Real Estate Buyers and Sellers Guide - Homes For Sale | · PDF file ·...

Compliments of RealtySource Inc., Brokerage“Your Source for Real Estate”

Office: 613.546.4208E-mail: [email protected]

www.realtysource.com

Real Estate Buyers and Sellers Guide

Not intended to solicit buyers or sellers currently under a contract with a real estate brokerage. REALTOR® and MLS® trademarks are owned or controlled by the Canadian Real Estate Association (CREA) used under license. Material contained herein is subject to change and future updates without notice E. & O. E.

Kingston offices

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To buy or sell real estate in The Greater Brockville & AreaOffice: 613.498.7283

E-mail: [email protected]

Leasing, sale or acquisition of industrial/commercial/investment real estatecall 613.546.4208 and ask for the Commercial Division

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For real estate service in The Greater Kingston & Area

Office: 613.546.4208E-mail: [email protected]

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City Central & EastWest-End

PART1-BUYINGAHOME 2 Agency Relationships And Buyer Agency 2 A Complete Market Analysis 3 What Size House Is Best For You? 3 Accommodations... What Type of House? 4 Mortgage Pre-Approval 4 Land Transfer Tax 5 Finding The Right Home & Helpful Considerations 7 The Cost Of Living... How Much Can You Afford Each Month? 8 Choosing The Right Mortgage For You 9 How To Calculate Mortgage Payments 9 Home Shopping? Put RealtySource To Work For You10 Found The Right Home... Let’s Take A Second Look10 The Down Payment11 Home Insurance

11 Title Insurance12 Our Top 10 Resale Home Buying Tips13 RealtySource Inc., Brokerage17 Our Top 10 New Home Buying Tips18 Commercial Division18 Home Buying... A Wise Investment?18 Choosing A Lawyer19 The Offer Process20 Sign-up Today For Our New Listing Update Service PART2-SELLINGAHOME21 In Our Clients Own Words... 22 Preparing Your Home For Sale 23 What Is A Home Inspection?24 Well Water & Your Home24 Remember To Notify... 25 HST & Real Estate25 Moving In... How Much Is It Going To Cost? 26 Moving Day 27 Closing Costs28 People To Call List

CONTENTS

RealtySource Inc., Brokerage | 1

NELSON, WILSONJOHN R.A. WILSON, B.Sc. (Hons), LL.B.

Barrister & Solicitor

If you are buying, selling or refinancing a home, cottage or commercial property we would be pleased to assist you.

613-544-1618We pride ourselves on providing efficient,

professional, personal service for more than 30 years.

REAL ESTATE • WILLS & ESTATE PLANNINGPOWER OF ATTORNEY • CORPORATE & BUSINESS

295 Queen Street, Kingston, ON K7K 1B7Email: [email protected] • Fax: 613-389-8376

2 | RealtySource Inc., Brokerage

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There are a number of benefits to working with a real estate representative that is also a REALTOR® which are highlighted herein. A key part of our job is to make sure you understand the Agency Relationships from Sellers Agent, Buyers Agent, Dual Agency through to Customer Service. We will provide you literature to explain the relationships that are available and further, prior to any offer being made or received, we will highlight the Agency relationship for you specific to that transaction.

It is also important to note that when Sellers list property for sale, they sign a listing document which among other points provides the authority to the real estate brokerage to market the property for sale to prospective buyers. This agreement outlines the respective relationship between the real estate brokerage and the Seller. As buyers’ representatives, we can provide either a “Customer Service Relationship” or a “Buyer Agency Relationship”. The latter form is much like the contract between Sellers and Buyers in that it outlines the services offered to

Agency Relationships And Buyer Agency

A Complete Market AnalysisYou deserve a well researched written opinion of value of your property. We will deliver to you an overview of recently sold and currently listed comparable properties complete with a written summary of recommendations to assist you in making an informed choice on current market value.

Buyers and further gives us authority to forward your documentation to solicitors to assist with the purchase of your property and to represent your interest.

Your RealtySource representative will provide you documentation and review with you the forms of agency relationships that exist to assist you with understanding who is working for whom during the process.


Is life in your present home too close for comfort? Do you have to take a number every morning outside of your own bathroom? Would a family room or a playroom be useful, or could your kitchen be redesigned to be more efficient?

Most homeowners can answer yes to at least one of these questions. It's all a matter of space and how it's used. It's also a matter you need to think about carefully when choosing your next home.

For instance: How many rooms will you need for the house to be liveable? Is a single bathroom enough or would it be more convenient to have a second one? It's okay to have two small children in one room now, but how will it be in a few years?

It's not just the space inside the home. You should also remember any special needs that you may have, such as a large yard, or if you plan on buying a truck or trailer, will zoning regulations in the area permit you to park it near your home?

Accommodations... What Type Of House?

What Size House Is Best For You?

Today's housing market offers many types of accommodations and finding the one that best suits your needs can be a challenge. The names given to different housing types can vary from region to region, but listed here are the most common types available for a quick reference.

• SINGLE FAMILY DETACHED HOUSE: A freestanding dwelling of one or more storeys designed to accommodate one family.

• SEMI-DETACHED HOUSE: One of two single-family houses joined and separated by a common wall.

• LINK HOME: One of two single-family houses typically joined at the garage.

• DUPLEX, TRIPLEX, ETC: Two or more dwelling units, one above or beside the others. The owner may choose to live in one unit and rent the other as a source of investment income.

• ROW OR TOWN HOUSE: One of several single-family dwellings joined together by common walls.

• CONDOMINIUM: Most often either townhouses or apartment-style. Owners have a share in a condominium corporation, and enjoy the benefits of home ownership within the four walls of their unit. The condominium corporation maintains the common areas such as parking lots, hallways, parks, elevators, etc.

• MOBILE: While most mobile homes rarely move anywhere, they are not often secured to the ground by a slab or foundation. They most often sit on leased land, but can be situated on the owner’s property as well.

• COTTAGE: Most often built for 3 season use only, i.e. little or no insulation, heating source, seasonal zoning, etc.

Yuri Tarnowecky, B.A., LL.B.

Barrister and Solicitor

633 Norris Court, Unit 5Kingston, ON K7P 2R9

Tel: (613) 384-2354Fax: (613) 384-8904

Email: [email protected]


A pre-approval for a mortgage is an important first step in the home buying process. It allows you to know exactly how much a lender is willing to give you, so you can view houses with confidence and submit the strongest possible offer when you’re ready.

You can start on your own by assessing your annual income versus your current debts. If the ratio, also called Gross Debt Service (GDS) is higher than 32% debt to income, you may need to re-evaluate your current loans. A mortgage broker or bank representative, however, is best qualified to help you figure out how to make things work. You can check your credit report on your own for a small fee with companies like www.EquiFax.com and www.Transunion.com.

Lenders require certain information to evaluate you properly, so here is an overview of what you’ll need:

1. Your last year’s Notice of Assessment. If you’re self employed, bring the last 2 - 3 years of income.

2. Your most recent pay stub.

3. List all your current debts (credit cards, car or other loans) and the lender involved including most recent balance and monthly expenses.

