Why Due Diligence Is More Critical on a Duplex
A single-family home due diligence checklist covers the physical property and the title. A duplex due diligence checklist covers all of that plus: the legal status of the second unit, the tenancy situation, the income history, the expense history, and the insurance coverage. Miss any of these and you may discover problems after conditions are removed — when it's too late to renegotiate or walk away without penalty.
Title Search: What Your Lawyer Is Looking For
Your real estate lawyer will conduct a title search as part of their closing work. For a duplex, specifically ask them to check: any easements or rights-of-way affecting the property, outstanding work orders or liens from the municipality, heritage designation (can restrict renovations), and any registered restrictions on use. Some older Ontario properties have deed covenants that restrict use — rare but important to flag before closing.
The 3 Things Most Buyers Skip
1. Utility bill history: Request 2 years of utility bills from the seller. This reveals the true operating costs and can expose issues (consistently high hydro bills = poor insulation or old appliances; high water bills = potential plumbing leak). 2. Permit history: Pull the full permit record from the municipality. Look for all work done and ensure permits were closed with a final inspection. An open permit means the work may not have been approved — this becomes your problem at closing. 3. Landlord and Tenant Board search: Search the LTB's online case search for the property address. Find out if any applications have been filed — by or against this landlord. Active applications transfer with the property.
The Rent Roll: Verify Before You Trust
The 'rent roll' is the landlord's statement of current rents. Verify it against actual signed leases and rent receipts. Look for: discrepancies between the stated rent and what the lease says, any informal agreements between landlord and tenant not in the lease, free rent periods or concessions, and whether first/last month deposits match what the tenant paid. A fraudulent rent roll is relatively rare but not unheard of — verify everything independently.
Condition Removal: The Point of No Return
In Ontario, removing conditions on an offer is the point of no return — once conditions are waived, you are bound to close. Do not remove conditions until you have: the inspection report reviewed and priced, financing formally approved (not just pre-approved), title search completed and clean, all leases and deposits verified, and your lawyer has reviewed all documents. If any of these are outstanding, extend your condition deadline rather than removing it early.