Frequently Asked Buyer Questions

Buyers Frequently Asked Questions: As a buyer, you have to make sure to know how the market works before you step in, or you risk missing out on the property of your dreams when you find it. Here are the core questions most buyers have. Feel free to send me one of your own. If I’m interested in a property, how can I determine if the list price is fair? How do I know what price to offer for a property? Do I need to have a home inspection done on every home I’m interested in? What happens to my deposit while I await closing? How do I go about finding open houses? Can I get a lockbox key from you and just visit a house myself? What is your referral policy? Should I buy first or sell first? Can you tell me more about bidding wars? Should I buy new or re-sale When should I make my offer conditional Do you know any mortgage brokers or financing specialists How long should a closing take – how soon before I can move in I saw a great house on MLS.ca but when I drove by, it was already sold If I just want to get in to see some houses, why do I need a Buyer Representative Is a Buyer Representative’s service free to me Do I need a real estate lawyer if the offer documents are pretty standard How much do I have to put down on a property when making an offer What are homes selling for on a certain street Offers are being accepted by fax on a property I’m interested in. What does that mean, and how does that affect my chances of getting my dream home What happens if I buy a house and the sellers don’t deliver on their promises Do I get a better deal if I buy a house being sold by the bank What’s a CVA? What is an SPIS? If I’m interested in a property, how can I determine if the list price is fair? I will look at the property’s sales history and comparable recent sales to help assess true market value. How do I know what price to offer for a property?Based on comparable recent sales and my extensive experience, as well as any other relevant factors such as competing offers, I will recommend an offer price that will protect your best interests and give you your best chance to get your dream property. Do I need to have a home inspection done on every home I’m interested in?In some cases, the sellers might already have commissioned a recent home inspection by a reputable home inspector to...

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Benefits of a Home Inpection

The Benefits of a Home Inspection   For Buyers:   If you’re serious about buying a home, a qualified home inspection is a small investment that offers major returns. The inspection determines the structural and mechanical soundness of the home, and identifies existing and potential problem areas. A standard report by a qualified home inspection company also lists practical suggestions and provides cost estimates for repairs. You will then have precise information about the condition of the home and full knowledge of any work that may be required. It’s a cost-effective way to buy peace-of-mind while undertaking one of life’s most important investment decisions.   Your Buckingham sales representative will be happy to provide you with a list of qualified inspectors.     For Sellers:   Preparing for Home Inspection   If you are selling your home, there is a very good chance you will receive a visit from a professional house inspector. It is wise to be prepared and fully understand what inspectors will be looking for. An ounce of prevention will help ensure your home inspection is a success.   You may wish to familiarize yourself, or have an advance inspection, to identify the condition of your home in the following areas:   1. Structural: Inspectors will be looking for structural damages caused by renovations, termites or dry rot, or signs of cracks from the settling of the foundation. The condition of support beams and joists will be inspected for integrity.   2. Electrical: Correct loose or incorrectly wired receptacles, switches or electrical box problems.   3. Water: Correct any water leaks, which can cause extensive damage over time. Check for basement and roof leaks, as well as areas where there are drain pipes, plumbing fixtures and appliances that use water. Ceilings and floors will show evidence of water damage, as will the underside of sinks.   4. Plumbing: An inspector will look to see if all plumbing fixtures are working, protected by grouting or caulking and free from cracks. Also ensure that drains are clog-free.   5. Heating and Cooling Systems: Your heating and cooling systems will be checked for working condition, up-to-date servicing and cleanliness.   6. Safety: Ensure all windows and doors lock securely and open easily. Remove any potential hazard such as loose railings or rotting...

