THE STEPS TO BUYING A HOME
Selecting an Agent, Home, and Financing
- Initially the purchaser has an interview with the Agent (Sales Representative) of their choice to discuss the Purchaser's wants and needs and the Agent explains the buying process.
- Purchaser sees the lender of their choice to obtain mortgage pre-approval.
- Purchaser and Agent conduct search and find the purchaserís new home of their dreams!
Making an Offer to Purchase
- Purchaser submits their offer to purchase property. Often the Purchaser has conditions such as:
†i)Confirmation of mortgage final approval†
†ii)Home inspection approval
†iii)Spousal Approval condition or Property Disclosure approval etc.
- The offer is negotiated to acceptable terms and conditions for both parties.
- Seller accepts Purchaser's offer to purchase.
- The purchaser's deposit is placed "in trust" on their behalf. The deposit is usually between $10,000 and $40,000 depending upon the property value.
Conditions of Offer
- Condition removal process: This typically takes from 5 to 10 business days and is usually removed in the following order:
i)Review Property Disclosure & approval
ii) Have home inspected by an inspection professional & approval
iii) Other conditions met & approved
iv) Confirmation of mortgage final approval
- If any of the conditions are found unacceptable to the Purchaser, the sale can be and usually is voided.
Waiver of conditions: as each condition is met the Purchaser must remove (waive) the condition from the Offer to Purchase within the predetermined condition removal time period. If written waivers are not completed and presented to the Seller within the time frame allowed, the agreement of purchase and sale may be voided.
Deed Transfer, Mortgage, and Payment
- Unconditional offer is delivered by Sellerís Agent to the Purchaser's lawyer.
- Call moving company to get an estimate of moving costs.
- About 2 to 3 weeks before the closing the Purchaser instructs their lawyer how to complete title description. (How the Purchaser want their names to be registered on title.)
- Purchaser will make arrangements for transfer & connection of utilities: hydro, water, and gas; telephone, mail forwarding etc.
- Instructions to prepare mortgage are delivered to Purchaser's lawyer from the financing institution.†
- Seller's lawyer obtains description of property and prepares transfer deed for execution (signing) by the Seller.†
- Seller executes (signs) transfer with their Lawyer.
- The Purchaser's Mortgage documentation is prepared and finalized.
- The Seller's lawyer delivers transfer of deed and land documents to the Purchaser's lawyer under trust conditions.
- Purchaser needs to be sure to arrange for home and mortgage insurance or may not be allowed to move into new home until this is finalized and proof is delivered to lawyer.
- Purchaser's lawyer calculates the cash balance the Purchaser will need to close their home purchase after all adjustments & fees.
- The purchaser's lawyer delivers this "Statement of Adjustments" to the Purchaser.
- Purchaser executes (signs) transfer & mortgage documents & delivers cash difference (balance owing) from the Statement of Adjustments.
- Balance owing forwarded to Seller's lawyer under trust conditions.†
- Purchaser's lawyer submits transfer and mortgage documents to Land Registry Office for registration.
- Seller's lawyer receives balance owing and holds it "in trust" pending completion.
- Registration of transfer and mortgage obtained - title is now in the Purchaser's name (possibly) subject to mortgage.
- Purchaser's lawyer requisitions mortgage funds and forwards the mortgage funds to the Seller's lawyer "in trust" that any unacceptable title encumbrances be removed.
- Seller's lawyer receives mortgage proceeds and holds "in trust" pending completion.
- Seller's lawyer obtains discharge of encumbrances and reports to Purchaser's lawyer. Pays out Seller mortgage if any.
Ready to Move In
- The Seller's lawyer releases keys to purchaserís solicitor.
- Copy of acceptable title, in Purchaser's name, delivered to Purchaser's lawyer.
- Purchaser's lawyer reports to financial institution.
- Seller's lawyer reports to Seller: accounts for funds received and releases funds to Seller.
- Purchaser's lawyer reports to Purchaser.
Transaction is complete.