Navigating the Home Buying Process with Confidence
The Process, Step by Step
The Agreement and Deposit
Once an offer is accepted, it becomes a legally binding agreement between the buyer and seller. A carefully drafted agreement is essential to protecting your interests and ensuring a smooth transaction.
Helpful tips to keep the process on track:
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Keep everything in writing.
All terms, counter-offers, amendments, and conditions should be documented clearly and signed by both parties. I will prepare and review all paperwork with you and ensure you receive copies of everything. -
Stick to key timelines.
Your agreement will include deadlines for conditions such as financing, inspections, and closing. Meeting these timelines is critical to keeping the transaction moving forward smoothly. I will keep you informed at every stage so you’re always prepared for the next step.
The Real Estate Lawyer
In Ontario, a real estate lawyer is responsible for handling the closing. Your lawyer will:
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Hold the deposit in trust
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Conduct a title search to ensure the property is free of liens or unexpected encumbrances
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Confirm zoning, easements, and any restrictions that may affect the use of the property
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Register the transfer of ownership and mortgage
Some properties may have registered easements or restrictions that limit certain uses, such as parking, additions, or access. Your lawyer will review and explain these details before closing.
How to Hold Title
You may wish to consult with a lawyer or tax advisor regarding how ownership should be registered. Different ownership structures can have legal, estate, and tax implications, particularly for investment properties or joint ownership.
Inspections
After your offer is accepted, a licensed home inspector will examine the property within the timeframe set out in the agreement. You may also choose to bring in specialists (such as for roofing, structure, or HVAC systems) for further evaluation.
For commercial properties, lenders may also require an environmental assessment. I can recommend reputable inspectors and specialists as needed.
Based on the inspection results, one of two outcomes typically occurs:
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All conditions are satisfied and waived, moving you closer to closing, or
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You request a renegotiation of the terms, most commonly related to price or repairs.
Financing and Appraisal
Maintaining close communication with your lender is essential. Your lender will advise if additional documents are needed to finalize your mortgage approval.
If your offer is conditional on financing, the lender will arrange an independent appraisal to confirm the property’s value. Appraisers evaluate value based on factors such as comparable sales, size, condition, and income potential (for investment properties).
As closing approaches, it’s important to confirm with your lender that all requirements are complete to avoid delays.
Condominium or Association Approval
If you are purchasing a condominium or a property subject to an owners’ association, review all rules, bylaws, financial statements, and documents as early as possible. Ensure that any required applications, fees, and approvals are submitted promptly. Some associations require formal approval before possession or move-in.
Property Insurance
If you are obtaining a mortgage, your lender will require property insurance prior to closing. Coverage amounts vary depending on the lender and property type.
Ways to manage insurance costs include:
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Choosing a higher deductible
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Asking about discounts for safety features such as alarm systems, smoke detectors, or updated roofing
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Ensuring you insure the building itself, not the land value
I’m happy to recommend knowledgeable insurance professionals experienced with residential, condominium, and investment properties.
