Just as you commission a home survey to check the physical “soundness” of the home you plan to purchase, you should seek qualified legal counsel to determine the soundness of “legal foundation” of the house. A real estate purchase is a legal transaction that lays a foundation for everything that follows. Always engage competent counsel to represent you in the transaction.

Marko Maryniak, a local Fernie lawyer who owns the firm Rockies Law Corporation, believes the process starts with a little homework. “Doing your due diligence is probably the most important aspect of any real estate transaction,” says Maryniak. “Don’t just focus on the price - make sure that you are comfortable with all the terms of the contract. Have your legal counsel review it as well.”

Maryniak adds it’s important for the seller’s agent to provide you and your chosen counsel with a current title search, a property disclosure statement, and copies of all encumbrances, covenants, strata bylaws, management agreements and any other agreements associated with the property. These documents contain critical information pertaining to any real estate transaction.

When purchasing a condominium, Maryniak advises clients to review and fully understand the strata bylaws governing everything from pet policies, to parking, to strata fees. Considering a timeshare? The agreements can be even more complex. Any questions? Ask your counsel.

In the same way an attorney takes the role of a legal home inspector, an accountant takes the role of the handy man. Your accountant keeps everything opening, closing and from financially breaking down. A good accountant will save you money in the operation of your home in Fernie.

When it comes to accounting, Chartered Accountant Gerald Price stresses how an owner plans to use the property is the single most defining factor when it comes to accounting implications.

“Generally, if you’re going to use the property as your full time residence, there are very few accounting or tax implications,” says Price. However, if you are going to use the property primarily for rental, you will need to file a rental schedule on your tax return. While long-term rentals only require this schedule, short term rentals carry GST implications.

In selling a property, an accountant’s work will be critical. Remember, all property besides a primary residence carries capital gains implications – meaning owners in all other categories will pay capital gains tax on the disposition of the property during a sale.

Finally, Maryniak suggests that clients think beyond the immediate when it comes to their property. Real estate in Fernie may be a legacy to be handed down to children or grandchildren. Therefore, proper estate, tax and succession planning should be a part of your purchase strategy from the beginning.