Real Advice with Rita: Chattel, Financing Alternative Homes, and Home Inspections

By Rita for REALTOR.ca

Hi Rita,
I’m interested in buying a condo townhome. If maintenance fees cover exterior repairs, is it necessary to include a home inspection condition with my offer
-Inspection Inquirer

Hi there,


 

Typically, I like to rely on an old proverb, “better safe, than sorry,” when I’m asked about home inspections.


However, there are other factors to consider when purchasing a property considered to be a condominium (or strata), rather than a freehold.


In some instances, condo buyers will opt not to do an inspection. They rely on status certificates, which identify any major issues the condominium corporation has taken care of or needs to address regarding exterior elements and common areas such as the lobby, hallways, roof, courtyard, etc. The certificate will give you an idea on things like whether the roof or siding needs to be replaced in the near future and if the condo corporation has the funds to make those repairs.


Be sure to review the status certificate with your REALTOR® and real estate lawyer as the certificate will outline the financial health of the condo.


There are blind spots that wouldn’t be identified in a status certificate namely, any issues inside the actual unit. That’s where an inspection comes in. This is particularly important if unit owners are responsible for their own heating and cooling systems.


While condo fees will cover maintenance and repairs to shared spaces, as a condo owner you’re responsible for the upkeep of your unit, so you’ll want to know if there are any red flags.


Ultimately the choice to skip an inspection is yours to make, but your REALTOR® can advise you on any risks specific to your situation.


If you decide to move forward with an inspection, you may want to add a clause or condition to your offer to make it conditional on an inspection and/or review of the status certificate. Your REALTOR® can help you navigate the offer process, including how to make your offer stand out.





 

Hi Rita,
I recently bought a home, but the seller didn’t include any of the appliances in the sale. Is that unusual?
-Appliance-less

Hi Appliance-less,


I wouldn’t use the word “unusual”, but sellers usually don’t take appliances with them.


While many sellers include things like the refrigerator, dishwasher, and microwave, not all do. It’s completely within their right to do so—if they state it in the listing and agreement of purchase and sale.

 

This is a simple case of chattel versus fixtures.

Chattels are items that can be easily moved or removed from the property without causing damage. Microwaves and refrigerators, for example, would fit into this category. All you need to do is unplug the item and lift with your legs.


Fixtures, on the other hand, are typically items that are built-in, cannot be easily moved and would likely cause damage to the property if moved. There are always some grey areas because “difficult to move” can be subjective. It would be hard for me to personally remove a hot tub, but it’s not technically attached to the property, so I could hire a crew to move it for me without damaging anything. (I’ve discussed other grey areas like flowers in a garden in past editions of this column).


While most appliances would be considered chattel, some might fall into the fixture category. For example, a built-in convection oven would be hard to remove and could damage the walls or cupboards surrounding it if it were removed.


To make sure there’s no confusion, sellers should include an extensive list of chattel items included with the sale and a list of chattel items excluded from the sale. Ideally, each item would include a description, and in some cases, a photograph.


You should always review the listing details and agreement of purchase and sale closely with your REALTOR® and real estate lawyer to ensure you know exactly what’s included or excluded in the sale.


Remember, you can always ask your REALTOR® to negotiate the inclusion of chattel items originally excluded from the sale.




 

Hi Rita,
I currently live in a small apartment and I’m looking to buy a place to call home. Most traditional homes are out of my budget. I’ve been looking at alternatives like floating homes, mobile homes, tiny homes, etc. Can I still get financing and will a REALTOR® be able to help me with the sale?
-Looking for Options

Hi Looking,


While some of the options you listed above may have a sale price lower than some traditional real estate, you may face challenges obtaining financing.


Tiny homes, floating homes and mobile homes can all fit into a grey zone between being a recreational vehicle/watercraft and a traditional real estate property.


Your REALTOR® can connect you with a mortgage broker or financial advisor who is familiar with financing unconventional homes, but getting a traditional mortgage for a mobile home can be more difficult.


In some cases, you may be advised to get a personal loan, chattel loan (sometimes called a personal property lien) or line of credit to purchase an unconventional home.


In addition to any financing obstacles, there may be bylaws or building codes you need to adhere to. This is particularly important when considering a tiny home that could be impacted by codes restricting minimum sizes, minimum clearances or other zoning bylaws. Contact your local municipality to learn more or ask your REALTOR® for their insights.


There’s also the physical location to consider. Do you need to find a park or community for your mobile home? Are there moorage fees for your floating home? Do you have access to the necessary hook ups (gas, electric, water, etc.)? Do you own the land the home sits on?


There are nuances to buying non-traditional properties, but a REALTOR® and real estate lawyer can help you understand this process to ensure you find the perfect place for you to call home.





 

Rita's article was initially published on REALTOR.ca.  You can find it by clicking here. 

Thanks for reading today’s BLOG!!!

Brian Kondo
Sales Representative / Team Leader
The Brian Kondo Real Estate Team
Re/Max Hallmark First Group Realty Ltd.
905-683-7800 office
905-426-7484 direct
brian@briankondo.com
www.BrianKondo.com
www.BrianKondoTeam.com

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