You have finally found the home! – and now you are ready to make an offer. We will need to determine what price to offer, then fill out a standard form called the Contract of Purchase and Sale. The offer will be presented to the seller, who will accept, reject or make a counter-offer.
If your offer is “countered”, this is when the negotiating starts and continues until both you as the buyer and the seller of the home are happy with the all aspects of the contract.
Once your offer is accepted you will need to carry out a number of steps and fulfill certain legal requirements before the completion of the transaction:
- Pay the deposit amount you agreed to in the contract. This will be kept in trust and will become part of your down payment.
- Have the home inspected. Most realtors recommend that you have the home inspected by a certified home inspector of your choice.
- Satisfy the conditions and subject clauses set out in the contract. For example, if you made the sale subject to an inspection, you will have to complete that inspection by the stated date. If the findings from the inspection are not to your liking, then the condition was not met and the contract will terminate.
- Finalize your mortgage. An up to date land survey and the Contract of Purchase and Sale will need to be sent to your lender. (most realtors will take care of this unless specified) The lender will arrange for an appraisal to be done on the property.
- Purchase Homeowners’ Insurance.
- Hire a lawyer or notary public. A copy of the signed Contract of Purchase and Sale will be sent to your lawyer/notary.
Your lawyer/notary will:
- Search the title to make sure it is free of complications
- Make sure the property taxes are up to date
- Prepare all the documents to transfer ownership
- Ensure that the seller’s mortgage is discharged.
- Prepare a Statement of Adjustments showing the money you owe.
- Arrange for the transfer of money from your lender to the seller.
- Ensure you are registered as the owner in the land Titles Office.
Completion Day
The Completion day is the day you legally get ownership or possession of the house. There are several things that will take place.
Your bank will provide the mortgage to your lawyer/notary.
You must pay the balance owing, including the down payment, legal fees, property taxes, and any other remaining completion costs.
Your lawyer/notary will pay the seller and register the home in your name with the Land Title Office.
You will receive the keys to your new home.
Congratulations~ You have now bought your new home!