4. List of your current assets (RRSP’s, vehicles owned, etc.).

5. Source of down payment. If it is a gift from a family member, you’ll need a letter from them stating as such. If it’s coming from your RRSPs, TFSA, or similar source, you’ll need documentation.

Keep in mind that mortgage approval is subject to the accuracy and confirmation of your documents and statements. It is also a ‘general’ pre-approval, and some lenders are more particular about the type of home they will lend on. For example, many lenders will not give a mortgage for a mobile home because the land is leased. Others will hesitate if there are major structural problems, poor water supply, etc.

It’s important to find out what limitations the lender has and what options you will have for pre-payment, renewal terms, etc. Here are some questions you should ask your bank representative or mortgage broker:

1. What are the current interest rates and terms available to me? Sometimes the lowest rate offers the fewest options for pre-payment. Also, discuss options such as variable rate mortgages, which may be better suited to your needs.

2. What fees are involved? Specifically: insurance premiums, appraisal costs, lender fees.

3. What penalties are involved if I want to pay out all or part of my mortgage in the future?

4. Can I port this mortgage if I decide to sell and purchase another property?

5. What programs are available to you to assist with your purchase? These may include RRSP Home Buyers Plan, Purchase Plus Improvements options (to finance cost of improving your home within your mortgage), Land Transfer Tax rebates and more.

6. Is a longer or shorter amortization better in the long term? What about bi-weekly versus monthly payments?

The above information will greatly assist the meeting you have with your lender or mortgage broker.

Mortgage Pre-Approval

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Land transfer tax is assessed on a property when a deed is registered transferring ownership of the property from one party to another. The tax uses a sliding scale of percentages based on property value.

CalculationCurrently, the land transfer tax in Ontario is as follows:0.5% on the first $55,0001.0% on the portion between $55,000 $250,0001.5% on balance over $250,000

Example: Land Transfer TaxCalculationA single-family home is purchased for $450,000. The following calculation applies:

$0-$55,000 .005 x $55,000 = 275$55,000-$250,000 .01 x $195,000 = 1,950$250,000-$400,000 .015 x $150,000 = 2,250$400,000 plus (.015+.005) x $50,000 =1,000

Land Transfer Tax Payable: = $5,475

Land Transfer Tax


City versus country. New versus resale. Condo versus freehold. There are a wide range of options available to home buyers in all price brackets. We have compiled a review of some typical factors you may wish to consider and also discuss further with your RealtySource sales representative.

NEW HOME CONSTRUCTIONDepending on the stage of construction, you can have selection of everything from the exterior cladding through to the colour of the paint. Typical construction starts with a builder’s specification of construction finish standards and in some instances, a price list for extra upgrades over the standard. We recommend a review of the selections available to you as part of your new home review and in particular ask questions about what is finished and what is not finished with your new home. Here is a list of recommended review points for new home construction:

• Deck and landscaping are typically not included; review exterior finish standards.

• Paved drives are typically standard but if not, may be a required future expense as part of your contract.

• Builders tend to market homes for sale including Net HST (any buyer GST/HST rebates go to the builder) for any purchases where the Buyer is taking possession for personal occupancy. A lot of people think the sale price does not include HST when in fact it does include the Net HST applicable within the builder defined price.

• The Tarion Enrollment Fee (your new home warranty) is an “in addition” to the purchase price item and the cost for enrollment is indexed to the purchase price of the home. At time of printing the enrollment fee (including 13% HST) for a new home between $250,000 to $300,000 was $723.20.

• There are currently some mortgage insurance savings for high ratio mortgages (20% or less down payment) when purchasing an Energy Star® home and additional utility savings built in with this option over standard building code.

• Basements are typically unfinished spaces with a new home.

• Lot sizes can be a significant cost factor for increased width as new home builders typically purchase land on a front foot basis and there may be premiums for select lots.

Finding The Right Home & Helpful Considerations

• The Tarion forms can be a little bit to absorb, what is important to look for is the builder’s track record on meeting closing dates and is the subdivision registered (a registered subdivision has an assigned number i.e. 29R or 13M-123)

• When you purchase a new home it is recommended that you complete a framing inspection during the construction process to catch major errors before it’s too late.

• Selections will need to be made within a defined time period and must be done in writing so double check before you sign off for finish items to confirm accuracy.

• Review adjacent land areas currently undeveloped to confirm what the master plan is for the developing community and confirm plans are finalized with respect to adjacent land, as uses can change.

•When doing an agreement to purchase contract on a new home, we are not using the standard Ontario Real Estate Association (OREA) form for purchase, there can be clauses for extra cost for rock excavation and other builder specific clauses. We recommend a review of the offer by your solicitor as a condition included in the Agreement of Purchase and Sale.

•If you are purchasing a new home for rental purposes and not owner occupied there are different considerations with respect to HST. Visit the realtysource.com Buying Guide online for more information or ask your representative for details.

The best part of new construction is the word “new” and the ability to potentially customize and decorate to your specific tastes from day one. Landscaping is typically an additional cost for you after move in date and is an expense factor to consider when comparing new to resale.

RESALE HOMESResale Homes refers to any home that has been lived in. It

Continued on Page 8


could be an original Victorian home or it could be less than a year old. Some resale homes are still covered under Tarion and are rarely subject to sales taxes. Some buyers look for homes to renovate and enhance the value while other buyers prefer as minimal work as possible. It can be beneficial to make a list of your preferences for locations, styles, and features so that we can analyse with you the pros and cons of all the factors.

One of the biggest benefits of resale homes can be buying in an established neighbourhood, with mature trees, schools, established bus routes, etc. However, the more mature the neighbourhood, the older the home and potential problems with the furnace, shingles, windows, etc., so a solid review is advised. Some sellers will elect to fill out a Seller Property Information Statement (SPIS), which is a three or four page questionnaire, filled out by the seller, based on their first hand knowledge of living in the property. Buyers are encouraged to read the SPIS carefully and make any further inquiries if they are uncertain or doubtful about any of the responses. If a home has been renovated, it’s good to ask about the extent of the work, who completed the work and if there are any extended warranties (roofing shingles and windows are typical upgrades that may have assignable warranties).

CONDOMINIUM LIVINGA condominium is designed to provide a more carefree lifestyle while still enjoying the benefits of home ownership. Most condos in the Kingston area are townhouses or apartments. As the purchaser, you own your unit outright, usually from the interior walls to the attic and the basement where applicable. The condominium corporation, and non-profit corporation owned collectively by the condo owners, is responsible for everything outside of the individual units. The condo corporation elects a board of directors made up of the owners and a property management company is retained to oversee the on-going maintenance of the condominium. The condo corp. is responsible for collecting monthly condo fees, which are used to operate and maintain the buildings and common areas. Common areas are available for all owners to use and can include driveways, sidewalks, hallways, party rooms, swimming pools, elevators, etc. Condominium owners may also have exclusive use common areas, which are elements owned by the condo corp. but available only to specific users. These are most often balconies, yards, decks, parking spaces, etc.

