Main steps to expect in the purchase process…
Looking at properties
We will guide you through this process by discussing in more detail what type of property you are seeking, as well as setting you up on new listing update e-mails.
Getting a mortgage pre-approval
If you require financing in order to purchase a property, it is important to get a mortgage pre-approval as soon as possible in the home search process. Not only will it help in setting realistic budget, you will also become aware of what monthly payments will look like and what will be required in order to get a mortgage to the final approval stage. This can take some time depending on a number of factors, so the sooner you can start the process the better. If you don’t have a bank or mortgage broker that you have a relationship with, we can make some recommendations.
Making an offer
Once you find a property you would like to buy, we will put together an offer.
The offer will include:
- the price you are willing to pay
- inclusion and exclusion of any appliances and other items - basically what stays with the property
- closing date of the purchase, the day that you will take possession
- deposits
- conditions of the purchase
- additional terms of the purchase
- expiration of the offer
Some commonly included conditions are:
- financing
- sale of your current home
- home inspection
- condo document review
- legal review
Once the offer is presented to the seller they can respond in one of 3 ways. They can accept, reject or counter the offer. If the seller counters your offer, you (the buyer) can then also respond by accepting, rejecting or countering the offer. Until the offer is accepted by both parties, both you and the seller can walk away from negotiations for any reason.
ONCE YOUR OFFER IS ACCEPTED
Once your offer is accepted, the property is now conditionally sold.
If your offer includes conditions, you’ll have a set time frame to fulfill or remove those conditions and therefore firm up the deal. We will assist you in the steps in order to fulfill all the conditions in time. As the buyer, you can either remove conditions (by signing a waiver) prior to the condition removal day and time, or decide not to proceed and walk away from the by deal (by singing a non-waiver).
Deposits
Once your offer is accepted, the deposit or multiple deposits will be due by a specific date. The timing of this is important, the seller can void the contract if the deposits are not submitted by the time specified in the offer. Typically any deposits prior to condition removal are refundable, once conditions are waived those deposits become non-refundable.
Finalize your mortgage
The condition period is also the time for your bank or mortgage broker to finalize the mortgage. Stay in contact with your mortgage broker or lender to finalize thee mortgage details. They will require a copy of the offer. Please give you bank our contact info, they can contact us directly for any other information they require related to the property. The bank may require an appraisal, which can take some time to complete.
Booking a property inspection
We can assist here by making recommendations of qualified home inspectors, booking a time and going through the report.
Review of condo documents
We will assist with this step.
Legal Review
At times this condition is appropriate and encouraged. We will assist here as required.
Any other conditions
If we have any other conditions, we can assist here and guide you through the steps.
ONCE YOU WAIVE ALL CONDITIONS
Once you waive all conditions, we now have a firm sale. Deposits after the waiver of conditions are nonrefundable should you not be able to close to deal. Sometime after condition removal, the deposits are forwarded by the listing brokerage to the seller’s lawyer and are held in trust until closing.
Engaging a real estate lawyer
If you haven’t reached out to a lawyer yet, this is the time to do so. We can make lawyer recommendations if you don’t have one.
Leading up to possession day, the lawyers from both sides will arrange to transfer the property title from the seller to the buyer. The mortgage funds will be transferred to your lawyer's trust account, and then to the seller’s lawyer’s trust account on possession. Your lawyer will bill you for all additional expenses such as land transfer taxes or outstanding legal fees. Reimbursement to seller for the unused portion of any prepaid property taxes or utility bills.
Securing insurance
It is important to obtain home insurance for the property as of the date of possession. You will have to show proof of insurance to the institution that provided your mortgage, lenders typically require it before releasing funds.
Set up utilities and services
Leading up to possession it is important to arrange transfer of utilities (electricity, water, gas) and setting up other services (internet, cable) to your name, effective the date of possession.
Final walk through
We will arrange a time for a final walk through to ensure the property is in the same state as when you viewed it or that any other requests have been fulfilled. Should any issues arise, we will be in touch with the seller and/or lawyers involved in the closing.
Key transfer
On possession day, once all funds are transferred, the seller’s lawyer will notify us that we can release the keys to you. Once this is completed, the keys are in your hands and the home is yours! Congratulations!