The idea of finding your new home involves a combination of research, time, effort, and of course a broad range of emotions. Knowing where to start and what to expect can ease you through the process of becoming a home owner, ideally in the most straightforward direction.
Knowing Where to Start
We suggest you begin by connecting with three important contacts: a banker/mortgage broker, a realtor, and a real estate lawyer.
- Your banker or mortgage broker can help you get “pre-approved” to give you an idea of what you can afford and what your potential payments would be. As a mortgage is often your largest financial commitment, ensure you are informed on this before you start the hunt for a home.
- Find a Realtor who understands your needs, is familiar with your preferred area, and can strongly negotiate for you. Once you have found your dream home and you are ready to put in an offer, you will work with your realtor to put together a contract. In addition to the purchase price, two critical decisions in the preparation of your contract will be choosing the dates to close and having additional terms and subject conditions carefully drafted.
- Contact your real estate lawyer – the earlier, the better. Often real estate contracts include a subject condition that gives buyers time to have the contract and the property’s title reviewed. This review can help ensure the property meets your needs, especially if you have plans to renovate or change the use of the property.
Once you have your team in place, you are ready to proceed. If you are fully satisfied with the contract terms and you are confident that you have both the desire and ability to see the contract through to completion, you will work with your realtor to remove the subject conditions and make the contract binding.
This is often when your real estate lawyer and their conveyancers will reach out to you to obtain the necessary details from you in order to prepare the closing documents for your purchase. Keep in mind that once these documents are prepared, you will be required to attend your lawyer’s office to sign the documents- so if there’s plans to be out of town around the closing date let your lawyer know as soon as possible.
It is also often at this signing appointment that your lawyer will tell you the final funds required to complete your purchase. This final figure will take into account your deposit paid, any mortgage funds used, applicable property transfer tax, and adjustments for property taxes, utilities and strata fees (if applicable). Additionally, this will include the legal fees and disbursements – which are charges your lawyer incurs on your behalf for items such as obtaining title insurance, strata documents, municipal tax information, and Land Title Office fees. Try out our Closing Cost Estimator on our website to get an idea of how much money you may need to complete your transaction at www.pihl.ca/closing-cost-estimator.
Once you have signed your closing documents and provided your funds, you can leave the completion of the transaction to your lawyer knowing that your team has successfully worked together to make your purchase as seamless as possible.
The information provided above is for educational purposes only. This information is not intended to replace the advice of a lawyer or address specific situations. Your personal situation should be discussed with a lawyer. If you have any questions or concerns, contact a legal professional.The information provided above is for educational purposes only. This information is not intended to replace the advice of a lawyer or address specific situations. Your personal situation should be discussed with a lawyer. If you have any questions or concerns, contact a legal professional.