If you’re submitting an offer on a condo, you are encouraged to purchase a status certificate (usually $100) from the

property manager which will outline the financial standing on the condo corp. If the corporation is running out of money, they may not be able to afford new roofing, re-paving the parking lot, property management fees, etc. If they run out of money, the corporation can issue a levy on the owners, effectively raising your cost of living and negatively affecting your resale values. This document also contains the rules of the condominium; such as whether or not you can park a boat in your driveway, install a satellite dish on your balcony, what colour door you can have and more. Your lawyer will review the status certificate with you to ensure that your buying into the right property.

RURAL HOME PURCHASERural living offers fantastic appeal to many buyers. Land is usually cheaper, comes in larger parcels and you are afforded a quieter and more private lifestyle. The purchase of a home in the country presents a whole list of additional concerns however, but with due diligence you can make your decision with confidence.

Most rural properties are connected to their own well and septic system. As your representative, we will help you through the following:

1) Having the septic tank pumped and inspected during the conditional period.

2) Asking for documents related to the installation of the septic system and the well.

3) Every country purchaser wants to know the quality of the water and how much water is available. This is often measured in Litres or Gallons per Minute (LPM/GPM). Having a well water professional perform a pump test takes about an hour and usually costs in the neighbourhood of $225. We recommend having this done prior to your home inspection. Testing the quality of the water is a free service provided by the local health authority and typically takes 3 days. Your sales representative will be there with you to ensure a proper sample is taken and that it’s delivered to the lab on time.

The review of the status of the well and septic of your country home cannot be understated, however it is equally important to understand the zoning and surrounding land uses. For example, if you are planning to use your land for horses or other animals, different townships have different rules as to how much land you need to have for pigs, chickens, etc. Surrounding properties may be used presently or in the past for mining, waste disposal, large farms, etc.


Continued from Page 7Finding The Right Home & Helpful Considerations


The Cost Of Living... How Much Can You Afford Each Month?Let’s face it: Home ownership is not just the cost of the mortgage. There are so many more factors to consider.

Start with drawing up a budget specific to your needs and assets. No two families live the same way and no two people budget the same way either. Two home owners with identical incomes will not necessarily spend the same amount of money or choose the same accommodations. Priorities, as well as individual needs, can differ and you need to examine how much more you would be willing and able to pay for something new.

It’s important that you are honest with yourself. If you want something more expensive, it may put a strain on your budget and you may have to change your lifestyle to accommodate the extra carrying costs. An average family should not spend more than 25% to 35% of its gross income on housing.

For a home that carries a mortgage, this figure should include payments of principal, interest and property taxes. For rental housing this figure should fully cover your rent. And there

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are other expenses such as water, heating, electricity and insurance costs. You also need to budget for any renovations you want to do, plus a contingency plan if you require a new furnace or shingles.

The following form will help you to calculate the maximum amount you should be spending on accommodations each month. Once you have calculated how much you can afford to pay each month, you can start looking for the home that both suits your needs and that will also be affordable.


Choosing The Right Mortgage For YouThere are different types of mortgages offered by lenders in Canada. Each has its own advantages and disadvantages, depending on your situation and comfort level.

An “Open Mortgage” allows the flexibility of prepayment. You can pay part or all of the balance owing without any type of interest penalty.

A “Closed Mortgage” keeps payments unchanged for the duration of the loan period. It provides payment stability but penalizes a mortgagor who wishes to terminate the mortgage earlier. Each institution will have its own repayment options and policies. Most offer some type of extra pre-payment option that allows you to make extra principal payments to pay off your mortgage faster.

A “Variable Rate Mortgage” changes based on the banks prime rate and therefore fluctuates with the financial markets. It offers the advantage of lower rates if mortgage rates decline but as the name implies varies if rates do increase, options may exist to cap the increase over the term.

A “Fixed Rate Mortgage” keeps the mortgage rate the same throughout the life of the mortgage even if

rates rise. If rates go down, a fixed rate mortgage may prove to be more

expensive than a variable rate one. The terms can range from six

months to ten years.

A “Conventional Mortgage” is a loan up to 80% of the appraised value or purchase price of the property, whichever is less. The remaining amount comes from the borrower’s own resources and is known as the down payment. Mortgages that exceed this limit by law must be insured against default, and are referred to as “High Ratio Mortgages”.

A “High Ratio Mortgage” is used for loans that exceed conventional mortgage lending guidelines (where down payment is below 20% of purchase price). These mortgages are granted under the National Housing Act (NHA) and must, by law, be insured against default through Canada Mortgage and Housing Corporation (CMHC) or Genworth Financial Canada (GENWORTH). The borrower will have to pay the insurance premium, which can range depending on the total mortgage amount. Typically, the insurance premium is added to the principal amount of the mortgage.

You will likely be offered life insurance on the mortgage from the lender. Although these are often inexpensive and convenient, they are very basic and may not pay out in certain situations. They are normally owned by the lender itself, not you, as the buyer, meaning your mortgage will be paid, with little or no additional expenses. It also maintains its value with the value of the mortgage itself. Be sure to look into other life insurance products that may be offered by your financial advisor, which are typically arranged more in your favour to cover a variety of scenarios. They maintain their original value, so if your policy is for $200,000, it will still be worth that in 10 years, regardless of how much your mortgage is worth.

Buying, Building, Selling, Renewing or Refinancing

Call me for your free no-obligationappointment today! Joe Cifala

Home Financing Advisor

Kingston and Surrounding Area

[email protected]

™ Trademark of The Bank of Nova Scotia. ® Registered trademark of The Bank of Nova Scotia. All mortgages subject to certain credit criteria, the home meeting Scotiabank residential property standards and maximum permitted loan amounts.


How much will your monthly mortgage payments be? Determine monthly payments for 10 to 25 year fixed rate mortgage loans by using the following Loan Amortization Schedule to estimate your monthly loan repayments.

Multiply principal amount of your mortgage (in thousands) by monthly payment factor in appropriate amortization period, opposite your mortgage interest rate.

For a mortgage amount of $100,000 amortized over 20 years, at an interest rate of 4.75%, the mortgage payment, per month, would be calculated as follows:

$100,000.00 = 100 x 6.43 = 643.00/month.

