Purchasing... What Happens

When you have found just the right home and you are ready to write an offer, here's what needs to be decided. Your Realtor will guide you through the following:

Price

Your Realtor should provide you with comparable sales of other homes in the area in order to establish a fair market value. Your offer will be something less than that in anticipation of a process of offering and receiving a counter offer from the seller. This will establish what the seller is willing to sell for. If the seller is not willing to sell for what you are willing to pay, you may need to start over on another property.

Completion Date

This is the date on which the funds are transferred to the seller (as a result of the actions of the buyer's and seller's lawyers) and title changes hands. Your lawyer will instruct you prior to the Completion Date regarding what you need to do in order to fund the purchase. They will also set an appointment with you a few days before Completion for signing all of the documents relating to the purchase.

Possession Date

This is the date that you anticipate moving into your new home. It is typically 1 to 3 days after Completion. The contract will also specify what time of day you can have access. If you are moving from another property, you will need to coordinate this date with the Possession Date of the property you are leaving so that you can move directly from that property to this one.

Adjustment Date

This is the date on which the taxes, insurance and utilities are transferred to your name and you become responsible to pay them going forward. This date usually coincides with the Possession Date.

Deposit

You will be expected to pay a deposit which is typically a % of the purchase price. The deposit is usually paid at the time the offer is accepted or when subjects are removed and generally is paid into the trust account of the buyer's agent where it is held until shortly before Completion Date when it is transferred to the lawyer for disbursement.

Inclusions

There may be items in the home you are purchasing which you would like to have included in the purchase price but are not included in the listing. These will have to be written into the contract to avoid any misunderstanding later on. Generally things that are only attached by their own weight and not affixed in some fashion need to be addressed. Example: You may request that the mirror on the wall, which is only hung on a hook and therefore not considered a part of the property, be left behind; the seller may not intend to leave it. If the mirror had been screwed to the wall, it would technically be considered attached and part of the property. These types of fixtures and chattels should always be addressed if there is any doubt as to whether they stay or go.

Subjects

Subjects are clauses in the contract that allow you a specified period of time to confirm your ability and desire to purchase the property. These can cover a very wide variety of concerns including financing, insurance, inspections, disclosure etc.. The objective of a subject clause is to allow you as the buyer to investigate the property more thoroughly and to do your due diligence before committing to the purchase. Typically subjects need to be removed within one to two weeks of the date of the offer, with the exception of a 'subject to the sale of' clause which creates complexities that your Realtor needs to clearly explain.

After the subjects have been satisfied and removed from the contract, you are committed to the purchase so it is imperative that all your questions and concerns have been addressed prior to removing subjects.