First-Time Home Buyer Incentive of the Government of Canada 

Are you thinking of buying and financing a first new or used residential property? Since September 2, 2019, a new program may help you reduce your mortgage payments without additional outlays for the down payment if you meet certain criteria ''this is the First-Time Home Buyer Incentive''. The Incentive’s value is 5% or 10% of the property value, depending on whether it is a new or used property.

Legal Warranty of Ownership and Quality

What is a ''legal warranty''? A person selling movable or immovable property must warrant that the property is free from any defect in title and any latent defects, except those declared before the sale. That is what is generally known as the ''legal warranty'', which has two components, i.e. the warranty of ownership and the warranty of quality. These warranties exist by operation of law, i.e. they do not have to be specified in the contract.

The warranty of ownership

The warranty of ownership assures the buyer that:

  • the property is free of all rights except those declared by the seller;

  • the seller has discharged the property of all hypothecs, except for those assumed by the buyer;

  • the property is not subject to any encroachment on the part of the seller or a third person; and that

  • the property does not violate any restrictions of public law, except those declared by the seller or those that the buyer should have discovered.

The warranty of quality

Under the warranty of quality, the seller warrants the buyer that the property is free from defects, existing at the time of the sale, that would render it unfit for the use for which it is intended or which would so diminish its usefulness that the buyer would not have bought it or paid so high a price if he had been aware of them. The seller is not bound, however, to warrant against defects known to the buyer or a defect that a prudent and diligent buyer could have perceived. This is why it is so important for a buyer to have a prospective purchase inspected by an expert. The fact that the seller is unaware of the defect, or that the defect does not become manifest until after the sale, in no way reduces the warranty. However, if the seller was aware of the defect, his liability would be increased to include, in addition to the reduction in value of the immovable, all other losses sustained by the buyer.

Inspection

Buying a property is one of the most important investment decisions you will make in your lifetime. As such, it makes sound financial sense to enliste the services of a qualified home inspection company to ensure your home is as solid and secure on the inside as it is on the outside.

 

A home inspection will determine the structural and mechanical soundness of your property. Your property inspector will identify existing and potential problem areas, suggest practical low-cost solutions, and provide estimates regarding costs for any work required. Shortly after the inspection has taken place, a report summarizing the findings is generally provided to the potential purchaser.