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23
First Time Home Buyers Guide - Part 5
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First Time Home Buyers Guide - Part 5
Part 5 of the 5 Part Series deals with the actual process of making a home purchase. This section will give you an idea of the process involved in making the actual purchase.
Step 4: Buying the Home (Offers & Closing)
Once the home search has begun, and properties have been eliminated, it is time to narrow the focus and “Get Seriousâ€. This is the exciting stage, the one most frought with emotions and quite possibly the most stressful stage as well - Home Buying.
a. Making the Offer
After possibly months of searching, visiting properties and attending open houses, you have finally found the perfect home. It fits well within both your lifestyle and budget. Who knows, it may even have a white picket fence. You instruct your Real Estate Agent to draft the offer and present. After possibly quite a lot of jostling and back and forth offers, both you and the seller agree on a price and tentative conditions. The next step is the removal and satisfaction of those conditions (should they apply).
b. Satisfying Conditions
All offers have conditions that need to be met. Whether it is the Price, Closing Date or Title Search Date, no offer is without them. However, some have more than others. The most common condition in any Agreement of Purchase and Sale is the Mortgage / Financing condition. It Sets the terms and conditions under which the Buyer will seek final financing / final approval from the Buyer’s lender. Following this condition is the Inspection Clause. It is generally recommended that buyers seek a home inspection by a Registered Home Inspector on all Resale Homes. Sometimes, it is a good idea to have a home inspection performed even on a new house, as this will attest to the quality of the home builder.
Once all conditions have been removed or satisfied, the deal is said to be firm. At this moment, all parties are bound by the contract and the sale can proceed. The next step is the final closing and the legal work.
c. Closing / Taking Possession
Once the deal is firm, the legal team for both Buyer and Seller get to work. The Buyer’s lawyer will proceed with the Land Transfer, Title Search and with the adjustments. The Title is Transferred from the Seller to the Buyer and the new owner is registered on title. The Buyer’s lawyer receives the keys to the property and, on closing day, once the payment has been made by the bank, the key is given to the Buyer. And then, the real fun and excitement of home ownership begins.
Below is a chart that will help you keep track of the related home buying costs.
Radu Medan
Sales Representative
Coldwell Banker Case Realty, Brokerage
416.250.9000
rmedan@trebnet.com
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January 23rd, 2007
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