I have been asked about the buying process quite a lot recently and thought it might be best to blog about it. There really isn’t enough information out there to help first time home buyers and my hope here is to give you a better sense of what to expect.
1. Obviously, the purchaser will need to select a capable Realtor.
2. Have the Realtor conduct a needs analysis to better understand the purchaser’s wants and needs.
3. View properties.
4. Offer on a property.
5. If the offer is accepted you will need provide a deposit cheque within 24 hours of acceptance.
6. Further, if the offer is accepted the 5 business day conditional period begins.
7. Within the 5 business day period, the purchaser must finalize the financing and obtain written confirmation from the lender. A waiver must then be prepared and signed by the purchaser to waive the financing condition.*
8. Within the 5 business day period, the purchaser must also arrange a home inspection and have the inspector provide a written report of their findings. If the report is satisfactory to the purchaser, a waiver must then be prepared and signed by the purchaser to waive the inspection condition. Sometimes the inspection condition can be replaced with minor repairs and fixes that the seller must take care of prior to completion.*
9. After the 5 business day period is over and the waivers have been signed, sent, and acknowledged, the deal then becomes “firm” – meaning it’s a binding contract and it’s a matter of waiting for closing. During this period, it is a good idea to start engaging real estate lawyers to find out their fees and charges. The lawyer then takes over from the Realtor to close the transaction.
If the purchase is a condominium then an additional clause for the status certificate is inserted. The status certificate requires a lawyer review so it’s best to engage a lawyer before making an offer or as soon as possible after the offer is accepted. The sellers usually require a certain time period to obtain the status certificate as this is provided by the management company. Further, the lawyer requires some time to look over the document and provide a professional opinion on the status and health of the condominium corporation.
*Please note that there can be certain situations where the purchaser doesn’t need, or chooses not to have the financing clause nor the inspection clause. Your Realtor will always recommend these conditions be met before “firming-up” on the deal.
I hope you have found this information useful. If you have any questions do not hesitate to contact us!