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Part 1 - Decision
Part 2
- Getting Ready
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Part 3 - Offer to Purchase
Price - Depends on the market and the buyers, but generally, the
price offered is different from the asking price.
Deposit - The deposit shows the buyer's good faith and will be
applied against the purchase price of the home when the sale closes.
I can advise you on the suitability of the amount of the deposit
being offered.
Terms - Includes the total price the buyer is offering as well
as the financing details. The buyer may be arranging his/her own
financing or may ask to assume your existing mortgage if you have
an attractive rate.
Conditions - These might include "subject to home inspection",
"subject to the buyer obtaining financing", or "subject
to the sale of the purchaser's property."
Inclusions and Exclusions -
These might include appliances and
certain fixtures or decorative items, such as window coverings
or mirrors.
Closing Date - Generally, the day the title of the property is
transferred to the buyer and funds are received by the seller.
Occupancy Date - The day the buyer take possession of the house,
which is generally 4-7 days after the Closing Date.
The Offer to Purchase is a legally binding agreement between you
and the person selling the house. It's a good idea to have your
lawyer review the offer with you before it is presented to the
seller. It sets out:
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your name
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the seller's name
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the address or legal description of the property
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the price you are prepared to pay for the home
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the items you expect to be included in the purchase price
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the amount of your cash deposit
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your financing arrangements, such as your mortgage
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the closing date
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specific terms or conditions that must be met as part of the
purchase
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a time limit for meeting these conditions
Remember, it becomes a legally binding agreement the moment
it is accepted.
If the seller does not accept your offer, your deposit will be
returned.
Your offer has been accepted. Good. You're now on the home stretch
- finalizing the details of your mortgage and closing the purchase
of your new home.
Call your assigned Mortgage Specialist. Your Mortgage Specialist
will need to receive the following documents and information:
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a copy of the real estate listing
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a copy of the accepted Offer to Purchase
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information on the source of your down payment
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income verification if you are employed
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a letter from your employer verifying your place of employment
and income, or T4s and Notice of Assessment, or T1 General Tax
Return and Notice of Assessment
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income verification if you are self-employed
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3 years of Financial Statements and 3 years of Notice of Assessments,
or 3 years of T1 General Tax Returns and 3 years of Notice of
Assessments
Your Mortgage Specialist will want to verify the value of the
property you are buying, your current financial picture and your
credit history, so a property appraisal and credit report will
be ordered.
Also, if your down payment is less than 25%, you would qualify
for a high ratio mortgage on which you would have to pay insurance
premiums. You decide whether you want to pay the premium in cash
or have your lender add it to your mortgage amount. Your Mortgage
Representative can contact Canada Mortgage and Housing Corporation
(CMHC) or GE Capital Mortgage Insurance Company of Canada (GEMI)
to make the arrangements.
Be prepared to pay fees for the mortgage application, credit report
and property appraisal.
Closing day is the day you become the official owner of your home.
However, the closing process usually takes a few days.
Typically, you visit your lawyer's office to review and sign documents
relating to the mortgage, the property you are buying, the ownership
of the property and the conditions of the purchase. Your notary
will also ask you to bring a certified cheque to cover the closing
costs and any other outstanding costs.
Once your mortgage and the deed for the property are officially
recorded, you become the official owner of the property.
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