Ten things to look out for when you buy a house

A fresh coat of paint can hide a lot. In Ontario, the rule for anything a buyer could reasonably discover is “buyer beware”, so the checking is your job. Here is what to look for, and what to ask.

In the house itself

1. Old wiring. Knob-and-tube wiring in homes built before about 1950, and aluminum wiring in some homes from the 1960s and 70s, can be hard to insure. Ask what the wiring is and whether an electrician has inspected it.

2. Old plumbing. Galvanized steel and lead pipes in older homes, and Kitec plumbing installed in some homes between the mid-1990s and mid-2000s, are prone to failure. Replacement is expensive.

3. Water in the basement. Look for stains at the base of walls, a musty smell, fresh paint on only the lower part of a wall, or a dehumidifier running. Ask directly whether the basement has ever leaked or flooded.

4. The roof. Ask how old it is. Asphalt shingles last roughly 15 to 25 years. Curling or missing shingles mean a bill is coming.

5. The foundation. Hairline cracks are common. Wide, horizontal or stair-step cracks, and doors or windows that no longer close square, need an expert opinion.

6. Furnace, air conditioner and windows. Ask the age of each. A furnace near 20 years old is near the end of its life.

In the paperwork

7. Rented equipment. Water heaters, furnaces and air conditioners are often rented. You would take over the contract. Ask for the monthly cost and the buyout amount before you offer.

8. Work done without permits. A finished basement, an addition or a second kitchen may have been built without a permit. That can become your problem with the city and with your insurer. Ask for permits and final inspections.

9. Basement apartments. “In-law suite” and “income potential” do not mean a legal second unit. If you are counting on the rent, confirm that the unit is registered and meets fire code.

10. What stays and what goes. Appliances, light fixtures, window coverings and the shed should be written into the offer. If it is not in the agreement, do not assume it stays.

How to protect yourself

• Make the offer conditional on a home inspection, or inspect before you offer when there is competition. A few hundred dollars can save you tens of thousands.
• Get an insurance quote during the condition period, especially for an older home.
• Have your lawyer search the title for liens, easements and unpaid taxes.
• Buying a condo? Read what to check before you buy a condo.

Sellers must disclose hidden defects that make a home dangerous or unfit to live in, but they do not have to point out what you could have found yourself. When we show you a home, we tell you what we see, including the reasons not to buy it.

General information for Ontario, not legal, tax or financial advice. Rules and rates change, so confirm details with your lawyer, lender or accountant.