Buying a Home
Making one of the most important purchases of your life needs expertise and guidance. Your Bay Realty Realtor has expert knowledge of the neighbourhood, market conditions, zoning, tax implications, and financial assistance. He or she will provide all the information needed to make an educated decision on your future home. Excellent negotiating skills will ensure your money is well invested.
Your sales associate will:
- Help you arrange the mortgage with the most suitable institution
- Keep you abreast of new properties on the market
- Arrange viewings of homes
- Draw up your offer to purchase
- Negotiate the best terms for you
- Assist you with the subject conditions of your sale such as inspection, financing, title, and the disclosure statement
- Forward conveyancing documents to your notary or lawyer
- Assist with key transfer on moving day
Duties of a sales associate acting as your Buyer's Agent:
- To protect the seller's negotiating position at all times
- To provide undivided loyalty and keep the confidences of the seller
- To adhere to a strict Code of Ethics and a high standard of practice.
- To exercise reasonable care and skill in performing all assigned duties.
- To be accountable for all money and property placed in the agent's hands. .
Buyer Representation Agreement:
You may be asked to sign a written contract called a Buyer Representation Agreement which explains services the sales associate will provide and establishes a fee arrangement for the agent.
If the sales representative is not using a Representation Agreement, the commission payable to the Realtor is being paid by the seller out of the proceeds from the transaction.
How a Buyer Can Prepare
- Show your realtor some home styles and areas you like.
- Be in touch with your Realtor with feedback on your timelines and changing needs. Your Realtor will hang in there with you no matter how long it takes but you must keep her in the loop.
- Give your sales associate notice a few days before you want to go out so he or she can prepare the schedule and book viewings with the seller.
- Come prepared to make notes, take pictures, and measure.
- Wear slip-on shoes as most homes will request you remove your shoes. A good pair of light slippers protects the carpets and your feet.
- Let your Realtor know how much time you have to devote on a give day so the showings can be scheduled accordingly.
- Have your financing in place before you go out to look. Many a buyer has been heartbroken when he finds the perfect house the first day but is not in a position to move on it .
Important Real Estate Terms to Know
- Subject Clauses or Conditions: These are the "I will buy it if I am satisfied that_____" clauses in your contract. They usually include inspection, title, Disclosure Statement, financing, strata documents such as bylaws, minutes, and financial statements They can include a variety of clauses to cover your concerns when purchasing a property. Subject clauses are usually 5-7 days on a detached home and 7-10 days on strata. The length of time is negotiated along with the other terms of the contract.
- Property Disclosure Statement: This form is filled out by the sellers and allows them to disclose known defects with the property. They buyers will be give this document to read prior to or after an offer is made.
- Completion Date: The day on which the title changes from the seller to the buyer and the money is paid out
- Possession Date: The day on which the seller gives up possession to the buyer. Unless otherwise noted in the contract, this will be at noon.
- Adjustment Date: This is the day that the lawyer/notary uses to adjust who owes what on taxes and any other fees paid by the seller.
- Property Transfer Tax: This is a provincial government tax for transferring property from the seller to the Buyer. It is payable on all types of properties. The formula is 1% on the first $200,000 and 2% on the balance. Under certain conditions, you can have this tax waived. First time buyers and less expensive properties often fall within the exemption.
- Easement: A legal right to use or cross another person's land for certain limited purposes. This is usually a utility company. Easements and Rights of Way are found on the Title.
- Lien: Any legal claim against a property placed on the title to retrieve money owed on a debt.
- Conveyance: This term is used to describe the process of transferring the seller's title to the buyer. Real Estate offices and lawyers have conveyancing secretaries who prepare the documents.
- Statements of Adjustments: These are the closing documents drawn up by the lawyer/notary. It is like an invoice that outlines your debits and credits. Your lawyer/notary will present you with this when you go in to sign the final documents a few days before the Completion Date.