When we talk about buying an abandoned property, we’re usually referring to a home or piece of real estate that’s been left vacant, neglected, or in some form of legal limbo (tax arrears, mortgage default, etc.). It’s not the same as a standard resale. You may find a mix of processes, including “power of sale,” judicial foreclosure, and tax-sale listings.
Because of that, the risks are higher. Homes may be in poor condition, utilities shut off, unknown legal encumbrances. For example: “buyers must take full responsibility for any existing problems” when purchasing homes sold as-is.
Key steps and things you should check
When you’re going ahead with buying an abandoned property, treat it like a serious project.
Get clear about budget & financing.
You’ll want pre-approval for financing. Some lenders hesitate because condition is uncertain. In Ontario, for example, one guide says you may need alternative financing (higher rate, private lender) because of risk.
Remember the price is only part of the cost—repairs, legal and title work, utilities reconnection, permit/renovation costs.
Do your legal research.
- Title search: Are there liens, unpaid property tax, utilities in arrears?
- Ownership: Is the current owner clear? Is the home really abandoned, or is someone still claiming rights? In British-Columbia one source pointed out title stays in the registered owner until transferred.
- Process type: For example, in Ontario the “power of sale” route is more common than full foreclosure. If you skip these you may inherit surprises.
Inspect condition.
Abandoned properties often have hidden issues: water damage, mold, vandalism, utilities off. One source says even pros can’t fully evaluate a home if utilities are off. You need a realistic assessment of how much it will take to make it liveable (or saleable if you intend to flip/rent).
Find the right opportunity, then make your offer.
Because you’re buying an unusual property, you might need to work with an experienced REALTOR® who understands distressed or “abandoned” listings. When you make an offer, factor in repair costs, legal costs, time. Be prepared for contingencies or “as-is” sale terms.
Plan your renovation or use.
If you intend to live there, rent it, or flip it, have a plan. Zoning, building permits, renovation cost estimates. If you’re buying purely for land value some of these may matter less—but the condition still affects cost and risk.
Major risks you must accept
- Repairs could run far higher than expected.
- Insurers might refuse to insure or charge much higher premiums for a neglected property. (Homes vacant long-term pose increased risk.)
- Hidden legal issues: tax arrears, liens, property still under someone’s claim.
- Financing delays or difficulties: Standard mortgages may not cover large repair projects.
- Time: It may take longer to get this to move-in ready or rentable than you expect.
When might this work for you
If you’re comfortable with risk, have experience with renovations or have access to reliable contractors, buying an abandoned property can offer value. The key: realistic budgeting, strong local market knowledge, and working with the right team (agent, lawyer, inspector). If you’re new to real estate, this may be more than you want to take on.
