Immigrants to Canada are keen on buying houses locally in Canada, but some immigrants prefer to buy land and build houses themselves. In most areas, there are two possibilities for building: one is to buy a vacant lot to build a house, and the other, more common, is to buy an old house, demolish it, and rebuild. Regardless of which option is chosen, it is important to avoid significant issues that could lead to financial losses. So, what should one pay attention to when buying land and building a house in Canada? Let’s take a look at several common issues.
Underground Oil Tanks
In North America during the 1950s, the popular heating method was oil heating, which has since been gradually replaced by electric and gas heating. However, many old houses still have oil tanks that have not been dealt with, some are on the ground, while others are buried underground. Over time, many of the buried oil tanks have begun to corrode, leaking oil and contaminating the soil and groundwater. Therefore, whether for investment or personal residence, if an old oil tank is discovered, it must be removed. However, removal incurs costs, especially for tanks that have already caused contamination, which not only require removal but also payment for cleaning the contaminated soil. In Vancouver, a homeowner spent $80,000 to clean up an old oil tank in order to sell their old house.
When selecting land, prospective owners must be careful to avoid old houses with oil tanks. If it cannot be avoided, the purchase contract should stipulate that the costs of tank removal must be borne by the original owner. Some owners may conceal the existence of underground oil tanks, or they may not even be aware of them, so it is advisable for prospective owners to hire professional oil tank detection personnel to inspect the property before purchasing.
Asbestos in Old Houses
Asbestos has excellent insulation properties but is toxic and carcinogenic. Before the government banned the sale of asbestos products in 1990, approximately 300,000 to 400,000 homes across Canada used asbestos as attic insulation. The removal of these old houses filled with asbestos can lead to serious contamination and high waste disposal costs.
Demolishing an asbestos house is very time-consuming and labor-intensive, requiring prior notification to government departments before construction can begin. Before construction, the entire building must be wrapped in tarps for site negative pressure treatment, workers must wear special protective clothing, use specialized garbage bags, and hire a dedicated waste disposal truck at a cost of $4,000 per truckload. The cost of demolishing a house can exceed that of a typical house by $8,000 to $10,000, and the process may take a week. Houses built from the 1950s to the 1990s generally contain asbestos materials, with varying amounts.
Lack of Water Supply and Drainage Facilities
Some Chinese friends particularly yearn for the idyllic scene of "picking chrysanthemums under the eastern fence, leisurely seeing the southern mountains" and prefer to buy land in relatively remote areas to build houses, sometimes even purchasing agricultural land that can be developed for housing. However, they may discover that these lands lack the necessary water supply and drainage facilities when it comes time to build. This issue can also exist in less remote areas. For example, many places east of No. 4 Road in Richmond do not have a public sewage system. To address these issues, some prospective owners hire people to drill wells for water, while others build their own sewage systems. Generally, a family of three needs at least $30,000 to build their own sewage system.
Neighbors' Opinions
In many areas, when building a house, relevant departments may consult neighbors about the planning of the new house, and even hold public hearings. The requirements of neighbors vary by location. In historical and upscale neighborhoods, neighbors tend to have more demands. Some neighborhoods not only require the architectural style to be consistent with the surroundings, but also the color of the house to match that of the neighbors. In certain upscale neighborhoods, the process of demolishing an old house and building a new one may take as long as five years.
Right of Way
In some plots, although you own the property, the government or utility companies have the right to conduct construction around or even within the plot, such as laying pipelines and cables, which can cause serious disruptions to the owner's life and damage the vegetation and facilities on the plot. Before purchasing land, one can spend a small amount of money at the land registry to conduct a Title Search to determine if this issue exists. In fact, a Title Search can reveal not only Right of Way issues but is also essential homework before buying a house or land. Through a Title Search, individuals can find out if a property or plot has any restrictions, outstanding loans, etc. Builders need to understand the precautions for buying land and building houses locally and prepare for risks in advance; otherwise, starting construction without proper preparation may lead to unnecessary losses.