How To Calculate Mortgage Payments

2.00 9.20 6.44 5.06 4.24 2.25 9.31 6.55 5.18 4.36 2.50 9.43 6.67 5.30 4.49 2.75 9.54 6.79 5.42 4.61 3.00 9.66 6.91 5.67 4.87 3.25 9.77 7.03 5.67 4.87 3.50 9.89 7.15 5.80 5.01 3.75 10.01 7.27 5.93 5.14 4.00 10.11 7.38 6.04 5.26 4.25 10.22 7.50 6.17 5.39 4.50 10.34 7.62 6.30 5.53 4.75 10.46 7.75 6.43 5.67 5.00 10.58 7.88 6.57 5.82 5.25 10.70 8.01 6.71 5.96 5.50 10.82 8.14 6.84 6.10 5.75 10.94 8.27 6.98 6.25 6.00 11.07 8.40 7.12 6.40 6.25 11.19 8.53 7.26 6.55 6.50 11.31 8.66 7.41 6.70 6.75 11.43 8.80 7.55 6.85 7.00 11.56 8.93 7.69 7.00 7.25 11.68 9.07 7.84 7.16 7.50 11.81 9.21 7.99 7.32 7.75 11.94 9.34 8.13 7.47 8.00 12.06 9.48 8.28 7.63

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Home Shopping? Put RealtySource To Work For You

We have worked hard to compile accurate and up-to-date resources designed to help you with finding the right home, and we welcome the opportunity to put our skills and knowledge to work for you.

It goes without saying that the Internet is a very powerful tool in your home search. A quick visit to www.realtysource.com will give you access to all of our current listings, details on our new home builders and information on our agents and support staff. You can also sign up online or over the phone with one of our representatives to receive new listing updates via email, a system that works 24/7 searching for your home across the MLS® System.

RealtySource representatives are equipped with smartphones and strive to be available to respond to your inquiries in the most expedient manner possible. We will show you as many homes as necessary to find the right one. We can do a dozen houses a day or go one-by-one over a period of time – whatever it takes! In most cases, we are paid by the seller, so our services come at no extra cost to you! Don’t feel guilty about calling us on evenings or weekends ... it’s all part of the job and we’re quite glad to make sure you are comfortable and taken care of throughout the whole process.

www.realtyso

urce.com



Found the right home and are ready to make an offer, we recommend a Pre-Offer walk through to make sure we have done a solid review prior to making an offer that includes:

EXTERIOR WALK AROUND Walk around the home paying attention to foundations cracks, windows, shingles and other major repair items. If there is an exterior garage, look for whether power openers are there (you will want to include these). The exterior walk around may reveal propane tanks for the fireplace or furnace; if so, these are rental items and need to be referenced as such within the offer. Also look for outbuildings and improvements that may be questionable chattels and make notes.

INTERIOR WALK THROUGH The best way to picture a home prior to making an offer is vacant with the owners items removed. Some items may cause damage upon removal and some items may represent questionable fixtures. The offer and all terms associated with the offer must be in writing. When in doubt, clarify in writing the status of any chattel or inclusion.• START DOWNSTAIRS Look for what stays and what you

may want to be gone (i.e. an old freezer and/or large workbench – make sure to exclude items you don’t want to see in the home). Rental Equipment – look for items that are potentially rented to include in the offer. Fixed or not fixed items… the solid wood bar may not be fixed or stay.

• MAIN FLOOR Kitchen appliance inclusions (dishwasher, built-in microwave range hood, etc.) and exclusions, make and location of. Look as well at built-in shelves and items attached to the walls that may be removed, window coverings, area rugs (what’s underneath).

• UPPER FLOORS In addition to main floor review points for fixed shelves, make sure bathroom mirrors are either fixed or hanging (hanging mirrors are chattels).

• GARAGE Check for garage door openers, shelving that you may want to stay or be removed, central vac (type).

• WOOD APPLIANCES OR PELLET STOVES, FIREPLACES Note need to have a WETT Certified Inspection completed to ensure these appliances are suitable for insurance purposes and for your own safety.

ADDITIONAL GENERAL ADVANCE OFFER REVIEW POINTS

1. Copy of SPIS (Seller Property Information Statement),

this document includes the Sellers answer to a list of questions relating to the property and may or may not be available.

2. Copy of Survey, if available3. Related Documents (rural property well water record -

pump flow rate, septic use permit, etc.)4. Use - does it conform to the area, zoning, etc. in

relationship to buyers intended needs; discuss issues. 5. The legal description check, as most properties are now

on an electronic database we can double-check the legal description and for that matter, surrounding ownership and area for you. This is a good way to see if easements possibly not noted in the listing are present and to double-check area and ownership information. Your RealtySource representative will assist with this for your review.

6. Curious about recent sales? We can print off for your review recent sale prices to assist you in deciding on an offer price.

7. What will it cost to purchase? A good discussion of closing costs etc. is worthwhile here as in addition to the down payment you will have to pay any pre-paid taxes, legal fees, land transfer tax and other costs related to closing. A good ball park number for estimating closing costs is between 2 to 2.5% of purchase price but this should be reviewed with your representative.


Found The Right Home…Let’s Take a Second Look

The Down PaymentThe down payment on a home is the amount of your own money that you put into the purchase of the home. This, together with the mortgage, equal the full purchase price.

Although the CMHC had previously allowed a zero down payment option, the minimum down payment currently required is 5% of the purchase price and any down payment less than 20% of purchase price is considered a High Ratio Mortgage. Some Lenders do offer 5% cash back mortgages or the opportunity to borrow from a family member a gift loan towards your down payment, subject to mortgage package and approval guidelines. Down payments lower than 20% of purchase price are considered High Ratio Mortgages and are subject to mortgage insurance fees (CMHC or Genworth) which are typically added to the mortgage principal. Deciding how much to put down is part of a review of your overall budgeting process.

While the down payment is the biggest cash aspect of most purchases, don’t forget to budget some extra cash for legal fees, Land Transfer Tax, moving expenses and other incidentals.


When purchasing home insurance you want to make sure you purchase a policy that reflects the unique qualities of your home, its contents and the people who live there. Your home should be insured from the moment your take legal ownership – even if it is under construction. Your broker’s expertise is particularly useful at this stage when you really need to match policy features and needs.

HOME INSURANCE COVERS THE BUILDING, ITS CONTENTS AND LIABILITYThere are usually three parts to your homeowner’s policy:

1. Building insurance covers the main dwelling, garage and any outbuildings. Guaranteed replacement cost is offered on many policies and may be a requirement of your mortgage. Ask your broker for more information.

2. Contents insurance covers the cost of replacing furniture, carpets and personal possessions. Valuables such as art, jewels and furs may require additional coverage.

3. Liability polices insure against the costs incurred if, due to negligence, you are held responsible for an act causing injury or property damage to others.

WHY USE A BROKER?In Canada, you can purchase insurance a) directly from an insurance company; b) from an agent who represents only one insurer and can only offer that company’s products; c) on the Internet; d) through an insurance broker who can offer a choice of coverages from various insurance companies.

Home Insurance... Property Insurance Done Properly

PEACE OF MINDWith over 200 companies providing insurance to consumers in Canada and each offering its own unique coverage, comparing products can be a time-consuming job. A knowledgeable insurance broker can help you find the coverage that’s right for you, for your home, car or business.

Insurance brokers are licensed, but for many of them, insurance is not just a business, it’s a “calling”: a deep-rooted desire to help people in their community. Brokers also advocate on your behalf to insurers, regulators, and government to ensure affordable insurance, choices and innovative products.

