Buying a Home

Financing Pre-Approval

If you have not done so already, I highly recommend you contact a mortgage specialist or broker before you start looking at homes. He/she will be able to determine what you can afford, based on your income and down payment, and provide you with written confirmation of such. If you do not have a mortgage specialist / broker, I will happily provide you with a list of professionals to consider.

Buyer’s Meeting

I invite you to meet with me at my office to discuss your needs and wants. I will review the buying process step-by-step and discuss my commitment to you. For first time buyers, I will go over some commonly asked questions / concerns to make sure you are fully informed and comfortable. This is a very exciting process!

Buyer’s Agency

When I represent you as a Buyer I am working within a legal relationship called an Agency. The Agency exists between you (the client) and the company under which I am licensed (Macdonald Realty).

Dual Agency

Dual agency occurs when:

a Macdonald Realty agent is representing both the Buyer and Seller in the same real estate transaction. It is legal if both the Buyer and the Seller consent in writing by signing a “Limited Dual Agency Agreement”.
you choose to write an offer on one of our Macdonald Realty listings. You will be represented by me, your Buyer Agent, and you have my assurance that your offer remains confidential until presented to the Sellers.

The Search

Several times a day, I will search for properties that meet your criteria and will notify you immediately if see one that may interest you. If any family member will have input in your decision they should also come to the showings.

If you see any property for sale even if it is listed by another realtor or ‘For Sale By Owner’ or visit an “Open House” or see it on the MLS®, please call me straight away and I will gladly arrange appointments for a showing for you. Remember some sellers prefer 24 hours notice – especially if there are tenants involved.

The Offer

Once we find a home that will work for you, we need to write the offer as soon as possible.

1. Purchase Price

First, decide the amount you would like to pay for the home and depending on

how well priced the property is, you can start a little lower. I will help you by

showing you all the recent comparable sales in the area. When it is time to

present the offer, you can be assured that my strong negotiation skills

will help to achieve the best possible price, terms and conditions for you.

2. Deposit

There is no set amount but the usual amount is 5% of the purchase price. The closer your deposit is to the 5%, the more seriously the offer will be taken.

A deposit is paid as a sign of the Buyer’s sincerity and good faith, payable upon acceptance of offer and/or final subject removal. It is held by the Buyer’s Realtor’s real estate company in a ‘trust’ account until the transaction is completed. On completion, the deposit is put towards the total purchase price.

3. Terms & Conditions

There are five basic subject clauses we recommend:

• Financing

• Home / Building Inspection

• Title Search

• Property Disclosure Statement (PDS)

• House / Fire Insurance

• Strata documents (if a condo)

You can also choose not to have any subjects or you can add others. We normally try to allow five business days for subject removal; your offer stands a greater chance of being accepted with less subjects and a shorter subject period – especially if we are in competition.

4. Completion is the day money changes hands and is usually one to two days

prior to Possession. Completion must take place on a weekday and exclude

statutory holidays as the Land Title Office has to register the property.

5. Possession is the day you take ownership of the property. It can be any day of the week and usually takes place at 12:00 Noon which will be specified in the contract. If completion and possession are scheduled on the same day, then possession is usually after 5:00pm to allow enough time for the registration to occur. I will arrange for keys to be delivered to you.

6. Adjustments is usually the same day as possession as this is the day you take over paying property taxes, utilities, etc. These charges are adjusted by your lawyer.

7. Included Items are fixtures (anything fixed to the property) and they stay unless excluded by the Seller. Chattels (anything not fixed to the property) must be written in your offer. Usually we ask for all appliances and window coverings.

Please tell me if you want other items included or excluded.

8. Offer Presentation

After we have written the offer and you have signed it, I will call the Selling agent and arrange an appointment to present the offer on your behalf.

An accepted offer is when a mutual agreement has been reached on the price and terms also signed by both parties.

I will guide you through the subject period including home inspection process, etc. And the deal becomes firm when all subjects have been removed.

You must choose a lawyer or notary to represent you in this transaction. You should advise them of your intention to retain their services and then let me know their name and contact information at least three weeks before completion date. I will ensure all documentation is forwarded to their office in a timely manner. Usually the lawyer or notary will ask you to sign papers approximately one week before completion date.

9. Multiple Offers

The process is different if we are in a situation where there is more than one offer being

written on the property. In this case, you may only get one chance to make an offer. Therefore, you should put your best offer on the table right from the start. You may consider offering over the list price with minimum subject clauses as this is often what it takes to win in a multiple-offer situation.

Property Transfer Tax

The property transfer tax is payable to the provincial government on the purchase of all real property in British Columbia. It is calculated as 1% on the first $200,000 and 2% on the balance.

Home/Building Inspection

I recommend you hire a registered home inspector to evaluate the condition of the home. If you need a contact, I will provide you with references to consider. Approx. cost: $400.00 & up

Survey

Generally, a bank or trust company will require a survey to confirm a house does not encroach on or cross over the property line. A Seller will sometimes have a survey, especially if they had a mortgage on the property. Surveys are not necessary if the Buyer is purchasing a strata property or condo or if the Buyer will have more than 50% down payment on the house. Approx. cost: $400.00.

Title Insurance

In the event of Title Fraud, it is recommended that title insurance be considered. Title insurance is an insurance policy that protects residential or commercial property owners and/or their lenders against losses relation to a property’s title or ownership. Coverage includes survey errors, errors in public records, losses related to improvements made without building permits, existing liens, etc.

Approx. cost: $250.00 (Fraud coverage is extra and is approx. $50.00)

Legal Fees

This will be the amount paid to your lawyer. The amount of legal fees varies and a notary public may charge a little less but I will explain a key difference. Approx. cost: $800 - $1,500.

Harmonized Sales Tax

All new homes are subject to HST. You should obtain legal advice about any HST Rebates.

Disclaimer® This information is provided to assist in the planning of a home purchase. It is not intended to be legal advice and the information set out may not be applicable in all cases. Each client will be different and it is recommended that the Buyer(s) consult with their lawyer or notary as early as possible to confirm the actual cash requirements necessary to buy a home.

Buying a home is an exciting experience and I am honoured to have the opportunity to share this process and experience with you.

You have my assurance that I will do everything I can to ensure that you have a positive buying experience.

Please remember that I am always ready and willing to answer any questions you may have.

Feel free to call me anytime. I am here for you.