By: Jayson Schwarz LLM
Buying a home is the most important purchase most people make in their lives. Research the area you want to live; research what is around, check what was there before and what is proposed in the future. Make sure you have your mortgage pre-approval, home inspector and your lawyer ready to go. Research and knowledge give you the ability to make an educated choice that will ensure that your new home is the dream home you always wanted.
The first step is to determine the price you can afford to pay. This means getting mortgage pre-approval so you know how much money you have between your cash on hand and the mortgage amount. You will also know the payments and what you can carry. In today’s mortgage market some lenders are offering to hold mortgage rates for up to 120 days while the purchaser shops for a home and by pre-approving with a good lender or mortgage consultant, you also get to learn about many of the pitfalls of mortgage financing before you have to experience it.
One of the most common mistakes made by buyers is accepting the representation of others as to what will happen on a purchase. In Ontario there is a law that says if a matter relates to land and it is not in writing it is not binding.
The first thing you all have to remember relates to your Agreement of Purchase and Sale. If something you want is not in writing and signed for or initialled by you and the Vendor it will probably not be binding. Therefore don=t accept promises unless in writing and signed for!!!!!
On a new home this rule applies to the on site sales agent. It does not matter what is promised, unless it is in writing don’t expect to find it when you move in. It means cap or get maximums on ALL costs in the Agreement. On resale it means do not accept what any of the agents say unless it is part of the Agreement. Make sure all of your conditions are included and the deal expires if you do not waive them; not the other way around.
Keep this rule close to heart and insist all the way through your deal that everyone put everything in writing. This includes the vendor, agent, banker or lawyer.
Remember only a lawyer can provide legal advice, that’s the law. When you select a lawyer find one who knows real estate and wants a long-term relationship.