New Brunswick real estate investing

[Ahmad D.]

Hey folks, I've been looking into Moncton, NB (Canadian living in the US). I haven't done business here before, any notable differences for dealing with here versus the US, things on my mind in no particular order:

1) What are typical insurance providers that you work with ? This would be for > 4 units multifamily

2) How about title companies, is this usually done through title company or attorneys ? Do you have examples ?

3) I assume that contracts would typically have an inspection contingency

4) How much is the earnest money deposit compared to the purchase price ?

5) Any specific landlord-tenant laws I need to be aware of ? 

6) Have you invested here from out-of-province, what has been your experience ?

Feel free to mention any other information that you feel is relevant.

[Roy N.]

@Ahmad D. and @Larry Morehouse

1) If you have a residential residential property, then you want a Landlord specific insurance policy.  I would recommend you contact Nicole Morgan at A.P. Reid Insurance as part of your search.

2) Real estate transactions in NB (and Canada in general) are Closed by attorneys.  A title search is part of the process.   Title companies as you find in the U.S.A. do not exist.

3) Inspection and financing contingencies are standard in residential real estate contracts.  In commercial transactions the diligence is both broader and deeper.  Inspections will include not just a physical inspection of the property, but also engineering assessments; environmental assessments; zoning and permit inspections; leases and service contracts and finances (3-5 years, preferable prepared by an accountant).   

You should also have a condition permitting you to collect estoppels from the tenants and use the information collected to verify the leases and financial information reported by the Vendor.

4) When it comes to Earnest Money (more commonly called simply a Deposit here), you should consider a minimum of 5% - 10%.   I know that $1K - $2K deposits seem to have become common on residential properties, but if you were to drop such a deposit on an apartment building, neither you nor your agent (who allowed you to do it) are going to be taken seriously.

5) Absolutely!  You need to be aware of the Residential Tenancies Act in the jurisdiction in which you are acquiring property.  The NB Residential Tenancies Act can be found here.  Just as important as the Act itself is learning how the Residential Tenancies Tribunal (RTT) {formerly the Office of the Rentalsman} applies the law and the regulations which accompany the law.   Good news for you, NB has a fairly balanced Landlord - Tenant regulatory environment; particularly in comparison to jurisdictions such as Nova Scotia, Québec or Ontario.