Whether you are a current home owner or a first-time buyer, the steps in completing a home purchase includes several steps. Here is a list of considerations that will help you navigate the purchase timeline and documentation required.
1. Once you've found your home, your agent will advise you on the price to offer to help you prepare your offer. Ideally, they will provide you with some recent sales statistics so that you can make an informed decision about the price to apply to ensure you don't overpay for your purchase.
2. Your offer will outlne any conditions you want fulfilled (also known as Subjects) before you finalize your purchase commitment. The amount of time allocated to satisfy these terms is usually a week although this can be negotiated. Some more common conditions include:
- securing a professional inspection for the property to determine the extent of any deficiencies
- Approval for mortgage financing
- Reviewing the Property Disclosure Statement as completed by the seller
- Ensuring you can secure insurance coverage for the property
- reviewing the title documents associated to the property
- reviewing meeting minutes for strata properties
3. Once you are satisfied that the conditions have been met, you will need to sign an amendment to your contract indicating that you are willing to remove the subjects on the contract and proceed with the sale. At this time, you will need to provide a bank draft for the amount of the deposit outlined in the contract. Once the amendment has been signed and the deposit is provided, the sale is binding.
4. You will need a notary or a lawyer to facilitate the transfer of the property. When you remove the subjects, you should provide the contact information your legal representation to your agent.
5. The COMPLETION DATE on your contract is the date in which you need to ensure you have insurance on the property. The effective date/time of the insurance will need to begin at 12:01am of the completion date.
6. Two weeks before the COMPLETION DATE, contact your notary/lawyer to arrange a date/time to sign all the documents. You may need to bring a cheque to pay for their fee and possibly any purchasing costs if you are not arranging financing with the bank.