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Cottage Life

5 (potentially) confusing cottage real estate terms

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“In my business, familiarizing buyers with what they need to know involves some new terminology,” says Chris Winney, a broker with Royal LePage ProAlliance Realty in Northbrook, Ont. Here are a few potentially confusing terms for cottage buyers.

Road access Wait, how is that confusing? There’s “road access” and “water access.” Simple! But this term can require some explanation “if part of the way into the cottage takes you from a township-maintained road to resident-maintained lanes that may criss-cross neighbouring properties,” says Winney. “That’s when using a local lawyer is beneficial; they know the area well and understand how the buyer may or may not be impacted by this situation.”

Cottage Q&A: If neighbours access their dock via our property, are we liable if they get hurt on our land?

Road maintenance fees “It’s important for buyers to understand that when they purchase a cottage that uses resident-maintained lanes for access, they need to accept that there will be an extra annual shared fee,” says Winney. Everyone who uses the road helps pay for the road: for maintenance—grading and dust control if it’s gravel, for example—insurance, and potentially snow plowing. (Even if you don’t use the cottage in the winter, your cottage association or road association may expect you to pay for winter maintenance.)

Cottage Q&A: How can we ensure everyone pays their share of road maintenance fees?

Crown land Any land, lakes, and rivers managed by the government. Is there any Crown land near the lake? “Having it facing or around your property is beneficial,” says Winney. “It’s a constant view, it probably means the lake is clean, and it provides everyone with privacy.” Not to mention trees. Everyone loves trees!

A guide to buying and building on Crown land in Ontario

Public access points This could affect how much boat traffic the lake gets. “Are there public access points on your lake or is it a closed system? On larger lakes, both residents and visitors can often put their boats in at different boat launches,” says Winney. On smaller lakes, you may need to own property to be able to boat there.

Lake level Well, duh: it’s the level of the lake! But you’ll want to investigate what controls it, and therefore, what can affect it throughout the year. “Is it spring-fed? Is it part of a river chain controlled by dams? Does the water level fluctuate to allow you to keep your dock in place in the winter?” says Winney. “Knowing this happens will reassure a buyer when the water drops at the end of October by five to six feet. Yikes if they didn’t know!”

15 real estate terms for first-time buyers

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Cottage Life

Cottage Q&A: What does selling “as is” mean?

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My wife and I are looking to buy a cottage. The owners are selling it “as is.” Is this common? And is buying a cottage that’s being sold “as is” a good idea?—Bewildered Buyer

It’s not uncommon. Selling “as is” usually means: what you see is what you’re buying. The owners aren’t prepared to fix any problems discovered during an inspection. But there are different reasons for this language—it’s not always code for reno nightmare. “The term ‘as is’ can be a little ambiguous,” says Judy Forster of Forster Realty in Regina Beach, Sask. It’s typical in an estate sale or in a situation where the bank has foreclosed on a cottage. After all, “if the owners aren’t around, you can’t ask them to fix anything,” says Chris Winney, a broker with Royal LePage ProAlliance Realty in Northbrook, Ont.

15 real estate terms for first-time buyers

Other possibilities: the sellers don’t have the cash to deal with the fixes that the cottage needs, or they suddenly inherited the cottage and have no interest in tackling any renos. Or “as is” may have nothing to do with the condition, says Wayne William Heine, with EdmontonLakeProperty.com in Spruce Grove, Alta. These owners could be using the term to indicate that they want to sell the contents of the cottage too. “Some people say, ‘Hey, I just want to take my personal belongings and walk out of here.’ For buyers, that might be a good thing.” Especially if the owners leave behind a valuable comic book collection or bottles of 70-year-old malt whisky! (What? It could happen.)

A real estate agent’s tips for buying a cottage sight unseen

Still—and this goes for buying any cottage, in any condition—as a buyer, you have to do your due diligence. Get all the necessary inspections—duh—but also gather as much intel about the lot, the area, the lake, and the local politics as you can. Winney’s tips include reading at least three issues of the regional newspaper, visiting the property at different times of the day, and talking to the neighbours. “Almost anything that’s wrong with the cottage is fixable, but the environmental factors aren’t,” she says. “And if someone is putting pressure on you to make a decision, walk away. There are other properties out there.”

Got a question for Cottage Q&A? Send it to answers@cottagelife.com.