Is your home insured properly?844 Gardiners RdKingston, ONK7M 3X9www.kingstoninsurance.ca

(613) 634-8111Call us for your FREE no-obligation quote today.

On your side.Your best insurance is an insurance broker.

Title InsuranceA title insurance policy offers you many benefits:

• Eliminates the need for an up-to-date survey, real property report or building location certificate (“the survey”), while covering you against any defects that might have been revealed had one been obtained.

• Covers you against errors in surveys and other official public records or documents related to your property (i.e. registry/land titles offices, local municipal offices, and tax departments.)

• Protects you in the event of encroachments onto a neighbouring property, zoning infractions, contravention of subdivision, development and other agreements.

Your lawyer can obtain a title insurance policy on your behalf prior to the closing date. Once a policy is issued and you take title to the property, your Title Insurance Company that holds the policy assumes the risk for all covered problems, protecting your right to the property as long as you own it.

Our top 10 resale home buying tips

1. First and foremost, take a moment and work through a needs analysis of both home and area. Look to both your short and long term needs for both home and surrounding community. We have a great form to help you here... visit our website or ask your sales representative.

2. future and present. Spend time on your budget and set yourself a price range to start your home buying review that works for you. Budget for closing costs from land transfer and legal fees to adjustments for pre-paid taxes, title insurance and more (good rule of thumb around 2% of the purchase price).

3. Meet with one of our sales representatives before you start touring homes. We can do so much in a home review meeting... show you comparable sales, active properties, area trends and features… better still, we can listen to fully understand your needs.

4. Evaluate home and neighbourhood from pending developments to amenities and features that are im-

5. Picture the house you enter empty. This is how it will be delivered to you, so take a moment and picture

6.

that extra attention to detail that a major purchase demands. 7.

Home sellers do this and so should home buyers... we are here to help.

8. If you are renting, do not set your closing date for the day you have to move… why add the extra pres-sure? Set this a few days before so you can move in at your leisure. Also keep in mind that closing day requires transfer of funds prior to title, this does not occur at an exact time of day. Discuss this with your lawyer and coordinate your move accordingly.

9. -

one needs a last minute surprise on moving day.

10. Before closing, have utility arrangements in place and pre-consult lawyers, lender and insurance to be sure everything is ready for closing date. We will be in touch prior to closing to complete a pre-closing

© RealtySource Inc., Brokerage.


Put our new listing update program to work for you!

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3. Submit form and new listing updates will be working for you 24/7

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Preview RealtySource.com & search builders to see what’s new.

Builders shown actively marketed by RealtySource Inc. as of June 2013. Subject to change E. & O. E.

What’s your home worth?

A powerful marketing program working for you

Curious about market value of your property? We are here to help! Contact your RealtySource representative to arrange a complimentary opinion of value. We will review your property and prepare a summary overview including information on comparable sales and actively marketed properties.

Full MLS® Marketing including multiple web site marketing promotion.

Leading edge web site Realtysource.com powered by a powerful SEO & web marketing program.

Full colour high profile print marketing program working for you.

Full colour PDF Feature Sheet working online and in your home.

Professional real estate sign & high profileopen house promotion online, in print and on site sign including pre-promotion.

Smart phone equipped, connected and responsive professional representation.

And so much more!

Not intended to solicit buyers or sellers currently under a contract with a real estate brokerage. REALTOR® and MLS® trademarks are owned or controlled by the Canadian Real Estate Association (CREA) used under license. Material contained herein is subject to change and future updates without notice E. & O. E.


Choosing A LawyerAs with every other aspect of your home purchase, you will require the services of a professional to handle the legal aspects of your purchase and mortgage financing. The lawyer will act on behalf of both you and your mortgage lender to “close” the real estate and mortgage transactions. Look for an experienced solicitor who practices primarily in the real estate field, as he or she will be knowledgeable about title, easements, boundary definition, planning by-laws and subdivision regulations. Such a lawyer can spot issues and protect your interests, including anything that is important to you which you may wish to remain private and confidential and which need not be shared with the other parties to transaction.

The lawyer will search the title, order the survey and prepare tax and other items related to the statement of adjustments, look for liens, advise you on any restrictions which would affect your enjoyment of the property and generally oversee most aspects of your purchase.

It is important to communicate with your lawyer prior to closing and to inform your RealtySource Representative as early as possible who your lawyer is so that all documentation can be forwarded to your lawyer to prepare for closing.

REAL ESTATE PURCHASES • SALES & MORTGAGESWILLS & ESTATES • POWER OF ATTORNEY

Telephone: (613) 544-0644 • Fax: (613) 544-2197Email: [email protected]

P.O. Box 1403, 338 Montreal St., Kingston, ON K7L 5C6

WM. J. F. (Bill) BishopBarrister & solicitor

Buying a new home can be the best financial move you can make. Buying a home is an big investment, and one that usually pays off.

Two key issues in the purchase of a new home are deciding how much you can actually afford and how to finance your home.

Home values are on the increase. And most buyers who purchase early in the development of a community or subdivision see an increase in the value of property by the time the community is sold out.

Home Buying... A WISE INVESTMENT?

Commercial DivisionWe provide results and solutions for commercial properties, leasing opportunities and sale of business. Buying or Selling, we welcome the opportunity to earn your business. Please call for a professional assessment and a confidential appointment.

RESULTS DRIVEN REAL ESTATE


Before making an offer there are typically several forms to go through. Your RealtySource representative will go over each one with you in detail so that you understand all of your options, obligations, and conditions. They include:

1. The Confirmation of Co-operation & Representation which explains the agency relationships to this specific offer and discloses any commission being paid where necessary.

2. The Deposit is cashed and held in trust typically by the listing brokerage upon acceptance. Note if your offer contains conditions and they are not met, the Seller and Buyer will need to sign a mutual release and the deposit will then be returned following a minimum 10 day clearing rule. The deposit is held in trust until closing and adjusted as part of your prepayment of purchase upon closing.

3. An Agreement of Purchase and Sale will be signed, outlining the purchase price, deposit amount, important dates and time frames, specifics of zoning, and a list of conditions and additional terms to purchase. This is typically done on a standard Ontario Real Estate Association offer form.

4. There are always three options when buyers or sellers are presented with an offer. It can be accepted, rejected, or countered (changing any of the terms).

All offers contain what is referred to as an irrevocable period, which essentially states how long the offer is open for acceptance. Once this irrevocable period has passed, the offer cannot be accepted. If the seller decides to make a counter offer, the offer will be turned back to the buyer. Once offering terms (from either Buyer or Seller) are accepted within the irrevocable time period for acceptance in writing, we have an accepted offer.

5. Two key terms in the Agreement of Purchase and Sale are ‘chattels’ and ‘fixtures.’ Chattels are any items not physically attached or fastened to the house, such as washing machines, stoves, couches, rugs, etc. Fixtures are attached to the house in some way, such as mirrors (unless mirrors are hanging), ceiling fans, alarm systems, etc. Be clear on what items you want to ask for, or anything that you specifically want removed.

