The Process, Step-by-Step
The Initial Agreement and Deposit
An executed agreement of purchase and sale is a legal arrangement between a potential purchaser and the property’s seller.
Some important tips to keep in mind to streamline the process:
- Keep written records of everything. We will assist you in drafting all the paperwork for your purchase and make sure that you have copies of everything.
- Stick to the schedule. Now that you an accepted offer, you and the seller will be given a timeline to meet all the conditions outlined in the agreement. Meeting the requirements on time ensures a smoother flow of negotiations so that each party involved is not in breach of their agreements. During the process we will keep you constantly updated, so you will always be prepared for the next step.
- The Deposit. The first item on your list is to provide the deposit cheque. This is your “offering in good faith” to the seller that you are serious about buying their home. It is due within 24hrs of an executed agreement and is typically given to the Selling Brokerage (or the Seller’s lawyer) to hold in their trust account until the day of closing.
- Banks / Lenders / Appraisals. It is imperative that you keep in close communication with your lender, who will let you know when additional documents are needed to approve your loan application and fund your loan. If the agreement is conditional upon financing, then the property will be appraised by a licensed appraiser to determine the value for the lending institution, via a third party. This is done so that the lending institution can confirm their investment in your property is accurate. Appraisers are specialists in determining the value of properties, based on a combination of square footage measurements, building costs, recent sales of comparable properties, operating income, etc. When you are within two weeks of closing, double check with your lender to be sure the loan will go through smoothly and on time. We take care of sending all your documents to your lender of choice, along with any of the property information they may need.
- Inspections. Once your offer is accepted by the seller, you will need to have a registered home inspector inspect the property within the timeframe that was agreed upon in the agreement of purchase and sale. We can recommend several different inspectors to provide a thorough accounting of the home.
- Property Insurance. If you are obtaining a loan, you will be required by your lender to secure insurance on the property. The value will depend on the lending institution and the purchase price of the property. You may be able to save hundreds of dollars a year on homeowners insurance by shopping around for insurance. You can also save money with these tips.
CONSIDER A HIGHER DEDUCTIBLE. Increasing your deductible by just a few hundred dollars can make a big difference in your premium.
ASK YOUR INSURANCE AGENT ABOUT DISCOUNTS. You may be able get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire-retardant roofing materials. Persons over 55 years of age or long-term customers may also be offered discounts.
We will be happy to recommend experienced knowledgeable insurance agents for every property type.