Buying Condemned Properties
Published on 29 August 2022, 07:22:56 AM
Condemned, unfit and uninhabitable properties can be a great investment or insufferable money pit.
Buying condemned properties for profit is a game of skill and chance. The next time you come across a cheap real estate deal, ask if timing and opportunity are on your side.
Axess Law helps you realize your property buying dreams. We scrutinize real estate offers and close deals you take a chance on.
Selling Property for Profit
Lucrative properties are out there.
Four abandoned Toronto properties sold for $2.78 million sight unseen in 2019. The properties, seized by the city, were sold by public tender.
The city netted 76% over list price for the boarded-up homes, subject to tax arrears certificates for two or more years of overdue taxes.
Buying Foreclosures
It’s easy to find Toronto foreclosures and distressed properties for sale all over Ontario. Foreclosures happen when homeowners have:
- no or inadequate fire or flood water insurance
- property tax arrears that put their home at risk of seizure
- multiple, unaffordable mortgages, typically without lender approval
- substantial, unpaid credit card or credit line debt borrowed against the home’s equity
- or a home or lot in serious disrepair.
By the time a homeowner attempts to sell, it can be too late to make financial amends for skipped payments or overwhelming debts.
What Condemnation Means
Foreclosures typically go for fair market value, especially if a homeowner was unable to stop power of sale by their lender. Condemned properties are a riskier proposition.
They can be derelict to start with or a hazard from unpermitted or unsafe renovations. Seller property information statements (SPIS) are optional and municipalities may not permit pre-auction viewing. Unless you plan to build a new home, mortgages may be available for lot value only, not repairs.
What are you getting into?
Pros of Condemned Homes
- Cheap to buy
- Down market opportunity
- Perfect for investment property clubs
- Potential rebates for tipping fees
- Rebuild in a desired area
- You could get an easily fixed eyesore
Cons for Home Buyers
- Permits are needed for tear downs or rebuilds
- Building code infractions can be costly
- Modern codes apply for HVAC or electrical
- Redesigns may need upsized water lines
- Water infiltration creates hazards like black mould
- Pest and rodent infestations can be hard to stop
- Raccoons could have made your attic home
- Squatters and vandals can do major damage
5 Ways to Find Condemned Homes
Get creative if you’re looking for property deals.
- Stroll around transitional neighbourhoods for homes in disrepair. ServiceOntario’s online land registry has the PID and owner information.
- Check city hall or online for lists of condemned homes in your area.
- Flip through buy and sell websites for private foreclosed homes for sale Toronto or elsewhere.
- Ask lenders who give high risk private mortgages in Ontario about seriously neglected homes. They might refinance if the offer is right.
- Court-ordered sales can give you a lead on mortgage lenders with distressed inventories.
Flat Rate Fees You Can Afford
Sold on buying a condemned property?
Axess Law has flat legal fees any home buyer can afford. A real-time video call to close a real estate transaction costs only $999.99 and up plus HST for home buyers or $799.99 and up plus
HST for property sellers.
We give independent legal advice for $349.99 if you are uncertain what to do about a construction lien or dispute.
You pay far less and get the same great service you would at any traditional law firm in Ontario.
Why You Need a Real Estate Lawyer
Axess Law real estate lawyers (Toronto, Greater Toronto Area or Ottawa) handle all the legal details required to close real estate transactions on time.
We review agreements of purchase and sale before you sign. If you’ve already inked the deal, we explain terms and conditions to ensure you understand your legal commitments. We answer questions about what’s involved from making a deposit to getting the keys. (See common questions you ask our lawyers.)
Our professional legal staff hold your deposit in trust until all the conditions in your offer to purchase are met and your new mortgage, if any, is in place. We can discharge mortgages from other properties you own or liaise with your lender when you refinance mortgage terms.
Closing costs can be substantial. We negotiate with the seller’s lawyer to save you from awkward and expansive legal problems if you run into unexpected, last-minute snags securing financing. (If a real estate deal falls through, who gets the deposit.)
Flat Fee Legal Services You Can Afford
Hire an Axess Law real estate lawyer (Ontario only) when you need to search title to a property, find legal lot line surveys or register a home you transfer or purchase with local land titles offices.
We discharge existing mortgages and arrange signatures for mortgage insurance and mortgage documents with your bank or mortgage lender. We answer all your questions, like what is title insurance and more?
You receive a final statement of adjustments showing your costs to purchase the home and pay expenses like legal fees.
Book Appointments Online or By Phone Today
We have a cheap real estate lawyer near you who can video conference online anywhere you are in Ontario. You don’t have to leave home to talk to an Axess Law lawyer. Our secure online video call software makes doing business from the comfort of home or office simple.
Arrange in person appointments if you prefer to meet face to face. Axess Law locations near you in Ottawa or Greater Toronto Area have convenient day or evening appointments that fit your schedule.
Find Ontario Real Estate Lawyers
Access lawyers 7 days a week by dialing our 1-647-479-0118 lawyer line for a licensed real estate lawyer (Toronto, Greater Toronto Area or Ottawa). Toll free calls accepted at 1-877-402-4207.
Online bookings are quick and easy. It takes minutes of your time to make remote video calls or in person appointments.
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