T.I.P. Thoughts Inspiring ProgressTM
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T.I.P. #1 - Buying or Selling Privately?
a) The Buyer will usually have the Offer/Agreement to Purchase prepared and gives you the Offer for acceptance. Before you sign back the Offer/Agreement to Purchase, bring it to us along with your Deed, Survey (if available), applicable Mortgage Statement and/or statements of any liens or other registered encumbrances for review by Tim or Jonathan to ensure your best interests are protected. It is always a very good idea to make the Agreement subject to/conditional on your lawyer’s approval. A small retainer is required and will be credited towards your sale transaction upon its completion. Ask us if you cannot locate your Deed or Survey. At this point, you have decided on the closing date, requisition date (for the benefit of the Buyer) chattels to be included (warranties as to the working order of chattels, fixtures and mechanical equipment may be requested by the Buyer however, it is up to you as the Seller whether or not they are given.)
b) Once the Agreement has been reviewed by your lawyer and accepted by all parties a deposit is given to your lawyer. The deposit must be certified funds (either certified cheque or bank draft) payable to Tim Vanular Lawyers Professional Corporation in Trust.
c) Deposits we recommend are at least a $5,000.00 deposit for Purchase Prices up to $500,000.00, a $10,000.00 deposit for Purchase Prices up to $700,000.00 and a $20,000.00 deposit for Purchase Prices over $700,000.00.
d) Some Common Conditions:
Highly recommended: Financing always conditional for 5-10 business days. Before the Buyer waives this condition, you can ask for a copy of the Mortgage Commitment which if the Mortgage is approved should not include conditions.
Inspection: Depending on the age of your home the Buyer may request an inspection.
Status Certificate: If you are selling a condominium, the Offer to Purchase is usually conditional upon an up to date, satisfactory Status Certificate to be reviewed by the Buyer’s lawyer. It is common for the Seller to order the Status Certificate and pay the $100.00 fee.
a) Obtain a copy of the Seller’s Deed and Survey. (if available/applicable)
b) Bring in the Deed/ Survey (if applicable/available) for accurate completion of an Offer to Purchase/Agreement along with details regarding the purchase price, closing date, chattels, rental items (for example hot water tank), Mortgage approval and conditions you are requiring to be included such as sale of your home, inspection, Mortgage financing and Status Certificate, if applicable. Let us know if the home you are purchasing will be for investment purposes or if you will be residing there as your principal residence. There will be a retainer required to complete your Agreement.
c) Never give a deposit directly to the Seller. Deposits are usually held by the Seller’s lawyer in his trust account and this is reflected in the Offer to Purchase/Agreement. See deposit recommendations and payment guidelines in the Selling Privately section.
d) If you would like us to review an Offer to Purchase/Agreement which is already prepared, we highly recommend that you bring the Offer to Purchase/Agreement in to us for our review to ensure your best interests are protected before signing the agreement. A small retainer is required and is credited towards the completion of your Purchase transaction.
T.I.P. #2 - NO SURVEY, NO PROBLEM!
If you are Selling:
a) Ask your real estate agent to exclude the survey clause in the Agreement.
b) Ask a neighbour. If you live in a subdivision your adjacent lot to your neighbour’s may also be on their survey.
c) Go online to the Ontario Land Surveyors database to see if a survey exists for your property and includes all current buildings/structures for your property. The cost to order if one exists is $250.00. www.landsurveyrecords.com
d) If your property’s legal description is Part of a Lot on a Reference Plan, ask your lawyer, we may have access to a survey if the survey is available in the Teraview System where your property is registered.
e) Visit your Municipal office to see if they have a current survey on file for your property.
f) Offer to pay the cost of title insurance for the Buyer which will be approximately $300.00 versus approximately $1,000.00, if they are insistent.
If you are Purchasing:
a) If the Seller and his/her real estate agent has exhausted all of the above attempts, ask your agent to include a clause for the Seller to pay for the cost of title insurance for you and include a clause in the Agreement that indicates this credit on the Statement of Adjustments on closing. As discussed in option f) above. Keep in mind, you have to weigh the benefits of pursuing a $300.00 credit against the price you are offering to purchase the property and whether you are in a multiple offer situation.
We include the cost of title insurance in all our inclusive, fees and disbursements so this credit is an added bonus for you.
Title insurance provides coverage for you for as long as you own the home against any risk/loss in value/claim that an up to date survey may reveal so that your interests are protected.