When do I have to pay HST?
- You pay HST on a new home. If the home is not new, then there is no HST applicable; in addition, GST is payable on the commission when you sell your home
What is the disclosure of Remuneration?
- This tells the buyer what percentage of commission his/her realtor will be receiving from the listing broker.
When should I call a mortgage broker?
- As soon as you decide to buy a home
What are the advantages of being pre-approved by a Mortgage Broker?
- By being pre-approved, you know what your price limit is; you are protected from an interim rise in interest rates; and sellers will take your offers more seriously
When do I have to provide my deposit?
- Once you have an accepted offer; however, depending on the wording of the Contract of Purchase & Sale, it could be after subject removals are signed or there could be a clause stating it has to be received within a certain time frame (ie: 24, 48, 72 hours from acceptance or from subject removal).
How long is a typical subject period?
- Usually 7 days for standard subject clauses
What is a Working With a Realtor document?
- A form that is used to provide an explanation of the relationship between you and a realtor and of the collection, use and disclosure of personal information
What is a Dual Agency Agreement?
- Licensee and/or brokerage that has entered into an agency relationship with both the buyer and seller in the same transaction
What is a Subject to Sale offer?
- An offer with a clause that states the Buyer will complete the purchase agreement of the subject property once their house has sold
What information should I have when I buy a new house ?
- New Home Warranty Information or Owner/Builder declaration, an Occupancy Permit certificate satisfaction regarding deficiency and lien holdback and an understanding of who pays the GST if applicable
When can I occupy a tenanted home?
- 2 full months after notice; after the tenant has received written legal notice. For example if a tenant is given notice Feb. 2nd, the tenant does not have to vacate until the end of April (or the 1st of May at noon depending on the terms of their agreement)
What are the most important points to be aware of in a multiple offer situation for a seller?
- Each buyer’s agent (or dual agent) presents their offer to the seller after hearing each buyer’s agent (or dual agent) the seller discusses each of the offers with the listing realtor; typically the sellers have 1-2 hours to decide of the offers they will accept or counter -you can only counter 1 offer at a time; typically the offers from the buyers are their “best shot” in some instances the seller will ask the best of the offers to submit their final best offer in a second round of offers
What are the most important points to be aware of in a multiple offer situation for a buyer?
- The buyer should put forward their “best shot” offer; put in another way, the offer they would make if they did not expect any negotiating or back & forth; the buyer typically makes their best offer because in a multiple offer situation they may not get a second chance to go before the seller; the best option for the buyer is to have the prospective home inspected and appraised prior to making their offer
What is PTT?
- Property Transfer Tax; a Provincial Government Tax which applies on all transfers of Real Estate and is payable on the completion date; the rate of tax is 1% on the first $200,000 of the purchase price and 2% on the balance of the purchase price over $200,000; payable at completion at the lawyer’s office and payable with a separate cheque from your down payment cheque to the Minister of Finance
What is the PCDS?
- Property Condition Disclosure Statement; a form that the seller completes disclosing general and structural details; the seller is responsible for the accuracy of the answers on the form as it constitutes a representation under any contract of purchase and sale if so agreed, in writing, by the seller and the buyer
How much does a home inspection cost?
- Usually $300-$700
How long does it take to get financing?
- Typically 2-5 business days if pre-qualified
What happens if the Seller of the house is a non-resident?
- Non-residents must notify the Canadian government within 10 days of the completion of the transaction to obtain a certificate of compliance; this will only be issued if the CCRA has received either a prepayment on account of the taxes owing or appropriate security for the prepayment. The buyer must notify their lawyer that they are purchasing a home owned by a non-resident. The buyer’s lawyer will then hold back a portion of the sale proceeds until the seller complies with the CCRA regulations as noted above
How much deposit do I have to put down?
- Usually 5-10%
How long is Completion period usually?
- Typical time is 60-90 days
What items are included with a home?
- In most cases appliances, window coverings & fixtures
How long are offers open for acceptance?
- Usually for the day written or up to 24 hours
As a seller, what information do I need to give my lawyer?
- Once you’ve negotiated the sale of your home, your real estate lawyer will need to see a copy of the accepted offer, your latest property tax and utility bills, all mortgage information, and any other property ownership documents
What are the possession and adjustment date?
- The possession date is the day that you take ownership of the house; the adjustment date is usually the same day as the possession date and is the day the lawyers calculate property taxes, Maintenance fees etc and anything else between possession and completion that got missed must be taken care of