6. A verbal agreement is worth as much as the paper it’s written on. In real estate, any agreements, clauses, conditions, etc., must be in writing only. Timelines are also essential. We take great care to ensure that all timelines in your offer are reasonable so you can comfortably make your decision. Failure to meet these timelines, or to confirm your progress in writing, can jeopardize the offer.

7. The conditions of your offer, such as approval of financing, satisfaction with the home inspection, review of pertinent documents, the right to preview the property in advance of closing and more are absolutely essential for you to feel comfortable with your purchase. Over the years, we have taken great pride in creating conditions that cover a range of brokerage recommendations that protect our clients and clearly outline the terms of the agreement of purchase and sale. The sale of real estate is by no means static so we continually improve our clauses and training to keep up to date on industry matters related to the sale of real estate.

8. Your RealtySource representative will place a list of standard conditions within the agreement designed to highlight the items to be reviewed during the conditional period, like confirming insurance, etc. We highly recommend reviewing these points to avoid surprises prior to removing your conditions including having a professional home inspection completed to better understand the property being purchased.

The Offer Process

Continued on Page 20


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Once an Agreement is accepted and the conditions are met, you will have a firm and binding agreement to purchase the property. On your behalf, we will forward copies of all paperwork to your solicitor. Most lawyers will have you in to sign paperwork well in advance of closing to avoid delays on moving day so be sure to book a time in advance of closing to meet!

Plan out your day of closing to minimize stress. If you are moving on the same day as you take possession, be prepared to not get your keys until late in the afternoon, which could cost you extra money if you’ve hired a moving company. If you are renting, it’s best to set your closing date a few days before you have to move out of your rental to avoid the added stress of moving in and out the same day. Double check with your lawyer and lender to ensure that all funds will be transferred on time. Lastly be sure to do a pre-close walk through prior to closing to ensure that your property has been maintained between the time of purchase and closing.

We are here to assist you every step of the way and to ensure you are completely comfortable and confident in your decision. You can contact us anytime throughout the process with questions or concerns.

Sign-up Today For Our New Listing Update ServiceShopping for the ideal property? We are here to help and here is a great service that we can put to work for you.

Simply email your search criteria to us, sign-up online at RealtySource.com or speak to one of our representatives today and ask to be signed up for “New Listing Updates”. We can set your search criteria as limited as just one street or as broad as the entire market. This program searches the MLS® System for matching properties and sends you regular email updates.

When you find the right property or properties, just let us know and we will arrange a tour of homes. Want a great way to follow the market for your ideal home? Let’s get started!

Your

Sou

rce

for R

eal E

stat

e!“Excellent ser vice, always available to answer our questions, returned our calls promptly and provided 100% plus in courteous ser vice. Thank you so much.” Donald and Sandra

“We are very happy with our recent purchase and cannot wait until our closing date.” Dan and Kim

“Integrity. It’s nice to see a company who remembers the customer is number 1 and not profit. I would definitely rec-ommend RealtySource to anyone selling or purchasing a property. And I will use their ser vice again!” Cindy

“Our agent was great. Showed up on time, had great Open Houses and saved me a pile of money. Thanks RealtySource.” Gale

“We are happy to obtain our price and glad that selling went so quickly and well.”

David and Pauline

“Ser vice was great. Great Company. I like the correspondence you sent out just after listing our home. Have never received from other companies.” Tom and Shelley

“Don’t fix something that ain’t broke! Keep up the good work.” Ken

“Keep doing what you are doing!” Jana

In our clients own words...Sign-up Today For Our New Listing Update Service



SELLING A HOME

Continued on Page 23

As professionals in the real estate field, we have a lot of experience in maximizing your properties presentation value. When the time comes to consider selling, give us a call before you begin the process of preparing your house for sale so we can give you advice on what’s important and what’s not. We can help you save money, enhance the value and presentation of your home to potential buyers. The most important rule of all is that you want the broadest appeal to attract as many potential buyers as possible and we’ve compiled a few pointers to get you started:

• First impressions are critical. Keep your driveway, lawn, porch and front entrance in top condition. Fresh paint on the front door and some basic landscaping in the front yard can be a worthwhile investment.

• Less is more when it comes to the interior. Cluttered countertops, huge furniture pieces, busy wall decorations can detract from the features of the home itself. Personal photos, eye-catching artwork or tacky knick-knacks will draw the buyer’s eyes to those items, not the room size or the hardwood floors.

• A fresh coat of a complimentary paint colour can cover up finger prints, scratches and otherwise revitalize a tired room. However, a poor paint job can cause the buyer to worry about the overall quality of work in the whole house, so hire a pro if necessary.

• Well-lit rooms are key, especially on dark winter evenings, so ensure enough lights are on and all light bulbs are working. During the day, open your curtains wide and let the natural light in.

• Kitchens and baths are huge selling points to many buyers, so take extra time to make these areas shine. Cabinets, countertops, sinks and other surfaces should be spotless and free of clutter. Double check your plumbing for any loose components or leaks. Remove as many magnets and pictures from the fridge as possible. In the bathroom, make sure you have a clean shower curtain and matching rug, and check the caulking around the tub and sink and repair as necessary. A plant with style coordinated vase can have a real positive impact to your kitchen or bath.

• Ask a friend or neighbour with a good nose to walk through and check for any unusual smells. We often don’t notice the smells in our own home, so a second opinion is wise. Musty basements can be fixed with some fresh air and a dehumidifier. Simple air fresheners

throughout are good too, but don’t be overpowering as it may be overwhelming to some buyers.

• Cracks in your basement floor are quite common but can still make some buyers uneasy. A small patch job and proper flooring paint will greatly enhance the presentation of unfinished areas in the basement.

• If you are listing during the winter, keep your driveway, all walkways and access points clear of snow and de-iced for convenience and safety.

• Dirty furnace filters look terrible and raise questions about the added stress on the furnace and the overall maintenance of the house. Make sure yours is clean before you go on the market. If you have an HRV unit, make sure those filters are clean as well.

• Lock all valuables away for showings and open houses.

Your RealtySource representative will review all aspects of presenting your home with you before your property goes on the market. We will also track feedback from all showings and open houses so you can understand what prospective buyers are saying about your house!

REALTYSOURCE AT WORK FOR YOUSince 2004 RealtySource has openly offered Sellers exceptional real estate service and so much more at an open commission rate offer of 3.5%. Our goal is to be your source for real estate by raising the bar in the delivery of full service real estate. We offer:• Full Multiple Listing Service® (MLS®) exposure• Strong internet presence with www.realtysource.com,

www.realtor.ca, and a host of other internet web sites working to connect our real estate sellers with prospective buyers

• Full high profile colour print advertising of your property • Full colour feature sheets of your home online (PDF

Ready) and in your home• Quality, seasonal photographs of your property for feature

sheets and websites • Professional graphic designer support for our marketing

programs

Preparing Your Home For Sale


SELLING A HOME

HOME INSPECTIONS LTD.

