When residential and rural Buyers start their home search, it is often too easy to only look at the positives: a nice size and age of home; a nice size of land; great scenery; convenient location; all within an affordable price. In a perfect world, this would be enough but unfortunately it is all the negative factors that can prove catastrophic.
As a REALTOR® with a very unique background in civil and construction engineering combined with selling properties in diverse locations across the Province of Alberta, in this article I describe some of the major risks that Buyers might encounter along with potential mitigate strategies that can be utilized to safeguard your purchase:
(1). Flooding Risks:
Buying a home near streams and rivers can seem tranquil and provide spectacular views. Buyers too rarely consider what would happen if suddenly the body of water swells causing torrents (and backfill) in areas that no one other than nature had intended. Below are several important topographical risks Buyers must navigate:
(a). Is the property backing onto or otherwise situated very close to an existing river; creek; lake; etc.? [Alberta example: The Town of Canmore which experienced many residences negatively affected in the 2013 flooding of Cougar Creek, which was an unusual event combining mountain spring runoff with relentless unseasonal rains].
(b). Is the property located in a neighbourhood floodplain / floodway in danger of a 1 in 50 year or some other frequency flood? [Example area floodplains / floodways in City of Edmonton by the North Saskatchewan River: Rossdale; Riverdale; Cloverdale; and The Quarry; and Rocky Mountain Bow Valley area floodplains: Harvie Heights; low elevation areas of Canmore; Dead Man’s Flats; Exshaw; and Lac Des Arcs, etc.]
(c). If buying on a mountainside or hillside, is the property located in an alluvial fan and if so, does the Municipality have a robust program in place to ensure culverts are adequately designed and maintained? [Alluvial fans are large build-ups of sediment coming down the side of the mountain or hill in which even if areas are dry, indicates the ‘escape route’ that water would suddenly take down the hillside or mountainside if the current existing creeks or river outlets were suddenly closed off or overflowing.]
[Alberta example: The Town of Canmore’s 2013 flooding of Cougar Creek had a large backup of water near the Trans-Canada Highway that caused moderate property damage, however (unbeknown to most) nearly missed a gigantic tragedy because upstream of the blockage at a higher elevation, mounting debris created a second chokepoint and had water been unable to pass, it would have escaped down the sides of Mount Lady MacDonald (and Grotto Mountain) along the alluvial fan which would have certainly resulted in massive property damage and loss of life. As a result of this huge near miss in 2013 that in the end was a manageable disaster, the Town of Canmore acted reactively and hired additional engineering firms to improve the culvert system and guard against debris pileup. It is suggested that Municipalities go further in residential development areas with an alluvial fan: in addition to bolstering existing creeks and culverts, other dry bed creeks should be created such that in the event of catastrophic failure of the main waterway, additional outlets allow water to safely escape without creating personal and property damage chaos for residents. Also: Municipalities must not allow new residential development on alluvial fans without first requiring developers to install properly robust waterways and culverts!]
(d). Due diligence question Buyers should ask their insurance company: given the property’s geographic location, is it insurable and at what annual cost?
Note: in 2013, the Province of Alberta provided some financial assistance to affected property owners without proper insurance in exchange for placing a registration on title disclosing provision of this assistance – this is a highly improper course of action:
(i). Taxpayers should not be forced to spend hard earned money bailing out foolish buying decisions of individual property owners who did not exercise due diligence.
(ii). While title review is important for other reasons, it must not be relied upon in any capacity for navigating forestry; geotechnical; or flooding risks unless 100% of the properties in the Province of Alberta are handled by the same standard (i.e. not just a few owners who happened to receive assistance from a flood event while the other 99%+ of potential future flood events have not occurred yet with no title registration), noting Government title registrations must be done only when absolutely necessary and within strict limits otherwise the registrations can violate private property rights.
(iii). Permanent title registrations do not take into future account mitigation measures by Municipalities (e.g. Town of Canmore – Cougar Creek) that can have adequately mitigated risk and alleviated the need of random title disclosures for past events.
(iv). Buyers must be required to exercise due diligence when buying and know that being bailed out by taxpayers for bad decisions made is not an appropriate solution.
