed with an older residential structure with the intent to demolish it and build a new home.
- Vacant rural lot – Located outside of urban boundaries and may not have access to services and amenities.
- Rural lot with a structure – An older structure on a rural lot to be demolished for a new home to be constructed.
Examples of due diligence actions include researching:
- developer deed restrictions,
- a restrictive covenant (a registration on title imposing a restriction on the use of land that is negative in nature; it is registered on title and “runs with the land”),
- permits (e.g., demolition, building, etc.),
- availability of services (e.g., hydro, fire protection, garbage, etc.), and
- if there is an easement (an easement is a right enjoyed by one property owner over the land of another owner).
- Also, consider getting a survey as it can show property boundaries, any easements on title, and when a structure is built, as well, it identifies setbacks.
Whatever a buyer decides, it’s important to always keep in mind third-party professionals to assist such as an architect, surveyor, land development lawyer, planner, environmental, heritage consultant and so forth.
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