What Should the Contract Cover?
The contract will describe the lot, the model, the selected upgrades and other obvious items such as the price and financing terms. In addition, it should include information on restrictions and obligations that may affect your rights and responsibilities as a home owner, such as:
- Rights of way or easements registered against the lot. For instance, will there be a fire hydrant on your lot, or an electrical box?
- Subdivision requirements. For instance, there may be restrictions on the number or kinds of trees that you may plant. Or restrictions on parking commercial vehicles, trailers and boats or performing general automotive maintenance in the driveway. Or on installing a satellite dish.
- Municipal bylaws that regulate activity in the neighbourhood. For instance, are there any restrictions on nanny or in-law suites, home businesses or storage buildings?
All of the above should be covered in "Schedules" which form part of the Agreement of Purchase and Sale.