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Cottage Life

Cottage Q&A: Should we disclose that we’re renting out the cottage?

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We’re no longer using our cottage as frequently as we used to, but we aren’t ready to sell. We want to start renting it out. Should we tell our neighbours that this is our plan?—Torrie Samson, via email

Yes. A million times, yes. Reverse the situation: “Would you want to be advised?” asks Suzanne Nourse, an etiquette consultant with the Protocol School of Ottawa. “Well, then, there’s your answer.”

We certainly understand why you’re asking. Renters get blamed for all kinds of lakeside sins: playing loud music, partying late, drinking too much, setting off fireworks, attracting bears, owning poorly trained dogs, parenting children who shriek all of the time while swimming…You’re probably dreading a tense and uncomfortable conversation. But telling them “is 100 per cent the polite thing to do,” says J.T. Lowes with All-Season Cottage Rentals in Haliburton, Ont. “We encourage all of our owners to let their neighbours know that they are renting.”

That said, you’re best not to open the door to a discussion by making it seem as if you’re asking their permission (“Would you be okay if…”). Instead, say something like, “ ‘Just giving you a heads-up, the cottage is being rented for the first two weeks of July,’ ” says Nourse. If the neighbours respond that they’re not comfortable with that plan, “I would bite my tongue from saying, ‘Well, that’s not up to you,’ ” says Nourse. “And ask them, ‘Is there anything in particular that you’re concerned about?’ Ask them to be specific, but don’t be confrontational.”

Assure your neighbours that you’ll be vetting the renters and that you’ll have clear rules in place about noise, music, pets, water safety, etc. (Because you will, right?) 

“And let them know that they can alert you when someone is not following those rules, or if they feel that things are getting out of hand,” suggests Jay Simpson, the owner of A Shuswap Holiday in Lee Creek, B.C. One snag: this could backfire if something does go wrong, and the neighbours call expecting an immediate response—not realistic if you live far away. 

In that case, “it’s best to have someone local involved—for example, a property management company,” says Simpson. “That way, if there’s a problem at any time, the neighbours can call someone to go over and have a talk with the renters if need be.” (Bonus? It would also give the renters someone local to call: “We don’t know what’s wrong, but now the toilet just won’t flush!”) 

Good luck, and happy renting.

Got a question for Cottage Q&A? Send it to answers@cottagelife.com.

This article was originally published in the May 2022 issue of Cottage Life magazine.

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Cottage Life

Cottage Q&A: Spring 2022 cottage real estate prices

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What will 2022 look like in terms of Ontario cottage prices? —Todd R. Mcrae, Toronto

We assume that you’ve already consulted the Psychic Hotline, with dismal results. “Let me first shine off my crystal ball,” says Shawn Woof, the senior vice-president of sales and a sales representative with Sotheby’s International Realty Canada in Port Carling, Ont. What does he see? The trend that began once the pandemic ramped up is set to continue: a high demand coupled with a low inventory means that “it’s likely going to be a seller’s market,” says Woof. 

“With the arrival of COVID-19, cottage country hit the radar of people looking to get out of Dodge,” says Chris Winney, a realtor with Royal LePage Realty in Northbrook, Ont. “Suddenly, a property listed on the high side of normal was likely to be involved in a bidding war and might sell for 250K over asking.”

What with the multiple waves of COVID that followed (was it four waves? 17 waves?), even now, “people are still less likely to sell,” says Woof. “Every case is different, but it appears that those who are holding on to the cottage far outweigh those who are cashing out.” 

If you’re asking because you want to sell your place soon, high five! You can expect to get more than the listing price (within reason). But if you’re a prospective cottager hoping to buy this year, “you’ll have to be open to broadening the scope of what you’re looking for,” says Woof. You’re not going to find any deals, and you’ll need to treat the listing price as the starting price.

Still, you can’t win if you don’t try. Start the search early in the spring, says Winney. “Have your financing arranged before you begin, use a local realtor, and bring along a structural expert when you go to a showing.”

Cottage prices aren’t likely to drop any time soon. But they’re also not likely to skyrocket to infinity. Winney predicts that demand will become more moderate eventually. “So the ‘new normal’ will still be high prices, but they will plateau.”

This article originally ran in the March/April 2022 issue of Cottage Life magazine.

Got a question for Cottage Q&A? Send it to answers@cottagelife.com.