Purchasing property is the biggest, most important purchase in most individual’s lives and with the help of a reputable mortgage broker, realtor and lawyer, the process can be made substantially less stressful!
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Here are some steps to follow and legally related items to consider when looking for your first home:
1. The first step is to establish a budget. This sounds simple but with evolving mortgage rules, it is crucial that you find a reputable Mortgage Broker who can consider ALL available options for your particular circumstances.
→ In addition to the cost of the property, it is important to also consider additional closing costs such as land transfer tax (and your eligibility for a rebate), government registration fees, title insurance, legal fees, and any other professional fees where applicable.
2. Retain a reputable Realtor who has experience working in your target market. Personal transactions often require extensions or worse, include terms that cannot be met leading to breach of contract. Experienced Realtors will not only help negotiate a fair purchase price, but also have a keen eye for defects, location, layout, upgrades and reno costs etc.
3. Retain a Real Estate Lawyer. The Realtor will send the signed Agreement of Purchase and Sale to your Lawyer of choice shortly after it is executed. Our office would also be more than happy to review an offer at any point if there are unusual circumstances requiring a second set of eyes.
4. Once we have a firm signed deal, and the agreement of purchase and sale (APS) we will open a file and request the following items from you and your contacts:
• Personal information
• Mortgage information
• Home insurance information
• Property ownership history (In many cases, first time home buyers qualify for a substantial credit towards their Land Transfer Tax).
• Title search – searching this history of the property to ensure that you, the buyer, do not inherit any title defects
• Finalize numbers including Land Transfer Tax, Government Registration Fees, Title Insurance, Legal Fees and HST
• Schedule a meeting to review all legal documentation and sign final mortgage documentation, transfer/deed, and ancillary documents
• Day of Closing!
→ Unfortunately, keys are not available immediately. On the closing day our office will be funded by the lender providing the mortgage. We must work together with the Lawyer representing the seller to transfer funds, allow their office and bank to verify funds, courier original sets of signed documents, and finally release and register the deed showing you as the new owners! At this time, usually late in the afternoon, keys will be available for you and the property is yours.
5. After closing you are recommended to do the following:
• look for any new damage in the property and photograph before moving any of your items in
• look for garbage, debris or unwanted items left behind
• contact hydro/utility companies to initiate accounts
• contact tax company to ensure that they have everything they need to bill you and keep taxes up to date and in good standing
→ If any outstanding tax or water bills show up, contact your Lawyer immediately.
We hope that this list better prepares you on your search for your first home! If you have any additional questions our team at Carson Law Office would be pleased to assist you.
We look forward to working with you in the future!
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