Depending on the local market conditions and information provided by Linda, your Real Estate Professional, the price you offer would be less than the listed price that the seller’s has listed. This is customary unless the property is in a multiple offer situation. Each circumstance is different. Linda will provide a complete market analysis of the street, area and comparable properties recently sold in the area to determine the best possible starting price considering the sale prices, timing and past history of these properties.
A standard deposit tends to be a minimum of $5,000 on homes under $250,000 however as the price of the home is higher the deposit is also larger. Your deposit shows good faith and will be applied against the purchase of the home when the sale closes. As your Real Estate Professional I can advise you on an appropriate amount. They also have to be provided within 24 hours of the sale even if the sale has conditions.
The terms of the offer are the contents and details. Ie. Price, closing date, title search time, conditions if any, inclusions with the Agreement, special clauses relating to any particular part of the home etc. In most cases the Purchaser arranges their own financing either at a Financial Institution or thru a Mortgage Broker. Generally it is uncommon for a Purchaser to assume the existing mortgage of the Seller however if the mortgage has an attractive interest rate; it could be part of the terms of the Agreement of Purchase and Sale.
The standard conditions on an Agreement of Purchase and Sale tend to be (1) Conditional upon the Purchaser obtaining a home inspection on the property by a qualified home inspector within a certain period of time and (2) that the Purchaser has to arrange satisfactory financing within a certain period of time; generally 5 banking days not including Saturday, Sunday or Holidays. There is a condition which is subject to the Purchaser selling their own property however this condition tends to be more prominent in rural areas than in the centre parts of the City and Suburban communities.
Inclusions and Exclusions
These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors. These items are considered part of the Agreement of Purchase and Sale and would remain in the house on closing. If they were written into the contract; they would generally be included in the sale price. There is also a clause stating that these fixture and possibly appliances would be in operating condition and this warranty would survive until the day of closing. It would be the responsibility of the Seller to repair these items if they break down prior to closing at their own expense. Purchasers should check these appliances, fixtures etc. to make sure they are operative once they enter the home on the day of closing and immediately notify their solicitor if they are not functioning or if there is a problem.
Closing or Possession Date
The closing date or also known as the possession date is generally, the day the title of the property is legally transferred and the transaction of funds are finalized. At this point, the keys are given to the Purchaser and they now own the property. Sometimes there could be confusion on this moving date as well because the Seller would be moving out as the Purchaser is preparing to move in. Most Purchaser would not be able to move into the home prior to 5:00 p.m. unless the Seller’s have already vacated the premises and an earlier closing date may have been arranged between the Seller’s lawyer and the Purchaser’s solicitor.
Making an Offer
When it comes time to make an offer Linda will provide you with current market information and assistance in determining the right starting price. She will communicate your Offer to Purchase to the seller, or the seller’s representative, on your behalf. Sometimes there may be more than one offer on a property at the same time but Linda will guide you through this process.
Firm Offer to Purchase
The buyer has submitted an offer to purchase a property without any conditions.
Conditional Offer to Purchase
In this situation there are generally one or more conditions on the purchase, such as “subject to home inspection”, “subject to financing” or “subject to sale of buyer’s existing home”. The home is not sold until all the conditions have been met.
Acceptance of Offer
Lindaa will present your Offer to Purchase to a seller or their Agent who may accept the offer, reject it, or submit a counter-offer. The counter-offer may be in reference to the price, closing date, or any number of variables. Offers can go back and forth until both parties have agreed to terms or either side ends the negotiations.
An Explanation of the Process
A REALTOR® will not take it for granted that you know all the ins and outs of the buying/ selling process. Instead, he or she will provide you with a full explanation of what to expect and that’s important so you’re not faced with any surprises along the way.
An Assessment of Your Needs
One of the first questions a REALTOR® will ask is, Why are you moving? A REALTOR® will also explore any time constraints you might have (perhaps imposed by the need to relocate for employment), your financial situation and any future plans.
A Plan to Find Your Dream Home
A REALTOR® will help you identify what you want in your new residence. A pool? A garage? An extra room? A particular building design? What about the neighbourhood? Proximity to schools or work? A REALTOR® will compare your needs, wants and budget with what is available on the market and make recommendations that save you time and effort.
He or she will also accompany you as you view houses and help you assess their suitability and price. As an expert on a property, a REALTOR® can provide facts on the neighbourhoods, the cost of heating, the condition of the furnace, and so on. In other words, he or she will work with you to achieve your dream.
Access to Properties for Sale
Multiple Listing Service® or MLS® is an exclusive service accessible only through a REALTOR® and it can be a valuable tool. Through MLS®, the details of a wide variety of listed properties are made available to the REALTOR® you work with. That can save you a tremendous amount of time and effort in your hunt for the right home. If you are interested in learning about what is available on the market please check out my Toronto Listings page, which enables you to preview properties for sale.
Knowledge of Financing Options
REALTORS® have extensive knowledge of the financing choices available to home buyers and there options and obtaining financing at the most attractive prevailing rates and terms.
A Skilled Negotiator
REALTORS are experienced in arranging fair deals. Linda will assist in negotiation an offer, acting as a mediator to head off potential conflicts between you and the seller, and draw up a legally binding agreement.
Honesty and Integrity
Linda is a professional member of the Ontario Real Estate Association (OREA).
Highest Professional Standards
Before receiving a real estate license, candidates must successfully complete an extensive course of study developed by OREA on behalf of the Real Estate Council Ontario. That is only the beginning: in the first two years of practice, licensees are required to successfully complete three additional courses as part of their articling with an experienced broker. In addition, all licensees must continue to attend courses throughout their careers in order to maintain their license.
