Choosing an Agent for Rural, Condo or Investment Properties in London, Ontario

Houses, condos, farmland-edge properties and rentals are different purchases. Beyond general skills, an agent should show specific knowledge of the type of property you are buying. Here is what to look for in each case, and what you should ask regardless of who you hire. For the basics of checking an agent, see our guide to finding an agent you can trust.

Rural properties: wells and septic

Many homes outside the city rely on a private well and a septic system instead of municipal water and sewer.

Well water. The Middlesex-London Health Unit says free E. coli and total coliform testing is available for private residences through the London Public Health Laboratory. Sample bottles are available at several local pick-up locations, and samples should be dropped off the same day they are collected. Testing for chemicals or other contaminants goes through a licensed lab that charges fees. The Health Unit notes that water quality can change after heavy rain, flooding, snowmelt, well repairs or nearby construction. See the Health Unit’s private well page.

Septic. Most rural house systems fall under the Ontario Building Code, with enforcement handled locally by the municipality, a board of health or a conservation authority. A good buyer’s process is:

• Ask the seller for permits, pumping records and any past inspections.
• Ask the local building department for the permit history.
• Hire a qualified septic inspector rather than assuming a general home inspection covers it.
• Ask your lawyer to build well-water and septic conditions into the Agreement of Purchase and Sale.

Our agents should be able to explain what can be inspected, who does it, and how timing works. Ask the questions above of any agent you interview.

Also ask about access (private roads, road maintenance), internet options, insurance, and fuel for heating, since these differ from city homes.

Condominiums: the status certificate

For a resale condo, the status certificate is the key document. The Condominium Authority of Ontario (CAO) describes it as a disclosure package on the unit and the condo corporation. Under section 76 of the Condominium Act, 1998, it sets out information such as the monthly common expenses, arrears, the reserve fund, the budget and any special assessments or lawsuits. Review it with your lawyer.

Things worth checking:

• Common element fees, and how they have changed.
• Reserve fund health, and when the last reserve fund study was done.
• Special assessments that are in place or being planned.
• Rules and by-laws, including pet, rental and parking rules.
• Insurance and any pending legal action.

The CAO’s Condo Registry is a good place to look up a condo corporation. A good agent will know when to ask for the certificate and will give your lawyer enough time to read it.

Investment properties

Whether you are buying a duplex, a rental condo or a house to rent, the agent you choose should be comfortable with numbers, not just showings. Questions to ask:

• How do you work out expected rent, expenses and vacancy for a property? Ask for the assumptions.
• What local rules or licensing apply to rentals in this municipality? (Confirm with the City of London or the relevant municipality.)
• How are condo rental restrictions handled?
• Do you work with lawyers and accountants who understand rental property?

Some tax points depend on your situation. For instance, Canada’s principal residence exemption does not apply to a property that is not your principal residence, so ask your accountant how a future sale would be taxed. Mortgage rules for investment properties also differ from owner-occupied ones, so confirm with your lender.

Do not treat any projected return as certain. Rents, interest rates and vacancy can all move.

Matching the agent to the job

Look for an agent who:

• Can describe, in plain words, what to check on this type of property.
• Is willing to bring in specialists (inspectors, lawyers, accountants).
• Shows recent work on similar properties and explains it without exaggeration.
• Is clear about representation agreements and multiple representation.

Next steps

Tell us what type of property you are considering and your timeline, and we will go through a checklist with you. See our buyer guide or contact us.