Tips to help you prepare to buy or sell your property

Everyone knows that buying or selling a property is one of the most important transactions you will ever enter into in your life. And because every transaction is unique and can bring many surprises, the OACIQ, the Organization responsible for protecting the public by overseeing real estate and mortgage brokerage practices, has compiled the following tips to help you plan and understand the process involved.

IF YOU ARE BUYING

IF YOU ARE SELLING

1. Using the services of a real estate broker

Areal estate broker will manage every step of your purchase, from monitoring new properties coming on the market to the signing of the deed of sale at the notary’s, so that you can continue going about your normal business without having to worry.

When you enter into a Brokerage contract-Purchase with your broker, you are ensuring that your interests will be properly represented, whether the property you are considering is being sold through a broker or directly by the owner.

A real estate broker understands your needs, is knowledgeable about the real estate market, and will guide you through every step of the transaction. He has the necessary expertise to help you set your asking price to make sure you don’t underestimate the value of your property.

Doing business with a broker also means making sure that contracts and forms  are clearly and correctly drafted.

2. Choosing a real estate broker

When choosing a broker, prepare a list of questions to ask of potential candidates: Does he know the area you are looking at? Does he understand your needs and requirements? Feeling at ease and having trust in your broker is crucial. You should also make sure that he is properly licensed by checking the Register of licence holderson the OACIQ website.

When choosing a broker, prepare a list of questions to ask of potential candidates: Does he have a flexible schedule and will he be available to answer your questions and arrange visits? Does he have interesting ideas on how to promote your property? Feeling at ease and having trust in your broker is crucial. You should also make sure that he is properly licensed by checking the Register of licence holders on the OACIQ website.

3. Analyze your buying capacity
Before you even start looking for a property, it is important to draw up a realistic budget that takes your lifestyle and goals into account. Your real estate and mortgage brokers can help you determine the amount of financing you will need.

3. Your broker’s remuneration
Generally, remuneration is based on a percentage of the selling price of the property. Other remuneration methods are also possible; discuss them with your broker. The remuneration amount and terms will be defined in your brokerage contract.

4. Determining your needs
Once you know how much you can afford to pay, determine what type of property you are seeking: Single-family? Semi-detached? Multiplex? With a pool? A garage? Take the time to discuss your needs with your broker so he can direct you to the right type of property and help you find YOUR dream home.

4. The marketing of your property
It is a good idea to discuss with your broker the promotional tools he plans to use to sell your property, including listing with an information dissemination service, advertising, open houses, etc. In addition, your broker has a valuable network of contacts that will give your property increased visibility.

5. Many different types of loans
25 or 30 years? Open or closed? Do you know what type of loan best suits your needs? Talk to your
mortgage broker; he can help you navigate this complex process.

5. Signing a brokerage contract
Take the time to go over your
contract with your broker before signing, and don’t hesitate to ask questions if any clauses are unclear. Did you know that all the forms used by brokers are designed by the OACIQ and can be viewed on the OACIQ website?

6. You have found THE house …
…you’re excited and ready to present a
promise to purchase? Make sure you understand every aspect of this document clearly. Now is the time to ask all those niggling questions to your broker: Are the appliances included? Can you have the dining room chandelier? Everything must be spelled out in the promise to purchase.

6. The seller’s declarations
The Declarations by the seller of the immovable form is essential to protect your own interests and those of the buyer. In it you must declare, in good faith, everything you know about your property, such as servitudes, water infiltration problems, etc. Your broker is the professional who is knowledgeable about this form. He is familiar with the content, the vocabulary used and the proper way to complete it in order to accurately reflect the condition of your property.

7. The pre-purchase inspection
Your broker has an ethical obligation to recommend that you have the property inspected by a professional or a building inspector who meets the requirements outlined in the regulations.

7. Promise to purchase and counter-proposal
Your broker has an obligation to present all
promises to purchase he receives. It is then up to you to: accept one; refuse and issue a counter-proposal to propose changes, such as the inclusion or exclusion of certain items, or a different selling price; refuse it and wait for other offers.This is the stage at which your broker’s talent as a negotiator and his ability to manage simultaneous promises to purchase will be at their most valuable.

8. The counter-proposal
The price is not the only thing that determines if your promise to purchase will be accepted. The seller could issue a counter-proposal on the price, but also regarding the date of occupancy. Not happy with the proposal? Your broker will help you draft your own counter-proposal in response.

8. The property transfer
This stage will require the involvement of a notary who will examine titles and draft the deed of sale. Your broker will continue to play a pivotal role, making sure that all the documents required are available and otherwise assisting in the process.

9. Your broker, your ally

Remember that your broker is a true real estate professional. He will guide you through every step of your transaction in order to bring it to its successful completion.

10. The OACIQ at your service

If you have any questions on real estate or mortgage brokerage practices, or if you need information during or after the transaction, contact an information agent at the OACIQ Information Centre at info@oaciq.com or 450-462-9800. The thinkbroker.ca website also contains a wealth of useful information.

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