Why use the
services of one real estate professional - when you can have
A whole team working for you! |
Buying a home....
Buying real estate requires extensive technical
knowledge. In the buying of a property your Blinkhorn Real Estate professional will:
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Discuss with
you your needs and requirements to establish exactly what you are
looking for in your future home.
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Search the
market for suitable properties that meet your criteria and arrange
viewings.
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Advise you
on specific properties
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Act as a
negotiator on your behalf to achieve the best possible price
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Facilitate
communications between all parties involved
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Define your
needs, answer your questions and respect your privacy /
confidentiality
Below is an
outline of the buying process...
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Researching the fair market value of a
property |
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With the help of your broker or salesperson,
compare the house you like to other properties in the
neighbourhood and try to identify the elements which could have
a positive or a negative impact on the asking price: location,
size, year of construction and state of preservation of the
property, etc. This information will help you determine the
price you will offer the seller. |
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The offer to purchase is a contract through
which a person undertakes to purchase real estate. In return,
the document also indicates that the seller undertakes to sell
the real estate once the offer to purchase has been accepted. An
approved compulsory form will be used by your salesperson to
make this offer. |
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The Offer to Purchase |
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Content of the offer to purchase |
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The offer to purchase content is
designed to protect both buyers and sellers. It is important to
make sure that the information contained therein is in
accordance with that of the listing contract. The offer to
purchase must identify the parties bound by contract, i.e. the
buyer and the seller. It should also indicate the names and
addresses of the buyer and seller. |
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As its name indicates, the object of the offer
to purchase is the purchase of real estate. The term sets a
deadline after which the offer to purchase becomes null and
void. The offer to purchase should contain a detailed
description of the real estate, including street address and
items to be included as well as conditions to be met. If the
real estate is a condominium, the contract must specify the
number of parking and storage spaces and their numbers. |
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Object and term of the contract |
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Price and deposit |
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The offer to purchase must indicate
clearly the purchase price offered by the buyer. The price
statement usually indicates that the payment will be made in
full upon the closing.
When presenting an offer to purchase, the buyer may give the
listing broker a deposit on the purchase of the real estate.
There is a section to this effect on the offer to purchase. The
deposit must be placed in a brokerage trust account and will be
deducted from the balance to be paid upon the closing. Once the
offer to purchase is accepted, the broker will deposit the funds
in a trust account. This way, your deposit will be protected by
the Recovery Fund up to a maximum of $15,000 per transaction.
Should a buyer choose not to complete a purchase for reasons
other than a clause in the agreement, the deposit may be
forfeited to the seller. |
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The offer to purchase contains a clause
stipulating that the buyer has examined the real estate and
declares that he is satisfied therewith. Therefore pay attention
to your requirements - make sure all your conditions are
included on the offer to purchase: mortgage acceptance, building
inspection, etc. If the house you are interested in is located
in a rural area, have a water test (quality and quantity) and a
water purifying system conformity check done. Any conditions
must include an expiry date. |
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Declarations and Conditions |
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Other Clauses |
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The offer to purchase contains a
clause by which the seller promises to deliver the real estate
in the condition in which it was when the buyer examined it. It
also states the obligations of the seller regarding the titles
of ownership he must, therefore, supply authentic copies of his
deed.
The offer to purchase has a mechanism to protect the buyer who
finds a defect or irregularity after signing the offer to
purchase. This is called an inspection clause.
The offer to purchase may contain a reference to addendums. The
addendums are part of the offer to purchase. The addendum
usually contains clauses that are not part of the pre-printed
offer to purchase. |
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The agreement of purchase and sale must include
the buyer's and seller's signatures as well as that of their
respective spouses, if applicable. Each copy must bear the
original signature of each of the parties. In addition, a
witness's signature is recommended. |
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Signatures |
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The Counter-Offer |
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The owner-seller of real estate may
accept or refuse any offer to purchase presented to him. He may
also make a counter-offer. The first purpose of the
counter-offer is to signify to the buyer that his offer to
purchase has been rejected, but that the seller would be
agreeable to the offer if specific changes or additions are
made. The counter-offer form may also be used to include or
exclude certain items, to change the selling price or simply to
further clarify the offer. The buyer in turn may not accept the
counter-offer and wish to make a new offer.
A counter-offer has the effect of canceling all previous offers
and counter-offers made by the buyer or the seller. Therefore,
if you do not accept the counter offer, and you are making a new
offer, all inclusions and exclusions must be repeated, including
the conditions retained by the parties in the previous steps.
The conditions of acceptance of the counter-offer set a
deadline for its acceptance and notification. Any counter-offer
should also include a reasonable deadline (usually between 24
and 48 hours) by which the counter-offer must be refused or
accepted.
If the counter-offer is accepted, the property will be
considered sold, although the transaction will only become
official on closing. However, the transaction cannot be
completed as long as all of the conditions of the contract have
not been fulfilled. Therefore, a maximum deadline must be set
for the conditions to be carried out, in order that the closing
can be finalized. |
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Once the offer to purchase or the counter-offer
has been accepted, the next step is to make the transaction
official. The two main components at this stage are the title
examination and the closing. The property transfer requires the
services of a lawyer, but your real estate broker or salesperson
continues to play a central role at this step of the real estate
transaction. Among other things, he will make sure that all
documents required are available and will bring assistance in
case any problem arises. |
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The Property Transfer |
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Title Examination |
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The lawyer will do the necessary
research in order to guarantee an indisputable title of
ownership. He will verify that the seller is indeed the owner of
the real estate, whether he has the right and the ability to
sell, if his spouse or other persons must consent to the sale,
etc.
Using the legal description and location certificate, he will
verify whether the lot measurements are accurate, whether the
real estate is actually erected upon the lot sold, if the house
was build in accordance with municipal by-laws and zoning laws.
He will also verify if the neighbour's property encroaches on
your lot, if there are rights of passage, etc.
Through the title examination, the lawyer will be able to detect
the charges or real rights likely to affect, limit or devalue
your right of ownership. |
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The final step of the transaction is the
closing which involves the completion of the necessary legal and
mortgage documents.
Once the closing is final, the lawyer will
register the transaction with the Registry of Deeds. The lawyer
may retain the funds until this step has been completed. |
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Closing and Registry of Deeds |
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