If you're thinking about buying a recreational or waterfront home, but have never bought one before, you've come to the right place. There are some important differences between urban real estate and cottage country properties. Here are a few things to consider:

Choosing a REALTOR

A good first step is to get to know your REALTOR. Come and meet us in person. We're trained professionals with skills to help guide you through your purchase. In Ontario, real estate professionals must undergo several months of study and examinations, and a two-year articling period before they become full-fledged licensees. Continuing professional education is mandatory for all real estate practitioners, and many REALTORS choose to further their skills by obtaining specialized training in areas such as law, property appraisal, or mortgage financing.

Choose a REALTOR that you're comfortable working with; finding the perfect cottage can take a while! Once you've established a relationship with a real estate professional, stick with him or her. Remember that your REALTOR can show you properties listed with any company; they're not limited -- nor are they encouraged -- to show only listings belonging to their own company.

Your REALTOR may ask you to read and sign a Buyer Agency Agreement. This is simply an agreement which states that you will work exclusively with that salesperson for a period of time, during which the salesperson is obliged to promote and protect your interests exclusively in any negotiations or dealings. Remember: it is in your best interest to have a REALTOR working for you under a Buyer Agency Agreement, and since real estate fees are typically paid by the seller, this representation usually costs you nothing. Your REALTOR can give you a brochure detailing the various types of agency arrangements, and will be happy to answer any questions you may have.

What Are You Looking For?

Are you looking for a large country house on a big lake with great boating? Or would you prefer a private, peaceful retreat surrounded by nothing but nature? Cottage country properties vary as widely as city properties -- perhaps even more. You can find everything from a basic rustic cabin in the woods to an elegant, fully-appointed waterfront home. In the Haliburton Highlands, you can expect properties on bigger lakes to be priced somewhat higher than those on smaller lakes.

The most important things to consider when choosing your new cottage are the lot and location. For example, if you would prefer to be within a 20-minute drive from a grocery store, ask your REALTOR to keep that in mind when searching for listings. Perhaps you would like your new cottage to be surrounded by nature - lots of trees, rugged rock outcroppings, and wildlife.

Remember that the building itself is of secondary importance. Buildings can be changed, repaired, renovated, and rebuilt -- but the location and setting can't be changed. In fact, with most waterfront properties, the building is worth only a small fraction of the property's value; the waterfront land represents most of the price.

Finding the perfect cottage will be a highly personal adventure because everyone has different tastes. Your REALTOR will assess your needs and wants, and select appropriate properties for your viewing tour. You'll know the right cottage when you see it!

Financing

You should talk to your banker in order to determine your financing goals and guidelines before you begin shopping. Getting pre-approval from your bank will make your cottage purchase go much more smoothly. Be aware that some banks may not be willing to offer a conventional or CMHC mortgage on recreational properties, and a general rule of thumb is that you will need anywhere from 10% - 25% of the purchase price as a minimum downpayment. Some people prefer to finance their cottage against their principal residence in order to obtain a more favourable rate.

As with any loan, it's a good idea to talk to several banks in order to obtain the best terms. As well, we can refer you to mortgage brokers in the area who specialize in obtaining financing on recreational properties.

Waste and Water

If you've never owned a rural home, you've probably never thought much about where your water comes from -- or where it goes! These become important considerations when shopping for a cottage.

Since most cottages are many miles from municipal water mains, they need their own water source. Drilled or dug wells are very common, and waterfront property owners also have the option of pumping their water from the lake. A water pump is required to provide water pressure to the house, and if water supply pipes are exposed they must be heated in the winter to prevent them from freezing. We can refer you to plumbing specialists who can give you more information on winterizing your water system.

The old outhouse still exists in more rustic settings, but in most cases, cottage owners now have modern sewage disposal systems that will allow the use of all modern conveniences that you are used to at home. These systems may include: septic tank/tile bed systems; holding tanks which must be pumped out periodically; leaching beds for grey water; and composting toilets. Make sure you check to see what type of sewage disposal system your future cottage has, and also ensure that all required approvals were obtained or are available for inspection.

Accessibility

While there is the occasional island or water-access-only property, most Haliburton-area cottages have some form of road access. Road access comes in three flavours: municipal year-round roads are ploughed and maintained throughout the winter by the local government, paid for by property taxes; ploughing and maintenance of private year-round roads is paid for by the individuals or groups who use them. Finally, seasonal roads are usually passable in the late spring, summer and fall only.

Cottagers who want the ultimate privacy sometimes choose water-access properties for their seclusion and quiet simplicity. These hardy types drive to a nearby boat launch or marina and boat to their getaways in the warmer months -- and the truly dedicated will snowmobile across the frozen lake in winter.

Completing Your Purchase

You will need the services of a lawyer in order to complete the purchase of your cottage. Your lawyer will: search the title to the property to ensure that it is free and clear from any encumbrances; deal with any access issues such as rights of way; complete a wide range of searches to ensure that there are no outstanding work orders; and register a new mortgage if necessary.

In addition to legal fees (which depending upon the complexity of the purchase may range from $750 to $3000) you will incur other fees such as Land Transfer Tax ($5 per thousand of purchase price on the first $55,000 of value; $10 per thousand from $55,000 to $250,000; and $15 per thousand for the value above $250,000), as well as title insurance and mortgage insurance fees. In addition, there will be minor adjustments with the seller on closing, to apportion property taxes and fuel costs.

Also be sure to contact the local utility companies to arrange to have service commence in your name on the completion date.

We can provide you with contact information for lawyers in the area and can provide you with more detailed information on any of the above issues.

Other Considerations

A peculiarity of waterfront properties is the shoreline road allowance. On most lakes, this refers to the first 66 feet of land running along the shoreline. In the past, this strip was reserved to provide for the establishment of roads and/or public access along navigable waterways. In most cases, this strip technically remains public land; however, these shoreline road allowances are no longer used for roadways or public access. Some landowners choose to go through the legal process of purchasing this land from the local municipality, for a nominal cost. When buying a waterfront property, we can advise you whether the shoreline is "closed" (owned) or "open" (not owned). If you choose to pursue purchasing your shoreline road allowance, your lawyer can advise you on how to proceed.

Environmental responsibility is becoming an increasingly important part of cottaging. Consequently, local and provincial governments have strict rules about development designed to protect the environment. New cottage developments often have "restrictive covenants" in place to ensure that cottagers do not harm habitats and ecosystems. You'll need to check with the local municipality before beginning any construction -- especially near delicate shorelines.

Final Word

Don't be discouraged by the peculiarities of purchasing a cottage; in fact, they are just a part of the flavour of cottage living. We will be happy to answer any questions you may have, and refer you to the proper local authorities and tradespeople when applicable.

Happy cottage hunting!