Purchasers, first-time home buyers especially, generally lack the knowledge to determine what they can afford when it comes to buying Toronto real estate and how the purchasing process actually works. Here is a step by step guide on how the condo purchase process works:
1) Start by getting pre-approved by your bank or a mortgage broker. Knowing what you can truly afford gives you a starting point and a price point to search within. After all, it would be very disappointing to find a home you love only to find out it is not within your financial means.
2) Find a Realtor (Real Estate Sales Representative) you trust! This is very important as you will be sharing personal information about yourself with them. Talk to your Realtor about what you are and are not looking for in a property.
3) Now the fun begins. Once you’ve been pre-approved for a mortgage and you’ve found your trusty realtor, your realtor will then begin showing you properties of interest.
4) While on the showings, scrutinize each condo unit. Think about the location, building amenities, the potential future value, the unit layout and of course the price.
5) Once you’ve found the condo unit you would like to purchase, have you Realtor research and carry out their due diligence.
6) Now its time to make up the offer. Have your Realtor go through the offer with you. You may also want to have a lawyer review it.
7) Your Realtor will then submit the offer to the Listing (Selling) Realtor who will then contact the seller to review the offer. The other party has a set time period, called the irrevocable date, to either sign back, accept the offer or not respond at all. Within this irrevocable time, the buyer is held to the agreement. If the irrevocable date passes without contact from the seller, the deal dies and neither party is held to the agreement.
8) Once the buyer and seller have come to an agreement regarding the price and conditions the deal is now either sold firm ( no conditions) or sold conditionally ( usually conditional upon arranging financing or lawyers review of the status certificate). If sold conditionally, the buyer then has a certain time frame, as set out in the agreement of purchase and sale to waive the conditions. Once the conditions have been met, the buyer signs a waiver which then firms up the deal.
9) The occupancy date is when the buyer and seller meet with their respective lawyers to exchange the property keys for payment. The title of the property is then switched over from the seller to the buyer and the buyer is then given entry and ownership to the property.
Buying real estate in Toronto is an exciting process. It can also a stressful and complicated process so it’s important to hire a Realtor you trust. After all, buying real estate is one of the largest investments you will ever make.
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