In a multiple offer market we need to step back and make a few observations!
If you offer firm and without a financial commitment; you can lose your deposit.
If you offer without a home inspection; there can be unexpected repairs.
If you buy firm without a Status Certificate; your LENDER wants a report from your lawyer that everything is in order.
"Buyers NEED to recognize that “lenders may not approve financing if the property appraisal, conditions of the lands or building or any other factor pertaining to the property is not acceptable to the lender, even if a financing pre-approval has been obtained.”It also warns them that making an offer without a building inspection could lead to unexpected and expensive repairs later.
http://www.theglobeandmail.com/real-estate/vancouver/brokers-concerned-about-real-estate-offers-made-with-no-conditions/article29603246/
These issues need to be explained in detail to you [ informed consent ] because there are real financial consequences.
David Pylyp
TXT 647 218 2414 or Email
At what point during your real estate purchase you should consult a lawyer to clearly understand what you are committing to?
The Lawyer handling your real estate purchase carries out the instructions that are agreed upon in the contract. The time to make changes and corrections is before the document is Firm and Binding.
Your contract should include a condition for Financing for a specific period of time, if you are obtaining Financing. It should also include a Clause for a Home inspection by a Qualified and Licensed Home Inspector. Additional Visits into the subject property for trades, people to quote for repairs, renovation and measurements require an additional clause. Be sure to include that the SELLERS will give permission for trades to take pictures and measurements. Visits are meant to show your family what you purchased or re-measure for draperies.
This is a good time to include the Home Owners Insurance Broker and a Search of the Insurance Claim history. Have there been any previous flood or fire damage claims? Does the house have old wiring or an oil tank? Call for details.
It's most important today, to make sure that all your closing costs are capped from the builder/ developer to be a specific amount should municipalities change their lot Levy's; while you are dealing with the Period of Rescission. (cooling off period)
Once an Offer to Finance has been received; Commitment Letter, it will often detail the LENDERS requirements. Review this carefully with your lawyer and Mortgage Broker that you can accommodate all the required terms.
The contract should clearly state IF there is additional HST applicable above the purchase price.
Title Insurance is often a mandatory request that is purchased at the time of closing.
You will also pay Land Transfer Tax on the amount of the Purchase Price.
Searches need to be conducted for any outstanding work orders from the City PLUS any judgements or liens against the property. (that the previous owners may have) The utilities and taxes need to be verified. You may be eligible for Tax Rebates as First Time Home Buyers. Land Transfer Tax calculator.
Your real estate lawyer works in your best interests to secure, probably the most expensive purchase families make. During the time you are at the lawyers office, give some thought to how you hold title (who's name the house be registered) whether it is Joint Tenancy or as Tenants in Common. This is the time to discuss survivorship, your will and testament.
You will receive a Statement of Adjustments (who pays for what) prior to closing, preparing you for the amount of funds to bring to the closing inclusive of fees, taxes and net of your deposit. You will need to bring Photo ID and a credit card for Identification.
Here at Stan Gelman QC wiselawyer.ca use trusted and knowledgeable real estate lawyers and Law clerks. For more information, or a detailed quote please contact me at 905.270.5110.
Stan Gelman QC
In a multiple offer market we need to step back and make a few observations!
