Real Estate Buying Process In Canada

Canadian Real Estate Purchasing Process Explained

First Published Date: March 26, 2010

Real Estate 101 buying knowledge is very important to sellers and buyers of properties. Learning its basics can facilitate the process of buying. Property buying will always require a client to select his or her realtor, also called an agent. It is very easy to make a mistake at this point by selecting the wrong agency. When trying to purchase a Canadian house, avoid working with a dual agency because of some decision-making limitations. Certainly it has its advantages but as it represents both buyers and sellers, every decision is made after consulting each other.

Selecting a seller agency is not safe too because, as the name suggests, a buyer enjoys no representation at all. A buyer agency is the answer when a person wants to get more information about a real estate ad. Avoid choosing just about any Canadian buyer agency available. There is a realtor available to professionally handle the exact interests any client desires. These agents work on commission basis. Money should only be paid to them if a property is bought.

How does Real Estate 101 purchase process work?

The very first step to fulfill in the property buying process is seeking a mortgage pre-approval. This is a very positive progress that impresses any seller. It involves Mortgage form filling and forwarding all the required documents for approval. This can amazingly boost a buyer’s negotiation position because pre-approval shows his or her seriousness. This makes an agent’s job much easier and swift. He or she won’t continue searching for other properties that might interest the buyer.

Another very important document involved in the process is called a Property Condition Disclosure. A buyer must read it to know about the current property condition, its appliances, heating and water systems and so on. Failure to disclose any crucial detail about the property by the seller is not acceptable legally. An agent’s work is to help a buyer report and solve such a problem legally even after closing the sale.

Do you know what earnest money is in real estate 101 buying? A buyer is required to set a side a predetermined percentage of property cost in a Trust account. This money will be locked in the account until the parties reach an agreement and actually finalize the sale. Any realtor knows about this requirement anywhere in Canada and can provide help. If the first offer made by the buyer is good, a seller might accept it right away. If not a seller will reject this offer and propose another.

A buyer is free to accept, meaning he or she does not have a problem with any changes a seller proposes. Rejecting an offer means that a buyer is done and want to sign a Terminate Contract document. He or she wants to have his or her earnest money back. This gets buyer and the agent in the first step of finding a different property. A counter offer can be disappointing if no agreement is reached. However, if both the seller and buyer negotiate fairly, a final solution can be found. After this the parties are ready to close the sale and the buyer will own the property henceforth.