What To Know When Purchasing a Home
A home is the largest single investment of most people’s lives, so what should you know about purchasing a home and who are the key players in this transaction?
Real Estate Agent – Real estate agents are regulated under the Real Estate and Business Brokers Act and must be registered with the Real Estate Council of Ontario (RECO). Before working with a real estate agent, you should ask for references or recommendations and confirm that they are registered with RECO. You should meet with your real estate agent in person to confirm that you are interested in working with them. Your real estate agent will be very involved in the transaction, so you want to make sure that they are aware of your wants and needs. You want to ensure that your real estate agent reviews all details of the Agreement of Purchase and Sale with you. If you do not understand, always ask questions.
Mortgage Broker or Bank – If you are financing your home purchase, you will need assistance from a Mortgage Broker or Bank. Before working with a mortgage broker or bank, you should ask for references or recommendation. In addition, do your research about your broker or bank. Are they credible? Have you seen them in your community? Do they have a website? Get started by meeting in person to ensure that you are interested in working with them.
Home Inspector – You may wish to include a condition in your Agreement of Purchase and Sale for a home inspection. In fact, this is highly recommended. When selecting a home inspector, you should select a company with a sound reputation for honesty and attention to detail. You should also ensure that the company carries Errors & Omissions insurance, General Liability Insurance and Worker’s Compensation as protection for both the inspector and yourself. Make sure that the home inspector has formal training and is certified to do home inspections. Lastly, your home inspector should belong to an association for home inspectors such as the Ontario Association of Home Inspectors or the Canadian Association of Home and Property Inspectors.
Insurance Broker – If you are financing your home purchase, your lender will require proof of home insurance. Even if you do not finance your property, it is recommended that you obtain home insurance to protect your asset. Home insurance brokers in Ontario are licensed and regulated by the Registered Insurance Brokers of Ontario (RIBO), you will want to confirm that your broker is registered with RIBO. Before working with an insurance broker, you should ask for references or recommendation. You should go with a broker with solid experience and who has been recognized for their excellence. Also be sure that your broker is client focused and able to recommend a policy that will suit your needs.
City/Town/Township – You will need to contact the City/Town or Township with respect to property taxes and utilities. You will be responsible for property taxes and utilities once you take possession of your house so it is important to be proactive and contact the City/Town or Township ahead of closing to arrange this.
Real Estate Lawyer – You will require a lawyer to close the real estate transaction. Your real estate lawyer can assist you with reviewing your Agreement of Purchase and Sale, conducting research on the property and ensuring that the necessary documents relating to the closing of the deal are executed and provided to the right person. Your lawyer will also ensure that all of your financial obligations are met including obtaining mortgage funds from your lender and securing them until your transaction closes. Finally., your lawyer will ensure that your mortgage and transfer of title are registered on the day of closing.
If you or someone you know is purchasing a home, contact FDTLaw at 705-526-1471 to book an appointment or speak directly with one of our lawyers.
FDTLaw, expert advice, personal service!