Make an Offer & NegotiateCongratulations! You’ve found the one and you’re about to write a Contract of Purchase & Sale. Negotiating will involve certain items and conditions such as PRICE, DEPOSIT, TIME- LINE, CHATTELS (appliances & objects that are included in the purchase price), and Contract SUBJECTS. These SUBJECT conditions are there for YOUR protection, so make sure you discuss your specific needs with your REALTOR® before you sign the contract. In the event of a bidding war (or multiple offers) you will be competing with other buyers so you’ll want to make the first offer your best offer.
You’ve come to an agreement with the Sellers and have signed the Contract of Purchase & Sale. Your home is still NOT yours. Between the signing of the contract and the date of Subject Removal, you must approve, satisfy or waive all the Subjects in the contract to your satisfaction. The sale could collapse or move forward to Closing at any time before the Subject Removal date. There may also be more negotiating involved before the Subjects are removed.
Once Subjects are removed in writing, the listing REALTOR® will put a SOLD sign up, however, the listing remains active on Realtor.ca and in the MLS system until CLOSING. As the Buyer, the TITLE to your home will not be transferred to you until funds have been transferred usually late in the day of CLOSING. You will get POSSESSION the day and time your CONTRACT specifies. Transfer of keys are arranged with the your REALTOR® and you’re ready to move in and enjoy your new home.
Closing Costs(FROM Real Estate Council of BC)
It’s easy to count your available cash, but remember that all your cash savings cannot be used for your down-payment. There are last-minute costs, such as taxes, legal fees, appraisal fees, moving expenses, and home insurance to pay before you are finally in your new home. The time to budget for those “end” expenses is at the pre-qualifying stage. You must be prepared to pay most, and perhaps all, of the following closing costs:
Property Transfer Tax – The British Columbia Provincial Government charges a property transfer tax, (different than Property Taxes) which must be paid before any home can be legally transferred to a new owner. Some buyers may be exempt from this tax. For further information, please go to www.sbr.gov.bc.ca/business/Property_Taxes/Property_Transfer_Tax/ptt.htm.
Goods & Services Tax – If you purchase a newly constructed home, you may be subject to GST on the purchase price. There may be some rebates available depending on the value of the home. For further information, contact the Canada Revenue Agency at www.cra-arc.gc.ca.
Property Tax – If the current owners have already paid the full year’s property taxes to the municipality, you will have to reimburse them for your share of the year’s taxes.
Appraisal Fee – When the lending institution requires an appraisal of the home before approving your loan, it may be your responsibility to pay the appraiser’s fee.
Survey Fee – The lending institution may also require that a survey certificate be pre- sented to them. The purpose of the survey is to formally establish the boundaries of the property and to ensure that all buildings are within those boundaries.
Note: Lending institutions may ask for either a building location survey, which establishes where a building is located on a property, or a monumental survey, which establishes the actual boundaries of a property. If the current owner cannot provide a recent survey certificate, it will be your responsibility to pay the surveyor’s fee.
Mortgage Application Fee – Lending institutions may charge a mortgage application fee. This application fee may vary between lending institutions.
Don’t forget about last minute costsMortgage Default Insurance – This type of insurance is required on most mortgage loans in excess of 75% of the appraised home value. Its purpose is to ensure that the lender will not lose any money if you cannot make your mortgage payments and the value of your home is not sufficient to repay your mortgage debt. The insurance premium is paid to the lender and, in most cases, is added to the loan amount and paid for over the term of the loan. When Dealing with CMHC, be sure to read the FINE PRINT. Mortgage Default Insur- ance only insures the lender, NOT the buyer.
Life & Disability Mortgage Insurance – At your option, you may purchase insurance which will ensure that your outstanding mortgage balance is paid if you die or become disabled.
Fire & Liability Insurance – The mortgage lender will insist that you purchase an insurance policy which guarantees that, in the event of fire, the lender will receive the balance owing on the mortgage loan before you receive any insurance proceeds.
Legal Fees – The transfer of home ownership from the seller to the buyer must be recorded in the Land Title and Survey Authority Office in order to protect the new owner’s interests.
You will be advised to engage a lawyer or notary public to act on your behalf during the completion of your purchase. The lawyer or notary public will charge a fee for this service, plus disbursements, including the Land Title Registration fee. If you are financing your purchase with a new mortgage loan, there will be a further fee and disbursements to prepare and register the mortgage documents.
Other last-minute costs you shouldn’t forget to set some money aside for:
- home inspection fees
- moving expenses
- deposits required by utility companies
- household goods:
- kitchen appliances,
- garden equipment,
- redecorating or renovations
- garbage cans, tools, window coverings, etc.
Mobile: 250-338-9854 Phone: 250-286-0110 Toll Free: 1-888-986-0110 Email: team@SelectChoiceRealEstate.ca