By Renee Ouellette

In real estate, there are many moving parts to a transaction: financing, inspections, negotiations, and legal documents. But one item that often gets overlooked until it becomes a problem is the certificate of location.

Recently, I worked with a lovely young family of four who were just days away from buying what they believed to be their forever home. After a few difficult years dealing with their son’s health challenges, this was a fresh start, a chance to finally settle into a home that checked all the boxes.

The stakes were already high for this family. They had sold their current home, and if this deal didn’t go through, they were going to have to move out with their two young kids (ages 7 and 9) and find somewhere temporary to live in between houses. Any parent can imagine the stress of that scenario, uprooting your family into the unknown while juggling work, school, and daily life. It would have been a nightmare.

We also knew going in that the certificate of location for this property dated back to 1970, over 50 years old. A new certificate had already been ordered, and we expected it would arrive in time for the signing at the notary. Thank goodness it did, because what it revealed nearly derailed the entire transaction.

The Problem: A Pool Out of Bounds

The original certificate didn’t reflect any of the changes that had been made to the property over the years, things like fencing, a shed, a pergola, and most significantly, the installation of a pool.

The new certificate of location was finally provided just days before the signing of the deed of sale. Low and behold, it indicated that the pool, added in 1975, was four feet too close to the property line, and did not conform to the set-back margins according to the municipal by-laws.

A difference of four feet might seem small, but in real estate, even a few inches can be a big deal. Encroachments and non-conforming structures can violate zoning by-laws, impact resale value, and may even require relocation or removal if they can’t be rectified.

When I went to the city to dig deeper, I found blueprints and a permit application, but no actual permit for the pool. Even back in 1975, the same setback rules were in place, meaning the pool didn’t conform back then, and it certainly doesn’t now.

Fortunately, when we made the offer on the home, I had included a clause to protect my buyers in the event of any non-conformities. That clause meant the situation could be rectified through title insurance if necessary.

But here’s the catch: while title insurance might cover the cost of removing a non-conforming pool, it would not cover the cost of installing a new, compliant one. And for my clients, having a pool for their young kids wasn’t just a nice-to-have, it was non-negotiable. The risk of losing the pool was a deal breaker.

Now, just two days away from closing, my clients were facing the possibility of not only losing their dream home but also being left without any home at all.

The Resolution

The acting notary advised us that the only way to resolve the issue would be to apply for a minor derogation from the municipality. This is the equivalent of a city-issued pardon or tolerance for the non-conformity. Unfortunately, it can often take weeks, or even months for a minor derogation to be granted, as they typically require a vote at city council meetings. In this case, we were scheduled to sign in only a couple of days!

Thankfully, the sellers were gracious and cooperative. Together, we negotiated a substantial holdback of funds at closing: a portion of the proceeds from the sale would remain in the notary’s trust account until the city ruled on the minor derogation. If the derogation is approved, the funds would be remitted back to the sellers. If denied, the funds would be given to the buyers in order to cover the cost of potentially having to relocate the pool.

It turned what could have been a nightmare for the buyers into a fair, amicable solution. But it was a stark reminder of just how critical that certificate of location really is. If the derogation is not approved, the sellers will take quite a hit. This all could have been avoided if the new certificate of location had been ordered well in advance, and the problem identified before the home even went up for sale.

While this story is centered around a pool, it’s far from the only problem that can be caused by not having an up-to-date certificate. A certificate of location is not just a piece of paper. It’s a legal document that shows the current state of your property, its boundaries, and whether the structures on it conform to municipal regulations.

• If you’re a seller, an outdated certificate can stall or even jeopardize your sale. Ordering a new one early can save weeks of stress and prevent last-minute surprises.

• If you’re a buyer, a new certificate protects you from inheriting unknown costly problems - like having to remove a pool, to rebuild a deck, or to relocate a shed.

If you’re thinking of selling your home, don’t wait until the last minute to check your certificate of location. Order a new one before listing your property, ideally as soon as you decide to sell. This gives you time to uncover and address any issues well before you’re under pressure from a buyer or a closing deadline. A little foresight can save you weeks of stress, costly negotiations, or even a failed deal.

If you or anyone you know is thinking of buying or selling, please don’t hesitate to reach out to Team Broady for sound advice and guidance. We can be reached at info@teambroady.ca, or by phone at 514-613-2988.