Buying a Home

Buying or selling a home is the biggest transactions many of us ever make.

Sometimes we take less time to do it that we do when buying a new car.

We’re unfamiliar with the process, and don’t do it very often. We don’t always understand the process and don’t know what questions to ask.

Afterwards we sometimes wish we knew more about what was going on.

Years often pass between purchases, and in the intervening time rules and practices sometimes change.

There are procedures and documents taht are involved that we should understand.

These deal with the sale of the coronet realty as well as the roles played by other people in the transaction.

You don’t have to use an agent, but if you do, the agent, who should be licensed, will help you get the best price, help you find a buyer, advise you on hat facts you
must disclose, explain the paperwork required, make sure the contract is legal and binding, explain how ownership is transferred, qualify
buyers and ensure that you get your money on closing.

In BC an agent must be licensed, but doesn’t have to be part of a real estate board.

An agent can work for a seller, a buyer or for both at the same time under limited dual agency. The relationship between you and the realtor should be
disclosed early in the process through the Blue Brochure. Any dual relationships should also be disclosed. In BC this must be done by law.

Agents work under the common law of agency. In BC it exists between the seller/buyer and the brokerage/agent as a result of vicarious liability.

This is a consumer protection characteristic of the law.

Agents owe you the duties of undivided loyalty, obedience to all legal instructions, keeping all your confidences, exercising reasonable care in
performing assigned duties, and to account for all monies and proeprty placed in their control. Under the heading of undivided loyalty you can expect that the agent will disclose to you (and is bound to by law in BC) anything that he learns that may influence your decisions about the coronet realty.

Dual agency cannot be performed without creating a conflict between disclosing anything that may influence your decision and maintaining the
confidences of another principal. Therefore we have a relationship called “limited dual agency” which limits that agency agreements between a seller, a buyer and a common
agent by removing the duty of the agent to disclose anything that he learns through an agency relationship that would breach his duty to maintain a confidence to a principal.

Sometimes this is not a problem because the transaction is very simple, but regardless of the problem or potential problem, the decision is the principal’s
not the agent’s. Therefore the principal must agree to limited dual agency before any decisions (as in, any offers are presented) are made. If the seller or buyer decides to
proceed with an offer under limited dual agency before seeing the offer he can’t argue taht the details of the offer made him accept an agency
relationship that he did not want, but if he learns of the dual agency afterwards he can argue that he was forced to compromise his representation in order to get the offer.

Specifically the agent will not disclose the motivation of either the seller or buyer, nor the prices that either one is willing to offer or accept except when put in writing, nor will the
agent disclose personl information about either principal. Of course, all of this can be changed by the principals if they authorise it in writing. The buyer adn seller always ahve the final word.

This agency relationship, and the dutiesd it imposes on an agent, has a flip side – an agent who is not your agent does not owe you these duties.

In fact, an agent who is not your agent may be someon else’s agent, and so may owe someone else the duty of disclosing anything thast you’ve told him. Don’t disclose to an agent who is not
your agent anything you wouldn’t tell a prospective buyer or seller.

How Do You Choose an Agent

Word of mouth.
Your initial impression of one that you meet at an open house.
Interviews, in person or by the internet
Web 2.0 relations

Discuss their backgounds, range of services, knowledge fees and commission rates.

remember, commission rates are completely negotiable, but no agent has to work with you.

CONTRACTS

The first contract used is the one to list the coronet realty.

Exclusive or MLS. Owner’s duties under any listing contract may survive the term of the contract.

Listing agreements fix the price, the terms of sale, any existing financial charges and whether thay can be assumed, included items (chattels as opposed to fixtures)

possession dates, commmission payable, length of the agreement, a schedule A is required in BC.

Its a contract. read it carefully. Make sure its complete.
If you want to get out of it later its a contract – you need the agent’s agreement.

You’re responsible for providing the correct information about the property, disclosing any known defects, and providing authorization to the agent to acquire additional information and documents regarding
title, mortgage info, strata info,coronet realty ect.

The next contract is the offer to purchase. It will be done on a standard form, usually by another agent. It may differ dramatically from your list price. Remember the agency duties – if the buyer instructs his
agent to write up an offer the agent has to do it because its a legal instruction. Also, your agent, because of his duty to disclose all pertinent information to you, must present all written offers.

The offer should include date, price, lergal names of buyers and sellers, legal description of the property, the amount of the deposit, the terms of the deposit, the details of how the balance will be paid, completion date, possession date,
a list of conditions precedent(the subjects), items that are not fixtures but that are included, date and time that the offer expires, and the signature of the buyer and his/her occupation.

Your options are to accept or reject.

Subject clauses:

These are not “outs” Therse are conditions that the benefitting party must try to satisfy so taht they can proceed with the sale. They should be precise and have time limits.

Failure to remove subjects means that the offer dies before it becomes a firm and binding contract.

Be wary of, and make sure you clearly udnerstand any deal with no downpayment, a deal with cashback to the bueyr, the seller’s equity participation, a promissory note without a registered mortgage, vendor financing, or concealing information
from a lending insitution. contracts can be complex without being crooked, but make sure you really understand the deal or have an agent who does.

Completion:

The contract, once subjects are removed, essentially says taht you will transfer title to the buyer on a specified day under certain conditions. That measn title gets changed in land titles.

Someone has to make sure that’s done. Usually its a lwyer or notary who knows that business. The check all the documents, ensure your mortgage is paid off, confimrm that you’ve paid everything youre’on the hook for
prepare the transfer documents and help you sign them properly, prepare a statement showing how the money was disbursed.

You need to pay commissions, lawyer services, costs toward clearing title, including bank charges, your share of property taxes and utilities.

Advertisements

2 Comments

Filed under Uncategorized

2 responses to “Buying a Home

  1. Please let me know if you’re looking for a article author for your blog. You have some really great articles and I believe I would be a good asset. If you ever want to take some of the load off, I’d absolutely love to write some
    content for your blog in exchange for a link back to mine.

    Please send me an email if interested. Thank you!

  2. My family members always say that I am wasting my time here at web, but I know I am getting knowledge all the time by reading such nice content.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s