A house or condo purchase requires many legal and technical documents.
The certificate of location is regularly included as part of all the necessary paperwork. But this document can be difficult to understand for first-time buyers… and with good reason!
Prepared by a land surveyor who visits the site, it contains a technical analysis report describing the present state of the property. It also comprises a detailed plan showing the lot’s boundaries, buildings, easements, encroachments, and applicable restrictions.
In general terms, this document is used to verify that the property complies with current laws and regulations.
Why Is It So Important for a Real Estate Transaction?
According to Me Audrey Aubin-Brushey, notary, and Me Marika Di Domenico, lawyer, the certificate of location is essential for several reasons, such as ascertaining:
- The property’s boundaries: It confirms that the house or condo adheres to the municipality’s lot dimension and setback regulations.
- Easements: It identifies rights of way, public utility lines (water pipes, electricity, etc.) or other easements affecting the property.
- Encroachments: It indicates whether part of the property encroaches on a neighbouring lot or vice versa.
Conformity with municipal and zoning bylaws: It helps to avoid purchasing a property with non-compliant structures that could lead to costs and complications.
The notary will confirm whether the certificate of location accurately reflects the property’s condition as described by the seller.
When Is a Certificate of Location Necessary?
- When the owner sells the property. In fact, the seller must provide the notary with a recent certificate of location (less than 10 years old) for the transaction to go ahead. * If the existing certificate of location is too old or no longer corresponds to the lot and building’s current state (even if the document may only be two years old), the seller must have a new one drawn up.
- When the owner refinances their mortgage. Banks require the document to check, among other things, whether the property has increased or decreased in value since the mortgage was signed.
- When the owner alters the property (extensions, new fence, etc.). “Actually, if you, as the owner, wish to make changes to your property or lot, you must check municipal bylaws to ensure that these modifications are in line with zoning regulations,” reminds Me Di Domenico.
Who Pays for the Certificate of Location?
Generally, it’s the house’s seller who bears the cost of a new certificate of location if the old one is obsolete or no longer accurately reflects the state of the property.
However, in some cases, the buyer and seller can work out a different arrangement as part of the negotiations.
How Much Does It Cost?
A certificate of location’s cost varies based on the region and the complexity of the terrain, but it tends to range between $1,000 and $2,000.
Our Tip
Get two or three quotes before choosing a land surveyor.
How Long Does It Take to Obtain a Certificate of Location?
The average turnaround time is approximately 4 to 6 weeks, but this may vary depending on the surveyor’s workload and the complexity of the case.
What Types of Problems Might the Process Reveal?
- Encroachments such as fences, hedges, low walls, etc., that extend onto the neighbouring lot or vice versa.
- A public right of way spanning part of your lot.
- A shed erected too close to the fence.
- A swimming pool that isn’t fenced in accordance with regulations.
- A swimming pool that is located beneath power lines.
- A second floor above the garage, even though municipal regulations prohibit this.
- Etc.
What to Do if There’s a Problem?
If the certificate of location reveals one or more issues with the property that could discourage you from purchasing it, you have a few options:
- Negotiate new purchase conditions with the seller.
- Rectify the irregularity by obtaining a municipal permit or by carrying out the necessary modifications.