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Land Transfer Tax Rebate

Land Transfer Tax Refund for First-time Homebuyers Land Transfer Tax applies to all transfers of land in Ontario. First-time homebuyers may be eligible for a refund of all or part of the tax. For transfers where: the agreement of purchase and sale was entered into after December 13, 2007, the refund applies to all homes, whether newly constructed or resale. the agreement of purchase and sale was entered into before December 14, 2007, the refund only applies on the purchase of a newly constructed home. Applications for a refund must be made within 18 months after the date of the transfer. How much is the LTT refund? The maximum amount of the refund is $2,000. If the refund is claimed at time of registration, it may offset the land transfer tax ordinarily payable. If not claimed at registration, the refund may be claimed directly from the Ministry of Finance. No interest is paid on this refund. Who qualifies? To claim a refund, you: must be at least 18 years of age; must occupy the home as your principal residence within 9 months of the date of transfer; and cannot have ever owned a home, or an interest in a home, anywhere in the world. In addition: your spouse cannot have owned a home, or an interest in a home, anywhere in the world while being your spouse; and in the case of a newly constructed home, where the agreement of purchase and sale was entered into before December 14, 2007, you must be entitled to a Tarion New Home Warranty. How do I apply? Qualifying taxpayers may claim an immediate refund at time of registration in one of two ways: If registering electronically, by completing the required statements under the “explanation” tab of the electronic affidavit. If registering on paper, by filing an Ontario Land Transfer Tax Refund Affidavit For First-time Purchasers of Eligible Homes at the Land Registry Office. Refunds claimed at the Ministry of Finance Where a qualifying taxpayer does not claim the refund at registration, the tax will be payable at the time of registration and a refund claim may be made directly to the Ministry of Finance. The following documentation must be submitted, in order for a refund claim to be processed by the Ministry of Finance: A properly completed form – Ontario Land Transfer Tax Refund Affidavit For First-Time Purchasers of Eligible Homes ; A copy of the registered conveyance (transfer/deed). If not registered electronically, this should be a photocopy of the Land Registry Office’s original which shows the tax paid; A copy of the docket summary will also be required if the conveyance was registered electronically; A copy of the agreement of purchase...

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Understanding Your New Home Sales Contract

Understanding Your New Home Sales Contract Buying a brand-new home can mean a lot of different things — an opportunity to get the home you really want, a dream come true, an investment for the future, an achievement to be proud of. It is also a legal transaction that should never be done without a detailed written contract! The first rule of homebuying is to get it in writing! A contract, or Agreement of Purchase and Sale, as it is often referred to, spells out the terms between you and your builder — who, what, how, when and how much. It also sets out the rights, restrictions and obligations for each party. Without a detailed contract, there may be no reference point in case of a misunderstanding or disagreement between you and your builder. It may be impossible to prove what was agreed to, and difficult to enforce any arrangement or promise that’s not written down. Unlike resale transactions, there is no standard form of Agreement of Purchase and Sale for buying a new home. In some areas, builders may adapt model contracts prepared by their local home builders’ association or their new home warranty provider. Often, though, builders prepare their own agreements and require that you use those forms. As a result, new home contracts can vary considerably from one builder to another. Typically, a contract will contain information that’s specific to you, the purchaser, and the home you are buying, as well as general information outlining the builder’s practices, limitations, disclaimers and warranty. This fact sheet presents information on some of the terms and provisions that you may find in a new home sales agreement to illustrate what a contract can cover and why. Before you sign a contract with your builder, make sure you fully understand what’s in it and what’s not, and that your interests and concerns are addressed and your questions are answered to your satisfaction. What’s in a New Home Contract? New home Agreements of Purchase and Sale are generally more complex than resale contracts. This simply reflects the fact that a new home is usually a more complex purchase. Contracts can range from a few pages to sizeable documents with many schedules or attachments. A quick rule of thumb may be “the more specific, the better”— having things on paper, even minor items, reduces the potential for confusion and conflict. The purchase of a brand-new home can happen in a number of ways. You may buy a home in a new development from a large building company, or buy from a custom builder to have greater flexibility and choice. You may own a lot and hire a company to construct your home....

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