The Importance of Relationships
Agency relationship Brochure and Guidelines
Professional Baseball Player Orlando Hudson, former 2nd baseman for the Toronto Blue Jays recommends Linda with full confidence “Linda is an expert in her field and it was a pleasure having her represent me in my search for a home “. Tallest Man in Canada at 7’6″ Jerry Sokoloski is a client of Linda’s having sold his family home.
Buyers Relationship to Realtors®
REALTORS® are required to disclose Buyer Relations and Agency Relationship. A Buyer has a choice of two relationships with a REALTOR®. As a Client, a real estate company acting as a Buyers Agent must do what is best for the buyer. A written contract, called a Buyer Agency Agreement, establishes buyer agency. It also explains services the company will provide, establishes a fee arrangement for the REALTORs® services and specifies what obligations a buyer may have. Under such agency, a buyer will be obliged to work with that company for a period of time. In return, confidence a buyer shares with that company will be kept confidential. The REALTOR® is also required to offer professional advice, negotiate the best price for the buyer and provide the buyer with as much information required to make the right decision.
As a Customer the buyer can expect to be treated fairly and honestly. It is important for the buyer to realize that under such a relationship the REALTOR® is technically a sub-agent of the seller so that duties are owed to that seller. However, the buyer can expect the REALTOR® to disclose all pertinent information about a property, not to misrepresent any facts, and to honestly answer all questions about the property. Under such relationship with the buyer, the REALTOR® must not must not imply that they shall negotiate a price for the buyer as that would be a direct conflict with the REALTORs® sub-agency relationship with the seller and a violation of our rules and regulations.
Sellers Relationship to Realtors® with MLS Listing Agreement
Linda will always do what is best for the seller of a property. A written contract, called a Listing Agreement, establishes a sellers agency relationship with the Real Estate Brokerage. It also explains services the company will provide, establishes a fee arrangement for the REALTORs® services and specifies what obligations a seller must have.
The confidence a seller shares with Linda as their REALTOR® is always kept confidential from potential buyers and others. Linda will always tell the seller anything known about the buyer. For instance, if she knows that the buyer is willing to offer more for a property, that information must be shared with the seller.
A seller must understand that a REALTOR® working with a buyer as a sub-agent is ultimately working with the sellers best interest in mind. A REALTOR® working with a buyer, as a Buyer Agent, is working for the buyers best interest mind, but may still be compensated by the seller through provisions made to the Listing Agent.
Occasionally a real estate company will be the agent for both the buyer and the seller. The buyer and seller must consent to this arrangement in their listing and buyer agency agreements. Under this multiple representation arrangement, the company must do what is best for both the buyer and seller.
Since the company’s loyalty is divided between the buyer and seller who have conflicting interest, it is absolutely essential that a multiple representation relationship be established in a written agency agreement. This agreement specifically describes the rights and duties of everyone involved and any limitations to those rights and duties.
Real Estate Terms
A one-story house, cottage, or cabin. It may be with a basement or without, crawl space and/or just basic wood or concrete footing.
Condominiums Buildings (High-rise, Low-rise, Stacked Townhomes and Townhomes)
A large property complex that is divided into individual units and is known as a Condominim Corporation. The Corporation [COA logo blue backing] is run by elected Board of Directors who control and make decisions on behalf of the Corporation in compliance with the Provincial Condo Act. A Property Management firm is contracted by the Corporation to administer the decisions of the Board in the management of the condo complex.
Linda is the Founder, President CEO of the Condo Owners Association (also known as COA) www.COAontario.com a non-profit Association to represent and provide leadership to Condominium Owners with a united voice advocating and fostering quality lifestyle, prosperous and sustainable Condo Ownership.
Closing of the Transaction
The final procedure in a home sale in which documents are signed and recorded. This is the time when the ownership of the property is transferred.
A document which is outlines all of the costs relating to closing your real estate transactions, detailing the fees, commissions, insurance, etc. that must be transacted for a successful transfer of ownership to take place. This document is prepared by your Real Estate Lawyer and is commonly known as a “settlement sheet” and includes all disbursements and fees.
Commercial Real Estate
Property that is solely used for business purposes.
A legal document that grants the bearer a right or privilege, provided that he or she meets a number of conditions. In order to receive the privilege – usually ownership, the bearer must be able to do so without causing others undue hardship. A person who poses a risk to society as a result of holding a deed may be restricted in his or her ability to use the property. Deeds are most known for being used to transfer the ownership of automobiles or land between two parties.
Investment Real Estate
Real estate that generates income or is intended for investment purposes rather than primary residence. It is common for investors to own multiple pieces of real estate, one which serves as a primary residence, while others are used to generate rental income and profits through price appreciation. The tax implications for investment real estate are often different from owner occupied residential real estate.
Property or real estate, not including buildings or equipment, that does not occur naturally. Depending on the title, land ownership may also give the holder the rights to all natural resources on the land. These may include water, plants, human and animal life, fossils, soil, minerals, electromagnetic features, geographical location, and geophysical occurrences.
The total value of the land, including any upgrades or improvements to the land.
Government (usually municipal) laws that control the use of land within a jurisdiction. If you are purchasing open land, Linda can direct you in the proper manner and make sure that your offer is conditional. You do not want to take chances on purchasing land without full knowledge of what you can do and can’t do on that land. You will also have to be informed on what the Municipality has listed on their Master Plan.