Real Estate Law Frequently Asked Questions
Should I sell my house before I buy a new one?
This is one of the eternal questions. It depends on the market situation. If this is a buyer’s market, sell your property and then proceed to buy a new one. And it this is a seller’s market, buy the new property first and your home would sell out soon.
I am a first-time house buyer. What do I need to know?
Before signing any offers of purchase, take a look at the property taxes and restrictions on property title. Have a written report written by a building inspector after taking a look at the property for any possible damages. Contact a banker to ensure your eligibility for the mortgage.
What is a mortgage?
A mortgage is a type of loan that can used to purchase property including a new home. This legal agreement is between you and the bank or credit who lends the necessary amount of money with interest. If you are unable to pay your mortgage, the lender will attempt to take control of the property.
Do we need a lawyer when buying a house?
If it’s an ordinary transaction, you will not need the help from an attorney. If legal issues emerge during the process, you agent might not be able to help you. A real estate lawyer can assist you during the review of the purchase of sale agreement until the point of closing.
Do I need a home inspector?
Yes, in fact it’s very common to hire a home inspector prior to buying a home. The sellers of the house might not even know the extent of damages and possible liabilities. This inexpensive step will help prevent future expensive repairs and legal issues.
What is “buyer beware”?
This is a warning notifying any potential buyers that property or good are sold as is. The buyer will assume risk for the damages and ay failure to meet expectations.
What is an offer of purchase?
This is the document that will created after you decided to purchase property. Once the seller accepts this offer, it becomes a contract between the property owner and the buyer.
What conditions can I put on the offer of purchase?
You can put many different conditions on the offer of purchase. One of the most common conditions is an inspection report.
Does newly built homes come with warranty?
New built homes have generally limited coverage on warranties. This might also differ depending on which part of the property.
Who will sign the closing documents?
Everybody who holds the title of the property should sign the documents.
What information must be disclosed before I purchase?
Sellers must disclose latent defects (defects that aren’t clearly visible) while patent (clearly visible) are not required as they can be found out during a home inspection.
Am I responsible for repairs after buying a new home?
In extreme situations where the seller fails to disclose any significant problem would be considered concealment (fraud). The seller might be responsible for the repair depending on the damage and whether the seller knew of it beforehand. Talking to neighbors around the property can also help you uncover anything wrong with property.
Can I still sell my property as a non-resident Canadian?
If you are a non-resident of Canada during the purchase process, you may require legal assistance. You might have to apply for a non-residency clearance certificate which would be typically done through an accountant.
What are other costs of buying a new home?
A few of the costs include cost of a home inspector report, adjustment for taxes, insurance, registration fees to receive title and moving expenses. Your home is an investment, make sure that you taking the preemptive steps to secure your home and keep it in its best conditions for years to come.
I agreed to buy a home, but how do I cancel?
An offer needs to accepted and signed before it becomes binding, until then you may change your offer.