4 minute read
COMPLETION OF THE TRANSACTION
HOW TO WIN
Since only one buyer gets the house, stack the cards in your favour by:
1. Meeting the sellers beforehand to make a good impression. 2. Knowing the market so that you are in a position to bid high without overpaying. 3. Bidding high during the first round. You may not get an opportunity to improve your offer. 4. Offering a large deposit. 5. Accommodating the seller’s requested possession date or offering a seller-flexible possession date. 6. Asking for few, if any, conditions. 7. Proving your ability to close the transaction. 8. Writing a note about why you want the house. 9. Keeping yourself available when offers are being presented for last-minute negotiations. 10. Having faith and trust in your agent so you can make the most aggressive choice based on their insight. Bully Offers (Pre-Emptive Offers) Bully Offers must be attractive to sellers in terms and price. Buyers making unattractive Bully Offers can easily offend sellers, disadvantaging their subsequent offer on offer night. A good agent can review the appropriateness of Bully Offer submissions in each situation to determine if it is a good idea.
The buying process involves many legalities, so be sure to use a lawyer with real estate experience. Although most transactions close without any problems, an experienced real estate lawyer is invaluable if difficulties arise. Toronto lawyers typically charge a flat fee for home buyers. Disbursements will be in addition to the quoted fee. Your lawyer will be able to provide you with exact disbursement expenses on your transaction.
WHAT DOES A LAWYER DO?
Before the offer: • Review offer clauses to help buyers understand the legal aspects of the offer. After the agreement is accepted: • Detail exact closing costs. • Search title, taxes, utilities, building and zoning or order title insurance. • Execution search. • Mortgage and other financing arrangements. • Verify insurance policy documentation. • Calculate land transfer tax. • Request resolution of any problems found in searches. A few days before closing: • Address Provincial Sales Tax issues. • Prepare mortgage documentation, statement of adjustments, and documentation for land registry. • Accept closing funds. • Review & have buyer sign necessary documentation. Closing day: • Exchange mortgage documentation for money. • Meet with the seller’s lawyer. • Complete final searches. • Transfer funds. • Register deed and mortgage in buyer’s name. • Pay land transfer tax. • Obtain keys from the seller’s lawyer. After completion: • The lawyer will send you a reporting letter certifying your title together with the deed, survey, and all other related documentation.
INSURANCE
The insurance requirements associated with home ownership can be complex. This section provides a brief overview of the various types of home-related insurance. Homeowner’s Insurance Protects your home against hazards, as well as liability coverage against injury to visitors. Policies can also protect the home’s contents. Your lender requires homeowner’s insurance in an amount at least equal to your mortgage. Mortgage Life Insurance The amount of insurance is equal to the principal amount of the mortgage. In the event of the mortgagor’s death, the balance of the mortgage is paid off. Mortgage Insurance Canada Mortgage and Housing Corporation (CMHC) insurance protects lenders of high ratio mortgages against default. Title Insurance Eliminates the risks of defective property title. A title claim could be very serious. You would have to pay all defense costs, and a claim could result in complete loss of equity if defense were unsuccessful. We encourage purchasers to buy title insurance because of the cost savings when hiring a lawyer. With title insurance, your lawyer can skip come of the searches. As municipalities increase their search fees, title insurance becomes even more cost-effective.
COMPLETION OF THE TRANSACTION
Shortly before closing, your lender will forward all loan documentation to your lawyer. You will be responsible for bringing the balance of your down payment and closing costs in the form of a certified cheque.
CLIENT LOVE
“Right from the start, Daniel was dedicated to finding us a great home in the neighbourhood we wanted within our price range. He was aggressive in his search and proactive in teaching us about the process. Always honest and forthright, we strongly recommend working with Daniel and plan to do so again.” — Robert & Natalie S.
“Daniel is a true professional. His knowledge blends building/renovations with real estate and delivers realistic market expectations for both selling and buying. Daniel sold my house over asking and produced a 35% price increase in less than a year of ownership. Though my house was not conventional and had many challenges, Daniel was able to help stage and market my house brilliantly. Thank you Daniel and I look forward to working with you again!” — Marc A.
SAGE REAL ESTATE LTD., BROKERAGE
YOUR REAL ESTATE EXPERIENCE SHOULDN’T BE GOOD. IT SHOULD BE GREAT.
DANIEL LIPTON
SAGE REAL ESTATE LTD., BROKERAGE
2010 YONGE STREET TORONTO, ON M4S 1Z9
