You’re not exactly a first-time homebuyer, but you are fairly recent to the market. That’s because the condo or house you bought secondhand was probably constructed within the past year. There’s a strong possibility you’re still covered because Tarion provides a seven-year warranty on every home built in Ontario.
Questions like “How does the warranty get transferred from the previous owner to me?” are reasonable at this time. as in “What if there are pending warranty claims?” Consider these three points before you make some of the same mistakes that other owners make Exchange of keys by hand A transfer of the warranty is not implied.
The Property's Age
Although “old is gold,” at what point does it become unusable? For the most part, homes older than 40–50 years should be avoided. The building and the house may have sustained significant structural damage by now. You’ll need to spend significantly more money than you planned on due to the extensive remodelling and unanticipated repairs.
The Bylaws and Regulations of the Association
Buying a house in a community always involves joining an association that has control over the running of the community. To find out if any alterations or additions to the home you’re looking to buy are prohibited, you should contact the relevant authorities. Some communities set restrictions on what kinds of renovations can be done, when such renovations can be done, etc. Before purchasing a home that will require extensive repairs, it is wise to seek the blessing of the local building association.
Insurance premiums and a deposit on a house
It’s important to remember that the insurance payout you receive when purchasing a previously owned property will be less than if you were purchasing a brand new home. You’ll need a larger down payment to purchase a resale home than you would for a brand-new home, typically 20% or more.