Buying a home can be an intimidating and overwhelming process if you haven’t done it in a while, but with some guidance from our years of experience, you can rest assured knowing that your best interests will be looked after.
It’s a great idea to meet with your mortgage broker and go through the pre-approval process to see just how much you can afford.
Realtors are a great resource for you. Along with their knowledge and contacts, they can provide you with great advice to help you purchase the new home of your dreams.
You will want to work with a REALTOR® that can serve your best interests and
Find an experienced real estate lawyer by asking your REALTOR®, friends, family or co-workers.
Your lawyer will take care of the legal steps required to transfer the ownership of the property you are purchasing.
It’s important to know just how much you can afford before you go any further. There are a lot of expenses that go along with the purchase of a new home as well as recurring monthly expenses. With the purchase of a home you can expect costs such as a down payment, legal feels, title insurance, home inspection fees, property transfer and taxes. Of course, your monthly expenses will include your mortgage payment, utilities, regular maintenance, property insurance and property taxes.
If you do not have a mortgage professional already, Click here to view our list of preferred mortgage Brokers in the local area
Once you have your financing in order, it’s time to put a plan together. You will want to review the following:
If you need assistance researching the local communities, click here to review our local communities
Below are the 10 important Elements of an Offer:
If the Terms or conditions of the Agreement are not 100% acceptable to the Seller, the Seller may make counter offer, in which they will make an Irrevocable offer back to the Buyer. This process can go back and forth until an Agreement is made.
Once an Agreement is made, the Buyer must submit their deposit
See below for a copy of a ‘Plain Language’ Agreement of Purchase and Sale
Conditions are not required in the sale of real estate, but certainly are recommended to avoid unforeseen costs and to avoid any liability. Conditions can be either ‘Waived’ by way of a “Waiver” or removed in an “Amendment to the Agreement” or they can be ‘Fulfilled’ by way of a “Notice of Fulfillment”. Notice of fulfillment is only used when the elements of the condition were carried out and the Buyer is satisfied. A Waiver is used if the condition is being removed without carrying out the element of the condition (ie. Chose not to do a Home Inspection, even though the Agreement was conditional upon an inspection)
It should however be noted that in competitive offer situations, where there are more than 1 buyer making an offer on the same property, that it is typically the offer which has the least amount of conditions that will be successful… even if it is for less money.
Once all conditions are removed or fulfilled, the Agreement becomes FIRM. In Ontario, a FIRM Agreement is a binding contract that carries liability on both the Buyers and Sellers to ensure the contract/sale is completed. If either party tries to break the Agreement or is unable to fulfill their obligations to close, a legal lawsuit may occur to recover any damages/costs which the other party suffered from. These costs can be extensive and very expensive. in the end, no one really wins and a lot of time and effort is wasted… therefore, make sure you can close before removing your conditions!!!
It is during this time that the Buyer will prepare for the upcoming closing. If a re-visit is negotiated in the contract, then the Buyer and their REALTOR(R) will book an appointment to come back to the home for a variety of reasons, such as:
Also during the unconditional period there are a verity of things a Buyer will be required to arrange to prepare for the closing. Below is a Checklist of typical items a Buyer will need to arrange to ensure a smooth closing:
After the agreement has become FIRM, the Buyers REALTOR(R)’s office will send a copy of the Agreement to their clients real estate lawyer to start to prepare the title transfer and communicate with the Sellers Real Estate lawyer to ensure a smooth transfer.
The Buyers lawyer will advise the buyer to bring a certified cheque into their office, a few days prior to the closing, for the remainder of the downpayment + applicable legal fees. This will be held in the lawyers trust account pending the closing.
The Buyer and Seller’s lawyers prepare the transfer of deed and registration paperwork to take to the land titles office, or ready the title transfer via online Land Titles System. The Seller’s lawyer usually send a package to the Buyers lawyer with title info as well as the property keys.
The buyer’s mortgage lender, once it is satisfied that the Buyer has fulfilled all of it’s mortgage requirements (i.e.. arranged home insurance, paid off any credit card debt required to be paid off, or any other conditions for approval), will transfer the mortgage amount to the Lawyers trust account. Once the Buyers lawyer has the mortgage money from the bank, they will have the total amount which will be forwarded to the Sellers lawyer to complete the sale.
On the day of closing the Buyer and Sellers lawyers transfer the title to the Buyer and the cash to the Seller*. Once this has been completed, the ownership of the property is officially the Buyers!
The Buyers lawyer will generally call the Buyer to advised that the deal has closed at that they can come pick up the keys from their office.
Time to move in!
* This assumes that there is no vendor financing in the Agreement of Purchase and Sale.
It is our goal to provide ultimate service to all our clients so that they are always thinking of referring the Toombs name to those who are looking to buy and sell real estate.