(v). Buyers must navigate the risks involved to get a property fully insured (including catastrophic events such as flooding, etc.) before removing conditions and before getting final approval for bank financing on a mortgage or else not close a purchase.
(vi). Governments must proactively identify areas that are prone to flooding and not allow development permits to be issued unless appropriate mitigation measures are taken in advance to handle the risks; and to warn new purchasers of the risks. In this regard, a ‘Government registration on title warning of flood plain location’ could be appropriate provided it applies to all properties in the flood plain, and not just a few.
(vii). Builders / developers are strongly encouraged to perform proactive hydrology, geotechnical, environmental, and forestry due diligence at the time of purchasing land parcels to ensure they are not developing areas and building new structures that provide a lifetime of angst; fear; risk; and heartache for their future customers. The reality: danger areas should be used for things other than residential housing.
To properly identify, understand, and mitigate the flooding risks above, affected Buyers are encouraged to:
(i). Place offer to purchase condition: ‘Subject to Satisfactory Hydrology Engineering’;
(ii). Working closely with your Buyer REALTOR® and inspector, check out Government Websites for general information on flooding including flood hazard maps (e.g. the following website is used in the Province of Alberta: https://floods.alberta.ca); and
(iii). Prior to removing your condition, engage the services of a quality hydrology engineering firm to perform detailed review / analyses of the property and area.
(2). Geotechnical and Environmental Risks:
When buying property, while mineral rights may or may not be included in your real estate purchase, composition of the soil beneath is of critical importance. Below is a list of geotechnical risks that home Buyers must understand, navigate, and allow for:
(a). What is the type of soil and is it suitable for buildings? Note depending on the soil, it may need to be removed and replaced or compacted; etc. with added cost. [Note: for descriptions of the best types of soils to use for building structures, see reference: https://uretek-gulfcoast.com/types-soil-for-building-foundation-dirt/ ].
(b). What is the current moisture content and how much will it swell with heavy rains?
(c). What is the slope capacity and is the ground in danger of ‘sloughing’? Note in areas prone to mudslides, flooding, or earthquakes slope capacity is a huge factor.
(d). What is the history of the land – has anything been built there in the past (e.g. is there a covered foundation or garbage / toxic landfill hidden by the topsoil?)
(e). Are there any environmental concerns (e.g. oil tank leaks from the past or other dangerous contaminated soil) that must first be remediated before building? Note that highly contaminated soil, all depending, can be very expensive to remediate.
* Note: Buyer due diligence options for identifying environmental concerns and their mitigation strategies includes hiring an Environmental Engineering firm to conduct Environmental Phase I (and if necessary, Phase II and Phase III) assessment reports.
(f). For existing structures, what are the current soil pressure gradients applied to the foundation perimeter, and are there any differentials that require specialized design and construction? (e.g. building on slopes or building walkout basements, etc.)
For further details, review my reference Buyer Article: “Important Cautions of Buying a Home with a Walkout Basement”.
(g). Is there any history of coal mines or other sink holes in the area? While mining companies may be required to fill in tunnels, not doing so means there are air pockets beneath the ground – as old mine bracing gets damaged or rots away over decades, combined with increased pressures of roadways, housing, and other buildings above, the bracing may suddenly give away causing the tunnel to collapse along with everything directly or adjacent above it. Sink holes can be caused by a number of factors including underground streams or caves which, unlike coalmines, have no structural bracing at all. [Alberta coalmine example: on the Southwest (i.e. Three Sisters) side of Highway 1 in Town of Canmore, there is a history of coalmine tunnels including some that collapsed causing private and public property damage. Open the following link for a comprehensive "Canmore-area Coalmines Map" - Reference Credit: Ben Gadd, 2012]
(h). If buying in moutainous regions, what is the history, frequency, and severity of avalanches in the area? [For further information on avalanche warnings per region, visit: https://www.avalanche.ca/en/map ].
(i). Due diligence question Buyers should ask their insurance company: given the property’s geographic location, is it insurable and at what annual cost?
