A survey allows clients to know exactly what they are buying, including fence lines, easements, encroachments, location of structures and other visual matters not covered by title insurance.

According to the Association of Ontario Land Surveyors’ pamphlet (http://www.aols.org) called What Real Estate Professionals Should Know About the Role of the Professional Surveyor in the Real Estate Transaction, “If there is any doubt or if there are any questions about a survey or the boundaries of a parcel, then a Professional Surveyor should be contacted to protect the interests of both the Real Estate Professional and the client.”

Real Property Report
A Surveyor's Real Property Report (SRPR) is a legal document that clearly illustrates the location of all visible public and private improvements relative to property boundaries. It generally takes the form of a plan or illustration of the various physical features of the property along with a written report highlighting the surveyor's opinion of any concerns. In a real estate transaction, the SRPR can be relied upon by the purchaser, the seller, the lending institution, the municipality, the REALTOR® and all other parties to the transaction as an accurate representation of the property.

Although REALTORS® can offer guidance when it comes to suggesting property surveys, only a trained and licensed Ontario Land Surveyor can legally prepare an SRPR. An SRPR can help REALTORS® to avoid potential lawsuits resulting from misrepresentation in the offer to purchase related to property boundaries and improvements. However, as with all areas of real estate, never advise clients on matters outside of your area of expertise.

If you are unsure whether a survey is necessary, suggest your clients discuss the matter with their lawyer. The Law Society of Upper Canada advises Ontario lawyers that, “The lawyer should advise the client of the options available to assure title in order to protect the client's interests and minimize the client's risk.”

According to the AOLS, the survey report will include the following:

• a search of title of the subject and abutting properties,
• a search of all pertinent encumbrances registered against the title of the subject property,
• a search of other surveyor's offices to obtain all plans relating to location of boundaries of the subject property,
• a field survey to determine the actual dimensions of the property, the location of improvements and the setting of corner markers,
• an analysis of research and field data,
  • the preparation of the plan illustrating the results of the field survey and the title research,
• the preparation of a written report providing the surveyor's opinion about any contentious issues that may have been found during the survey.

Because of the amount of work and detail involved, surveys generally cost significantly more than title insurance. However, while it may sometimes be marketed as a way for home buyers and sellers to save money, title insurance does not take the place of a survey.

Although residential real estate prices in Toronto may be beyond the reach of many prospective purchasers of average means, there are some "bargains" not generally recognized. Co-ops and Co-ownership units, usually apartments, but occasionally townhouses - typically sell for 15% to 25% less than Condominiums of equal quality in comparable locations.

It is true that caution must be exercised. Some buildings have legal structures which carry certain risks or which otherwise adversely affect the marketability of the units. However, there are a number of buildings which have incorporated many if not all of the Condominium style protections. These units can be good investments and have been shown to appreciate as other residential properties do.

HOW DO THESE STRUCTURES DIFFER FROM A CONDOMINIUM?

CONDO

In a Condo, a purchaser acquires legal title to a unit while at the same time becoming an owner of a percentage interest in the common elements and a member of the Condominium Corporation.

CO-OWNERSHIP

In a Co-ownership, the owner holds a percentage interest in the entire building (registered on title) and possesses the exclusive right to occupy a unit by virtue of an exclusive Licensor Co-ownership Agreement (registered on Title).

CO-OP

In a Co-op, a corporation is the registered owner of the property. The purchaser takes shares in the common stock of the corporation and has the exclusive right to occupy a unit by virtue of a Proprietary Lease or Occupancy Agreement.

One of the major considerations in the purchase of a Co-ownership or Co-op is the availability of financing. Some Schedule "A" banks and trust companies will routinely finance certain approved buildings for individual unit mortgages or loans up to 70-75% of the purchase price and will allow small vendor take back 2nd mortgages to be registered.

Financing of buildings not structured for individual unit mortgages can be obtained from credit unions or syndicated funds at a somewhat higher rate.

Purchasers of apartments in buildings with blanket mortgages (mortgages registered against the entire building whereby each unit owner must assume a proportionate share of liability for the blanket mortgage) frequently must pay a high down payment of cash on closing because it is difficult to obtain a 2nd mortgage for the difference between the purchase price and the pre-existing fixed portion of the blanket mortgage that must be assumed by the individual unit owners. (Today most co-ops and co-ownerships have paid off their blanket mortgages.)

For example: Unit Cost: $100,000 - $25,000 down - assume $75,000 share of blanket mortgage - resell 2 years later $135,000 - purchaser must have $60,000 cash down to the existing mortgage. This was/is the problem with the blanket mortgage.

SOME PERTINENT QUESTIONS TO ASK ABOUT CO-OWNERSHIPS
& CO-OPS

1. Was the building originally built as a residential co-ownership or co-op (as many were in the 1950's)?
   
   
2. If it was originally a rental building, was the building legally converted under the Residential Protection Housing Act of 1986?
   
   
3. Has the blanket mortgage on the building been discharged? If not, does the developer/vendor indemnify the purchaser from liability for the blanket mortgage?
   
   
4. If consent of the Co-ownership or Co-op is required to sell the unit, are the grounds for refusing consent limited, as it the usual case, to matters of credit only?
   
   
5. Does the building prohibit renting? Most do not.
   
   
6. If renting is permitted, what percentage of the units are owner occupied?
   
   
7. If the Co-ownership or Co-op controlled and managed by the person who converted the building from a rental operation to Co-ownership or Co-op or is the property managed by a professional property management firm?
   
   
8. Are there current audited statements and budgets available?
   
   
9. Does the Co-ownership or Co-op maintain a reserve fund for major repairs and replacements?
   
   
10. Is there a standard Status Certificate available with substantially the same assurances and protection as can be found in Condominium Certificates?

In summary, there are buildings as secure as condo's and there are others which to a greater or lesser extent carry certain risks or drawbacks. Real Estate agents specializing in Co-ownerships and Co-ops can identify those buildings which are good investments

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