Today has been cancelled.

Not too long ago, buying a home was a relatively simple matter.  You put in an offer, came up with the money, and let your lawyer register the transfer of title. But things have since become somewhat complicated. Today has been cancelled – and tomorrow is already here.

The “one line” offer has increasingly given way to a host of “what if” clauses. Banks have started to require this, that, and the other before approving your mortgage.  GST charges, land transfer tax, and the fees required by the likes of the Land Titles people have tripled erstwhile closing costs. The expense of a Home Inspection has become all but de rigeur. And now … the insurance industry has begun to revise its underwriting rules.

The explanation lies in the impact of 9/11.  It’s been said that the claims covering the loss of the Twin Towers totalled one hundred and eighty eight billion dollars! Consequently, there’s a need to eventually balance the books – and a trickle down effect on premiums and risk assessment is now becoming apparent.
Thus, you could have difficulties if your home dates back to the 60s or before.  For example, a 60 amp hydro service, knob and tube wiring, and an oil furnace that’s no longer in use could all mean no insurance or premiums adjusted decidedly upwards.
If you’re buying rented property, you could also find your insurance company less inclined – if at all – to issue a policy.
And heaven forbid that, knowingly or not, you’ve picked up a Grow House – which is now insurable by almost no one!

In any case, it does make sense to get in touch with your insurance agent as soon as possible after an offer’s accepted, just as you'd contact your bank and lawyer without delay.  Give him/her – and of course yourself – time to deal with any problems long before they become insurmountable.
This isn’t, I assure you, a witch’s warning.  It merely reflects my thoughts as an Exclusive Buyer Broker (which means I no longer list property but work solely for buyers). My concern is, as it were, on the needs of tomorrow instead of the habits of what used to be.  But I’d rather suggest that today is cancelled than have you find out that your policy has been!

If you'd care to call and discuss any of these points with me, I'll be only too pleased to hear from you.
Thank you for your time.

Duncan Pollock, Real Estate Broker,
427 Gate Street, Niagara-on-the-Lake, Ontario, Canada L0S 1J0
Tel: 905-468-3154 Fax: 905-468-3812 Cellular: 905-704-9037
email: duncanpollock@sympatico.ca
Note: E-mail addressed changed as above on Nov 3 2007
website: http://www.duncanpollock.com