To properly identify and handle these geotechnical risks, Buyers are encouraged to:
(i). Place a ‘Subject to Satisfactory Geotechnical and Environmental Engineering’ condition in your offer to purchase;
(ii). Working closely with your Buyer REALTOR®, check out Government Websites for general information on soils (e.g. the following website is used in the Province of Alberta by the Alberta Energy Regulator and Geological Survey: https://ags.aer.ca );
(iii). Prior to removing your condition, engage the services of quality geotechnical and environmental engineering firms to perform detailed soil tests / analyses.
(3). Forestry Risks:
Many Buyers (particularly rural) enjoy the appeal of forests – they can be private, can be incredibly scenic, and can provide homeowners with a real connection to nature. However, forests create risks that Buyers must understand before closing a purchase.
Below is a list of key important questions Buyers should ask as part of due diligence:
(a). Does the Municipality impose a minimum setback distance between the back fences of perimeter properties and the surrounding forests (i.e. action of clearing trees and undergrowth surrounding the community to prevent any sudden forest fires from becoming uncontainable and jumping from the forest to the municipality)?
- Note for “environmental reasons” many municipalities currently do not impose minimum setback distances to surrounding forests and by doing so, they are valuing a few groves of trees above the lives and property of their perimeter property-owning taxpayers! [A key problem with the environmental argument: the strategy of clearing trees helps to prevent spreading of fires by eliminating toxicity (i.e. air pollution) from burning structures; roads; vehicles; etc. in a fire.]
- It is suggested that insurers and property owners lobby municipalities to clear out setback distances of trees surrounding the community so that in the event of a fire, in many cases it can be contained without jumping to houses and causing catastrophic damage and potential massive injuries and loss of life.
- Setback distances could vary between shorter distances of 50 m up to 500 m or more depending on factors such as: forest density; forest undergrowth; level of moisture; ignition factors; and topographical / wind factors propelling fire but assist firefighters with ‘making a stand’ outside the municipality perimeter.
- Case: in 2016, a gigantic dangerous fire broke out in a large forest surrounding the medium-sized City of Fort McMurray in Northern Alberta, Canada causing catastrophic property damage for residents and businesses. Fort McMurray did not have any policy that required forest clearing of a minimum setback distance surrounding the community – had it been proactive and done so, it is predicted that billions of dollars property damage could have been saved.
- For protection against fires when buying near a forest, consider the value of “Class A” fire-resistant roofing / siding materials for Asphalt Shingles; Clay Tiles; Concrete Tiles; Metal Roofing; and Slate Tiles (reference source for further information on these materials: https://kelly-roofing.com/).
- During California, U.S.A. wildfires, in some instances there was one house left standing while all surrounding houses were burnt to the ground – many people wrote it off as ‘divine intervention’. While that may have played a hand, more often than not: the home left standing had Class A fire-resistant materials (e.g. Clay Tile, etc.) while all neighbour houses had regular combustible materials.
- It must be noted: many areas of California unfortunately do not have policies in place of required forest and undergrowth clearing of a minimum setback distance surrounding the community which have had catastrophic results.
- Proactive forestry management is key to avoiding fires and it is suggested for communities to lobby Government officials who are derelict in fire prevention.
(b). Where are all the Fire Stations located and are there future plans of adding new stations / expanding stations / deleting stations / and / or moving stations?
- This is important because in the event of a fire, response time is critical and can make the difference of a fire being put out in time. This is a real major drawback of rural forest properties: if the fire department takes 20-30 minutes to get out to your property, how much fire damage will be done in that time?
(c). What are the Fire Department’s plans for fighting fires that develop in forests outside the community, and what areas will be barricaded to ‘make a last stand’?
- The reason this is vitally important: in the event of a forest fire, where the Fire Department sets up to make its last stand will determine which areas of the community it intends to save and which areas it will just simply let ‘burn out’.
- What FD extinguishing methods will be used (e.g. trucks; helicopters; planes) and what are the FD’s evacuation plans (and timeframe) when fire breaks out?
- Sometimes the FD can knock on an endangered homeowner’s door and require immediate evacuation of the family with only a few minutes to react causing a flood of vehicles trying to exit in a short timeframe while the fire is bearing down on the evacuees and roadways. For this reason, when a fire is within range, it is recommended that homeowners ‘self-evacuate’ at a time of their choosing to avoid the onrush of vehicles and being unable to exit safely.
