After an accepted offer and before subject removal, the core task of this stage is to identify risks as thoroughly as possible and confirm whether the project is “doable and worth doing.” The following are the key items that must be checked systematically:
1. Land Title (the most critical)
Pull and read it carefully at the first opportunity. Focus on:
- Owner information — Does it match the seller? Is there a trust or corporate structure?
- Charges / Encumbrances:
- Mortgage → normal
- Easement → affects where you can build
- Right-of-way → restricts use
- Restrictive Covenant → extremely important
- Common covenant risks:
- Restrictions on building size / height
- Restriction to single-family only
- An explicit “no more than 2 units” (directly affects a 1→4)
- Architectural style / material restrictions
Land Title determines “whether you can legally do it” — the first priority.
2. Property Disclosure Statement (PDS)
The seller’s disclosure document. Look closely at:
- Any flooding, leaks, or mould
- Any structural problems
- Any undeclared construction / illegal alterations
- Any boundary dispute
Note:
- A PDS is not always fully reliable
- But once an issue has been disclosed, it is very hard to pursue recourse later
3. Survey / Location Certificate
If the seller provides one, look closely at:
- Whether the house encroaches on a setback
- Whether there is any structural encroachment over a line
- Whether there are unregistered structures (e.g. additions)
If none is provided, you can commission your own (often this can be done after subject removal, since a long timeline can sometimes weaken the seller’s acceptance of the offer). Land survey is discussed in detail below.
4. Home Inspection
The purpose of inspection is to surface problems early, manage risk, and support price negotiation.
4.1 Five core points to check
- Foundation / structure — cracks or settlement (a key concern in Richmond)
- Roof — aging, leaks
- Plumbing — leaks; is it Poly-B?
- Electrical — outdated (aluminum wiring / fuse box)
- Exterior walls / water ingress — water penetration, mould risk
4.2 When an inspection is a must
- Buying an older home
- Undertaking a development project (1→3 / 1→4)
- When the home’s condition is unclear
4.3 Value
- Supports price negotiation
- Helps decide whether the purchase is worthwhile
- Helps estimate later renovation costs