Serving Kingston, Gananoque, Brockville and Surrounding Areas.

613-544-2949Mike Schur • Cell: 613-539-8425 • E-mail: [email protected]

ONTARIO ASSOCIATION OF HOME INSPECTORSAssociate Member

The best part of a home inspection is that it helps you make a more informed choice about your major investment. Your attendance at the home inspection is paramount, the home inspector is working for you and there is nothing better than a direct exchange of information between you and the home inspector to achieve this goal.

A home inspector conducts a visual inspection of the structure and the major systems of the house and provides you a professional, unbiased opinion of its condition. There is a separate contract between you and the home inspector related to the limitations of the inspection. A home inspector may recommend additional reviews by specialized trades to assist your review.

WHO DOES THE INSPECTION?Most people don’t have the experience to evaluate the structure and systems that make up a home. That’s why prospective buyers hire a professional home inspector. Many people have knowledge about some house systems, but few have the broad knowledge, experience and diagnostic skills of a professional home inspector. Even if you are knowledgeable about all aspects of houses, it is probably best to have someone else do the inspection for you. A professional home inspector will not be emotionally attached to the home.

What Is A Home Inspection?WHAT GETS INSPECTED?A home inspection includes:• Structure • Plumbing System• Exterior • Electrical System• Insulation • Interior• Basements • Heating System• Air Conditioning or Heat Pump System • Roofing, Flashings and Chimneys

WHAT DOES NOT GET INSPECTED?• A home inspection is designed to give you the “big picture” and help you make an informed buying decision. As a result, the home inspector will not be looking at minor details like torn wallpaper or scratches in floors.

• A standard home inspection generally does not include appliances.

• Low voltage systems such as telephone wiring, cable television, alarm systems, etc. are generally not inspected.

• Septic systems, wells, central vacuum systems, and sometimes fireplaces or wood stoves (depending if the inspector has WETT training) are usually left to professionals in those fields.

• A professional real estate lawn sign with direct agent contact information

• Direct cell phone to agent contact - no paging and waiting for return calls. All agents are smartphone equipped so we can serve our clients quickly and efficiently!

• Prescheduled Open Houses • Helpful hints to get your home ready to sell

• Regular updates after all open houses and other showings with feedback

• And so much more including no fine print conditions or gimmicks on our 3.5% offer to you!

When you’re considering selling your home, call RealtySource to arrange a no obligation meeting, we are here to earn your business! Copyright RealtySource Inc.


SELLING A HOME

DON'T FORGET TO CHECK IT OFF!

Bank Broker Cable/Entertainment Canada Pension Credit Cards Daycare Service Dentist

Doctor Driver’s License Employment Insurance Family Allowance Finance Companies Fuel/Propane Gas

Remember To Notify

AIR CONDITIONING & HEATING SYSTEMS

• Installation• Sales • Service• Commercial • Residential• Propane• Natural Gas• Electric24 Hr Service • [email protected] • www.glenair.ca

613-386-7004 • 613-561-2435

Preventative Maintenance Contracts To All Makes and ModelsServing Kingston & Region

Water for most rural properties comes from a well or, less frequently, directly from a lake or river. When you buy such a property you not only acquire a wonderful place to live but you also become responsible for the quality of your own drinking water. Since so much of your quality of life (and the resale value of your home) will ride on the quality of your water, there are a number of steps you should take before you purchase to help things work out smoothly.

Much as you would hire a home inspector to examine the physical state of the house structure, you should hire an expert to evaluate the water system. This should be a licensed well contractor who also has experience with pumps and drinking water treatment systems.

The first item requiring attention is the physical state of the well. Is it drilled or dug? Is it properly located to avoid septic systems and other sources of contamination? Is it above grade or buried?

Next is the yield of the well. Is it sufficient to support normal domestic use? Is the yield likely to vary based on the time of year? If the well is of recent vintage it should be possible to get yield information from the well record. If the well is older, a proper pump test should be performed to assess the yield. A proper pump test does not mean running a

hose for a few minutes. The well should be pumped for one hour and allowed to recover for a second hour with the level of water in the well being monitored throughout.

Once the well has been addressed, the pump and any existing water treatment equipment should be evaluated. The technician should be able to tell the approximate age of the equipment, whether the equipment is of good quality, and whether it appears to be in proper working order.

Finally, you may wish to undertake water sampling. This could be anything from a simple bacteria test to a fifty-parameter comprehensive analysis and anywhere in between. With very few exceptions the analysis should be performed at an accredited laboratory to obtain a meaningfully accurate number. After all, a result of 0.25 ± 1 is not very useful.

Once all the site work has been completed, you should receive a written report. This should include the calculations and yield from the pump test. It should include a copy of the lab results as well as an explanation of what these mean. Finally, the report should include recommendations and, ideally, costs. As a private person there are almost no laws governing the water you drink - it will be up to you to decide what to do but you should have as much information available as possible to help you make your decision.

Well Water & Your Home

Written by MacLellan Water Technology

Health Plan Hydro Income Tax Insurance Company Internet Provider Lawn/Garden

Services Lawyer

Library Mail Orders Magazines Newspapers Old Age Pension Pool Services Post Office

Property Tax Reg. Schools Telephone Unions Vehicle Water Water Treatment


SELLING A HOME

Jack, Wendy

& Staff

Jack ChongLawyers - Notary Public

Wendy O’Neill

(613) 549-1225REAL ESTATE • Wills • Power of Attorney • Estates

Canadian Forces Relocation Services for 39 Years

273 King St. East, Kingston, ON K7L 3B1 • Fax (613) 549-3882 • [email protected]

Moving In... How Much Is It Going To Cost?The following is a monthly budget plan that will help you calculate the cost of moving into a new home.

PRESENT MONTHLYEXPENSES

FUTURE MONTHLYEXPENSES

Mortgage Payment .........................

Property Taxes ...............................

Total Monthly Housing Expenses ..

OTHER EXPENSESOutstanding debts .........................

Food and clothing ..........................

Medical and dental expenses ........

Car payments and expenses .........

Transportation ................................

Clothing ..........................................

Education .......................................

Personal insurance ........................

Recreation and hobbies .................

Utilities ............................................

Insurance .......................................

Repairs ...........................................

Maintenance ...................................

Miscellaneous ................................

$ _______ _______$ _______ _______$ _______ _______

$ _______ _______$ _______ _______$ _______ _______$ _______ _______$ _______ _______$ _______ _______$ _______ _______$ _______ _______$ _______ _______$ _______ _______$ _______ _______$ _______ _______$ _______ _______$ _______ _______

$ _______ _______

$ _______ _______

$ _______ _______

Total Monthly Expenses

Total Monthly Income

Savings

Housing Expenses

HST & Real EstateOntario has implemented a Harmonized Sales Tax (HST), effectively combining the Goods and Services Tax (GST) with Provincial Sales Taxes (PST). In Ontario, the HST total is currently 13%.