- Also important: a supply of food, water, first aid, and full tank of gasoline to be ready for the possibility of being stranded in heavy traffic for 24-48 hours+.]
- Before fires break out, quality Fire Departments will often develop proactive evacuation plans including for fighting various fires (i.e. depending where the fire may break out) that are often not made readily available to the public.
- To ensure your property is protected, it is important to demand transparency and request freedom of information for all plans to be revealed to determine suitability combined with lobbying local officials to modify plans as necessary.
(d). In places like the Rocky Mountain forests, there can be ticks that cause Spotted Fever or Lyme Disease, plus Pine Beetles, etc. that create other kinds of hazards for residents and property. What proactive measures (if any) are being taken by the Municipality to spray for dangerous insects and prevent the spreading of disease?
(e). Being next to a North American mountain (or other) forest has wildlife dangers including but certainly not limited to encounters with cougars; grizzly bears; black bears; brown bears; elk; moose; deer; racoons; and a myriad of other creatures.
What proactive and reactive measures do the Municipality Animal Control Officers take to prevent animals from entering Municipal limits; expediently and efficiently capturing and tranquilizing or euthanizing various dangerous animals that trespass private property and roadways creating a safety hazard for adults, children, etc.?
- Note that some Municipalities take a very soft stand on removing dangerous animals which creates hazards for property owners and visitors to the area.
- Dangerous wildlife such as bears and cougars can scale large fences in seconds placing property owners at severe risk with little time to react.
- To prevent attracting bears, some Mountain area communities (e.g. Town of Canmore) have regulations that: (a). Outlaw residents from growing certain types of trees and shrubs on their property (e.g. fruits, berries, flowers, etc.); (b). Control garbage disposal; and (c). Control ‘interaction behaviour’ with wildlife.
- Cougars have attacked small children and animals coming from behind or the side particularly at dawn and dusk so it is advised not to go hiking, etc. in the woods (even just outside a mountain forest community) without proper safety preparation such as first-aid kits; flares; legal firearm; bear spray; air horn; etc.
- Some municipalities (e.g. Town of Canmore, Alberta) have pre-built ‘wildlife corridors’ that allow the safe passage of wildlife overtop of highways. It is very important to know where these corridors are located before buying a home in order to understand the path that most wildlife will be taking during migration.
(f). Due diligence question that Buyers should ask their insurance company: given the property’s geographic location, is it insurable and at what annual cost?
To properly identify and handle geotechnical risks above, Buyers are encouraged to:
(i). Place a ‘Subject to Satisfactory Municipal Forestry’ condition in offer to purchase;
(ii). Working closely with your Buyer REALTOR® and home inspector, check out Government Websites for information on forest fires (e.g. the following website is used in the Province of Alberta: https://www.alberta.ca/alberta-wildfire.aspx); and
(iii). Prior to removing this condition, obtain satisfactory answers from the Municipality (and other sources as may be necessary) to all the relevant questions above.
* Final caution notes: properties with forestry; geotechnical; or flooding risks may or may not be classified as ‘latent defects’ which Sellers are legally required to disclose for the simple reasons that: (a). Sellers may not have any engineering reports that identify the existence of these issues; (b). A suspected (example) 40% chance of a negative occurrence is not the same as 100%; and (c). In Alberta it is ‘Buyer Beware’.
In summary, buying property near rivers, mountains, and forests is not without major risk and consequence, hence Buyers must be careful to: (a). Select the best available Buyer REALTOR®; inspection company; and engineering companies; and (b). Take proactive due diligence actions, including asking questions and conducting research outlined in this article, to help maximize your likelihood of a very rewarding purchase!
Disclaimer: for those readers not currently represented by another licensed REALTOR®, to obtain more information on this topic and / or if you will be selling or buying in the Greater Edmonton Area, call Kelly at 780-414-6100 (pager); text Kelly at 780-717-9290; or send Kelly an email to SOLD@KellyGrant.ca to schedule a confidential appointment.
[Article written and ©2023 by Kelly Grant, M.Eng., ABR, NCSO, P.Eng. - Residential / Commercial / Rural REALTOR® at MaxWell POLARIS in Edmonton, Alberta, Canada]
