BUYING A HOME IN BC – THE PROCESS

Dana Collette, BA, JDManagement & Law

THE LEGAL STUFF This slideshow is intended for information purposes only.

It is not legal advice. Do not rely on it.

Instead, see a lawyer who practices in real estate law.

SUMMARY OF WHAT’S TO COME: What can you afford? What do you need and want? Get to know the market & your area of interest

The buying process Who can help you with your purchase?

WHAT CAN YOU AFFORD? Talk to the mortgage specialist at your bank or credit union, or a mortgage broker.

Also look at mortgage rates and quality of service that their competitors may offer so you choose the one that works for you.

Learn the mortgage term options. Ask your lender about the extra costs involved in buying a home, such as Property Transfer Tax.

WHAT DO YOU NEED AND WANT? Basic question: House or condo? Which best fits your lifestyle?House Freedom to do what you want in your space. Your own yard for playing or relaxing. Storage for outdoor toys. Workshop for hobbies. Work and expense to take care of inside, yard, roof, gutters, etc.

Condo Freedom to close the door and go. Minimal time and money on maintenance. Monthly strata fees, but these usually include costs of other taking care of outdoors, roof, etc.

How many bedrooms/bathrooms, location, features (e.g. fireplace, large yard), condition (move-in ready or needs work), etc. Think about how you live.

GET TO KNOW THE MARKET & YOUR AREA OF INTEREST Get to know the market as much as possible before buying.

Spend time doing searches on Realtor.ca and FSBO (For Sale by Owner) sites to see what is listed (what the property sells for may be higher or lower).

Go to open houses.

Cont’d

GET TO KNOW THE MARKET & YOUR AREA OF INTEREST (CONT’D) Ask your real estate agent to sign you up to receive updates when a property within your criteria comes on Realtor.ca or is sold. These show more information than what is on Realtor.ca for the public. And you’ll see how much properties sell for, not just their listing price.

Drive and walk around areas you like – explore ones you hadn’t considered. Talk to people and ask what they think of living there – and why.

Look up the Official Community Plan zoning map for the area on the local government website to see what is currently planned for the area – e.g. will it likely remain a single family home area.

THE BUYING PROCESS Here is a fairly typical process, but yours may be different so be flexible and ask your agent to explain everything. The following slides will explain each.

1. Selecting the property2. The negotiation process3. Removing subjects4. Arranging to take possession5. Your lawyer’s office6. Taking possession

Cont’d

THE PROCESS: SELECTING THE PROPERTY

See the home for the first time, and often a second time to look more closely. Check over the PDS (property disclosure statement) which is a legal document that sellers fill out disclosing information about the property.Go to the local government planning office and ask to see the history of the property (e.g. any permits granted for renovations). Ask if they know anything about that property or area that they can share.

THE PROCESS: THE NEGOTIATION PERIOD

Tell your agent you are interested in putting in an offer. The agent can help you determine what to offer, considering what’s going on in the market and how the home is priced.

Cont’d

THE PROCESS: THE NEGOTIATION PERIOD (CONT’D) Also discuss ‘subjects’*, such as getting the home inspected, checking with your lender, checking that the home can be insured, viewing condo bylaws & minutes, and whatever else is applicable to the property before you are locked into the deal.

*A ‘subject to’ clause is a term in your offer that essentially says that you will commit to buying the property subject to (once you have) verified several aspects related to the property, such as getting it inspected, ensuring you can get financing on that particular property, and ensuring that you can get it insured.

Cont’d

THE PROCESS: THE NEGOTIATION PERIOD (CONT’D)

Talk to your agent about the bidding process, so you’re both clear about what you want in terms of preferred and highest price, information about you that s/he can share with the sellers, amount of deposit you are willing to give, etc. Be available over the phone and in person through the bidding process, so your agent can negotiate in an informed and effective way.

THE PROCESS: REMOVING SUBJECTS

Arrange to do everything necessary to remove subjects, such as arranging for a home inspector, give your lender the property information so they can confirm they will give you a mortgage on the property, ensure you can insure the property, look over condo documentation (bylaws and minutes of meetings). When you’re satisfied with everything, you will sign a document to ‘remove subjects’ and then you are in a firm deal.

THE PROCESS: ARRANGING TO TAKE POSSESSION

Finalize arrangements with your lender.Arrange for property insurance.Give your agent your lawyer’s contact information so s/he can forward all the documents needed. Make an appointment with your lawyer/notary to sign the documents near the date you take possession.

THE PROCESS: YOUR LAWYER’S OFFICE

You will meet with your lawyer or notary to sign the final documents to enable him/her to transfer the property into your name.BC has a Land Title System, so the process is fairly simple.If you are buying the home with another person, such as your spouse, your lawyer will ask whether you want to own together as joint tenants or tenants in common. Joint tenants – if one of you dies, the survivor is left owning the whole property.

Tenants in common – if one dies, his/her portion of ownership goes to his/her heirs.

THE PROCESS: TAKING POSSESSION

When you get the keys – take the time to walk through and inspect the property before actually moving in. Report any issues to your real estate agent. Enjoy your new home!

ENJOY THE PROCESS! It can seem overwhelming, but with good planning and preparation, buying a home can also be exciting and enjoyable.

Also see the slideshow: Select the Right Team to Help You Buy Your Home

All images: Pixaby.com (CCO Public Domain)