First, the good news! You do not have to pay HST on the purchase price of a resale residential property (only limitation is if the home was substantially renovated). Revenue Canada defines “resale residential property” to include a previously occupied house, condominium, summer cottage, vacation property or non-commercial hobby farm. Land may also be exempt from tax.

New home purchases are subject to HST. However, if the home is going to be your primary place of residence, it qualifies for a partial HST rebate, indexed to sale price. Many builders include the Net HST in their purchase price to simplify the pricing for Buyers (this is almost an industry norm) and in turn have the buyer assign any rebates due over to the builder.

HST applies to most of the services provided in completing the real estate transaction including commissions, appraisal fees, surveys, home inspections, moving costs and legal fees. HST is charged on these fees regardless of whether or not the property is HST exempt. For additional information, you should contact your local Revenue Canada Tax Services Office and your accountant.


SELLING A HOME

Moving Day

A little planning goes a long way when its time to pack up and move!

• Arrange for the transportation of your household goods.

• Notify everyone of the date of your move and your new address.

• Arrange for transport of items that require special attention. (pianos, pets, etc.)

• Do an inventory of your home. Dispose of things you no longer need. Donate to charity or have a yard sale.

• Dispose of hazardous materials. (paint, thinners, gasoline)

• Hire a sitter for moving day. It’s going to be a hectic day.

• Pack seldom used items as soon as possible.

• Have appliances cleaned and serviced before the move. Don’t forget to defrost the fridge and freezer.

• Decide where you want furnishings placed in your new

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home and label them accordingly.

• Plan on being present at the loading and unloading of your belongings.

• Keep a record of all moving expenses for income tax deductions (if applicable).

• Have your car serviced and keep emergency supplies in the trunk.

• Make a last check of the house - closets, basement, garage, yard - make sure nothing is left behind.


SELLING A HOME

JUNK GETS IN THE WAY.But it doesn’t have to. Call 1-800-GOT-JUNK? and we’ll get rid of it for you. Just point to the stuff you want taken away and we’ll do all the loading, clean up and recycling so you can sit back and relax.

Call 1-800-468-5865 or go to 1800gotjunk.com to book an appointment.

Closing CostsNo one wants surprises on closing day so it is advisable to budget in advance. Although discussed in greater detail elsewhere in this guide, here is a quick overview of expenses you should budget for:

DOWN PAYMENT: A minimum 5% is required.

DEPOSIT: Payable when an offer is accepted and credited towards your purchase price on closing day.

HOME INSPECTION: Most inspectors charge $350 plus HST, but that can depend on the inspector and the property.

WATER/SEPTIC/FIREPLACE: If you’re purchasing a property with a well, septic system, or fireplace, you may need to pay a professional to take a look before you waive your conditions. In most cases, we ask the seller to pay for pumping the septic system and ensuring the code compliance of any fireplaces or wood stoves, but as the buyer you should plan on paying about $225 for an hour-long pump test of the well and more for additional chemical analysis (Ministry of Health Water Testing is a free service).

TARION: If you’re buying a new home, the cost of the Tarion warranty is paid by the buyer and usually $600 - $800, depending on the sale price of the home.

ADJUSTMENTS: If you are buying a home in February, and the seller has paid their property taxes until June, they will want reimbursement for the prepayment of property taxes. Your lawyer will calculate this amount exactly. If you’re buying a property with an oil tank, the seller is to have filled the tank before closing, you will be billed for this amount. These are the most common adjustments payable on closing.

LAND TRANSFER TAX: This amount varies depending on the purchase price. If you are a first time home buyer, you can receive a rebate of up to $2000 of this tax. Land transfer tax is calculated as follows:

STATUS CERTIFICATE: If you’re buying a condo, you’ll need $100-$125 for a status certificate outlining the rules of the condo and its financial standing.

COMMISSION: Although rare, there are some scenarios where the buyer will be responsible for real estate commissions. Typically the commission is paid by the seller.

LEGAL FEES: Real estate lawyers have many hard costs when they process a purchase. This includes searching title, transferring the deed, title insurance and more. The lawyer’s fee varies from firm to firm. Budget for around $1200 for this. If there are complications, the lawyer may charge a higher fee and will advise you accordingly.

CMHC AND OTHER MORTGAGE FEES: These will often be included in the amount you borrow. Your mortgage broker or bank representative will advise you accordingly.

MOVING COSTS: This will depend on whether you rent a truck or hire movers and also how much stuff you have!

Explanation

amounts up to and including $55,000

amounts exceeding $55,000 up to and including $250,000

amounts exceeding $250,000

amounts exceeding $400,000 where the land contains one or two single family residences

Percentage0.5%

2.0%

1.5%

1.0%

AccommodAtions: Ambassador Hotel & Conference Centre ...............613-548-3605

Flooring:Kingston Carpet World ......................613-549-7847

HeAting & Air conditioning:Glen Air Air Conditioning & Heating Systems ..613-386-7004

Home inspections:Mike Schur Home Inspections Ltd ......613-544-2949

This publication was designed to help you

with the purchase and/or sale of your home.

DL Advertising Inc. has made a sincere

effort to ensure the accuracy of all the

material provided; however, we assume no

responsibility whatsoever for the use made

of this material or any decisions based upon

its use. DL Advertising Inc. shall not be liable

for any reason.

M06Y13

Produced By:

phone 613.394.0059tf 1.800.305.2044 fax 613.394.6188

email [email protected] www.dl-ads.com

284 Front St.Trenton, ON

K8V 4P3

insurAnce:Insurance Speciality Group ................613-634-8111

Junk removAl:1-800-GOT-JUNK? ..............................800-468-5865

lAwyers:William J.F. (Bill) Bishop Barrister & Solicitor ........................613-544-0644Jack Chong/Wendy O’Neill Lawyers ...613-549-1225Nelson, Wilson John R.A. Wilson, B.Sc.,(Hons.), LL.B. ......613-544-1618Yuri Tarnowecky, Barrister & Solicitor .........................613-384-2354

mortgAges:Scotiabank, Joe Cifala ........................613-483-4583

moving & storAge:Frank’s Worldwide Moving ...............613-546-1828

tree service:Timber Tree Service............................613-544-8733

wAter treAtment:Professional Pumps & Water Treatment ............................613-561-7867

well drilling:Jack Knox Well Drilling Ltd. ...............613-546-6164

JACKKNOX

ROTARY & CABLE TOOL WELL DRILLINGWELL DRILLING LTD.

613-546-6164 Ron Knox/ John KnoxBox 33, Glenburnie, ON K0H 1S0

PEOPLE TO CALLReal Estate Buyer’s & Seller’s Guide


Relocating,Purchasing

or Refinancing?Count on me for home

mortgage options.

Give me a call for a No Obligation consultation

Joe CifalaHome Financing Advisor

[email protected]

Real Estate Buyers and Sellers Guide - Homes For Sale | · PDF file ·...

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Transcript of Real Estate Buyers and Sellers Guide - Homes For Sale | · PDF file ·...