Buying Home Procedure

When you buy a home in Canada, the procedure will be very similar even though you maybe live in a different province and there are different real estate acts. Here, we will introduce you the main procedure in the province of Ontario.

step1Choose a Real Estate Agent
You may search a home yourself if you don’t want a agent.After you find a right home that listed in MLS or private listing, you need to contact the listing agent for making an offer. But there will be no agent exclusively represents you. For more protection, you’d better find a professional real estate agent to represent you. You may sign a “Buyer Agency Agreement” -Form 300 (standard form of Ontario Real Estate Association – OREA) if you choose a real estate agent.
step2Make Offer to the Home You Like
You have to make an offer – Agreement of Purchasing & Sale (Form 100 of OREA) + schedule documents, for purchasing a home after searching and comparing many homes you visited. If you have your own real estate agent, he or she may tell you his or her professional opinion for the current property value after comparison with its neighbors’ sold homes. A good real estate agent will bring you correct information and can help you save your money. If you don’t have your own agent and choose the listing agent as a dual agent, you’d better have enough knowledge about home value, market trends, contract law and so on, otherwise it’s limited to get more information and you may lose your money.
Your offer may be rejected or counted back. This procedure is a negotiation procedure. The existing property owner and you will negotiate the final price through the offer/countback offer/recountback offer through agent(s). But there is only one final result, either ACCEPT or REJECT under some conditions. If it’s accepted, mostly you need to pay a deposit to the listing brokerage through your agent. Recently, real estate agents just use the initial offer (Form 100) to modify something you want to change and intial where you change for a conter-back offer.
step4Fullfill Conditions or Make the Offer Null
You may fullfill all conditions you listed in schedule(s) to make your offer to a legal binding agreement that can’t be voidable. The form is called “Notice of Fullfillment of Conditions” (Form 124 of OREA). You may also waive all conditions of the accepted offer.  Thus you need to sign a Waiver (Form 123 of OREA). Or if any condition can’t satisfy you based on the schedule(s), you may not do anything, then the contract will become null and voidable. Of-cause, if you want to get back the deposit you paid, you need to sign a Mutual Release (Form 122 of OREA) to fomally release all obligations and covenants each other. During this stage, usually you need to arrange your mortgage if your offer is accepted. You need to get mortgage confirmation before the deadline in the schedules. For how to get a better mortgage rate, please read the next procedure: Mortgage Procedure.
step5Find a Lawyer to Close Your Purchasing Agreement
After your offer becomes an official legal binding purchasing agreement, you may find a lawyer to close your agreement legally and safely so that you can get your home on time under your title. During this stage, all you have to do is just to transfer all documents of your offer, mortgage commitment letter from the lender and a pre-approved letter for your future home from an insurance company to the lawyer, then just relax! Your lawyer will check the title, prepare all documents for the lender, insurance and the title registration etc., including all expenses sharing for the hydro, gas, property tax paid or unpaid… 
step6 Close Your Agreement
Before 1 or 2 days of your closing date, your lawyer will arrange you to sign many agreements, including mortgage agreement and insurance. Your lawyer will prepare a detail statement about reconciliation of the expense, payment and mortgage. You need to pay all money you have to pay according that statement, including down payment at that time.  After signing all documents, you just wait for the closing date to get the key. The lawyer will do all legal procedure for you on that closing date, including registry your title, insurance title, get money from lender, transfer money to seller’s lawyer and get key etc. After getting the key, you can move in your new home. That’s so simple, right?
For knowing detail about mortgage procedure, please click “Mortgage Procedure” under “Knowledge” page.

All Contents © By CBMR Financial Group Inc.