Flow Chart When
Buying or Selling a Home for a Typical Real Estate Transaction
Including New
Mortgage Financing
Note: This flow chart is intended as a guide - a thorough consultation
with a qualified solicitor is required.
Step One: Finding a home & making an Offer to Purchase.
The first step is for you to write down all the requirements of your purchase. You have to consider what the property you are buying "must" have and what you "want" it have have. Once you have made this list and decided upon the important aspects of your purchase we can meet and discuss your wants and needs.
You must visit with your lender to obtain mortgage pre-approval as soon
as you can.
We will thoroughly search the MLS and find the home that you want to purchase (easier
said than done!).
You make your offer to purchase property. Often the the offer would
contain conditions such as:
i) Confirmation of mortgage final approval
ii) Home inspection approval
iii) Property Disclosure approval etc.
The Offer is negotiated to acceptable terms and conditions for you.
Seller accepts your offer to purchase
You deposit money is placed with the listing brokers office "in
trust". In
Etobicoke the deposit is usually between $5,000 and $10,000 depending
upon the property value. It is your money and is credited to you
upon the closing of your purchase.
Condition removal process: This typically takes from 5 to 10 business
days and in the following order. If any of the conditions are found unacceptable
to you, the sale is voided.
i) Review Property Disclosure & approval.
ii) Have the home inspected by a inspection professional & approval.
iii) Other conditions met & approved.
iv) Confirmation of mortgage final approval
Waiver of conditions; as each condition is met you must remove (waive)
the condition from the Offer to Purchase within the predetermined condition
removal time period. If written waivers are not completed and presented
to the Seller within the time frame allowed, the agreement of purchase
and sale may be voided and your deposit is returned to you in full without
deduction.
Usual time frame is 3 to 12 days from the time the Offer is accepted to
remove all conditions
Step 2: Taking care of the details before your move.
The unconditional offer delivered by Seller Agent's office to your lawyer.
Often you want to estimate what your moving costs will be. Click
here to use a very handy Moving & Storage Calculator.
2 to 3 WEEKS BEFORE CLOSING
You would instruct your lawyer how to complete title description. (How
you want your names to be registered on title.)
Instructions to prepare mortgage delivered to your lawyer from the financing
institution.
Seller's lawyer obtains description and prepares transfer for execution
(signing) by the Seller.
Seller execute (signs) transfer with their Lawyer.
Your Mortgage documentation prepared.
The Seller's lawyer delivers transfer of land documents to your lawyer
under trust conditions
You need to be sure to arrange for home insurance to cover you & mortgage
or you may not be allowed to move into your home until this is finalized
and proof is delivered to lawyer.
Your Lawyer calculates the cash balance you will need to close their home
purchase after all adjustments & fees.
Delivers this "Statement of Adjustments" to you.
You would execute (signs) transfer & mortgage documents & deliver
cash difference (balance owing) from the Statement of Adjustments.
Balance owing forwarded to Seller's lawyer under trust conditions.
Your Lawyer submits transfer and mortgage documents to Land Registry Office
for registration
Seller's lawyer receives balance owing and holds it "in trust"
pending completion.
Registration of transfer and mortgage obtained - title is now in your
name (possibly) subject to mortgage.
Your lawyer requisitions mortgage funds and forwards the mortgage funds
to the Seller's lawyer "in trust" that any unacceptable title
encumbrances be removed.
Seller's lawyer receives mortgage proceeds and holds "in trust"
pending completion.
Seller's lawyer obtains discharge of encumbrances and reports to yours
lawyer. Pays out Seller mortgage if any.
Step 3: Move in time
Seller's lawyer releases keys to purchasers solicitor or advises Seller's
Agent of release of keys to you, once the lawyer has received the
funds and all the documents.
You can do a pre or post possession walk through of your home with or
without me.
Copy of acceptable title, in your name, delivered to your lawyer
Your lawyer reports to financial institution
Seller's lawyer reports to Seller: accounts for funds received and releases
funds to Seller.
Your lawyer gives you a final report with all the details of the transaction.
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kathy@etobicokehomes4sale.com Copyright © at Etobicoke, Ontario, Canada M9A 3T7 (416) 236-1241 First created - Tuesday, June 6th, 2006, 2006 at 6:06:41 PM -
