How To Buy Property In Toronto

August 30, 2010

Home For Sale  Mullen Dr VaughanWhen you are going to buy property in Toronto, you will have to find a buyers agent to help you during the process of finding the ideal property to meet your needs. You will need to ensure that he or she is someone that you are comfortable with and that you can trust. Only after conducting various interviews with buyers agents will it be possible to highlight the one that you prefer and that you believe will correctly represent you to buy condominium.

Before your real estate agent conducts any research in the area, he or she will present you with an information pamphlet known as: Working with a Realtor. This information pamphlet does not have any binding agreement and is only issued to buyers so that they can familiarize themselves with the whole process of working with a buyers agent. The binding agreement that you will sign between yourself and the real estate agent is known as Buyer Representation Agreement. This is the legal biding agreement that limits you to the Realtor that you choose. Always check to ensure that the real estate agency that the Realtor works for has not placed any clauses in the contract that ties you to that particular agent irrespective of your satisfaction and his is her working performance.

Many people tend to look at condo, houses, cottages and building that they are interested in before they actually research about their own financial capabilities to secure a mortgage from a financial institution. This should not be the case and instead of waiting to see if you qualify for financing you should check to see this aspect of your financial life first before you look for any type of property in Toronto. This will not apply if you are able to pay in advance and do not need financing to buy property. If you are a first time home buyer, then use this advantage to secure the many benefits that the Government has opened to first time home buyers.

Once you know how much you will likely pay for mortgage and how much the financial institution is willing to lend, then the buyers agent that you hire will perform a MLM search to identify property that could be of interest to you. The MLM search will narrow down all the houses that are in a particular area and will provide basic details about different types of houses that you could be interested in. You will then conduct a visit with the agent to see the house and to evaluate it. If you believe that you have found the house of your dreams, then it will be necessary to conduct a home inspection to ensure that you are getting a fair deal and that the house is functional and without any notable types of flaws that could jeopardize your comfort, safety and well-being.

Once the home inspection has been conducted then you will be faced with what is known as closing costs and procedures. Closing costs are usually quite high and may account for up to 2% of the sale value of the house. Payments will have to be made to the lawyer that you hired, land transfer tax, commission to real estate agent and adjustments. An additional municipal land transfer tax will be applicable if you bought a home within the city limits of Toronto.

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