Renting in Toronto?

Be prepared, be very prepared. Often renters check out areas where they want to by a property, here are some tips to:

Have the following
1. an up to date credit rating;
2 reference letters from your last 2-3 landlords;
3. cheque for first and last months rent;
4. completed application.

Please see the following article

Open House – What is important?

Saturday and Sundays are great times to see a lot of open houses.Some sales agents are holding their open houses during the week. Herre are some things that will be improtant.

1. Is the seller working with a brokerage or is this a private sale?
2. Does it meet most if not all of your checklist needs?
3. What advantages does the neighbourhood have?
4. How long has this property been on the market?
5. Is there a current home inspection?
6. Is there a recent survey?
7. Will the purchase depend on obtaining a mortgage?
8. Will the closing date be flexible – allow at least 2-3 months if purchasing a house.
9. What will be the real commute time from this place?
10. Can you really see yourself in this place?

How to pay for your first home?

Besides saving for years and years and living on ramen noodles, there are ways to purchase your first home.

1. The Home buyers plan

A 15 per cent income tax credit towards closing costs for eligible applicants. The credit applies to a maximum of $5,000 in closing costs which would result in a credit of $750.

2. 5% Down Payment plan
Although, it is advisable to have a bigger down-payment as you have to pay a premium to insure your property.

3. HST Rebate

Available when you purchase a renovated home from a builder, a new mobile home, shares in a co-op, or substantial renovations to your home, even from fire. May get up to 36 percent rebate of the federal portion of the HST paid to a maximum of $6,300 on a home costing less than $350,000. The new home buyer can also apply for a rebate of 75% of the provincial portion of HST to a maximum of $24,000.00.

4. Rebate on Provincial and Municipal Land Transfer Taxes

Up to $2,000 for Ontario and up to $3, 725 for the City of Toronto for first time buyers who have never owned a house anywhere in the world nor been with a spouse who has.

5. Bank of Mom and Dad

In addition to the purchase price, land transfer taxes, there is also legal fees, title insurance, moving and new services costs, insurance for your property and adjustments made prior to closing for things such as property taxes, any shortfalls from the loan, registration of the transfer and mortgage, common expenses (for a condominium) and oil if you are purchasing a home. These additional costs can be at least another $5,000.

Make sure you ask about all available ways to finance your property, what programs you may be eligible for and all costs prior to closing. Try to save as much money as possible so you can purchase your first place.

Is that basement apartment legal?

It is important to check whether there has been any Landlord and Tenant board claims prior to purchase and if the apartment is legal. If it is not legal you may have trouble insuring your property which is needed for your lender, and you may have to bring the apartment up to code at considerable cost to you. Find out first.

Here is a link to a detailed article by Joseph Richer in the Star.

Agreement of Purchase and Sale

What happens when you sign an Agreement of Purchase and Sale.

1. It is a binding contract detailing the rights and obligations of the parties to the agreement.
2. If either party fails to complete their obligations, the innocent party can ask for certain remedies.
3. Remedies could be a request for money, forfeiture of the deposit or specific performance – the completion of the contract as agreed.
4. Another remedy is to put the parties in a pre -contract position. This remedy is available if the contract should not have been entered in the first place because of duress, fraud or misrepresentation.
5. May include pre – conditions before the agreement will be valid -such as a satisfactory home inspection, financing, review of the status certificate, or the sale of current home.
6. Conditions are good ways to protect yourself as the purchaser if circumstances change.

Please confirm the terms and your needs with your real estate professional.

How to avoid fraud when purchasing a new build condominium

There are several ways to protect yourself from losing your deposit on your dream condominium. Here are are few

1. Is the builder reputable? Is this the first project or has this developer been in business for years. If so, visit other buildings and speak to owners/residents, check the news, speak to the Property Manager. Does this builder create sound buildings? Check the builder through the tarian search link

2. Does the builder have a Trust Account? A trust account is a separate account where your deposit and others are held separately until it is released because you have purchased or declined to purchase the property?

3. Do they have the protection of the Ontario New Home Warranties Plan Act for Deposit, Occupancy Delays in Closing or Occupancy? Please see the Tarion website for what protection is offered and when?

4. Have you reviewed the Agreement of Purchase and Sale with a real estate lawyer during the 10 day cooling off period? Do you know what your rights, obligations and the builder’s obligations and rights are? When are deposits required? What costs are you going to be responsible for over and above the purchase price?

These are only a few key points to consider when seeking out your dream home. Protect yourself and your money.

Please contact Prince Law Office at 416-469-3443 or to discuss your particular case.

5. Do you have the ability to assign the purchase agreement if your life situation (financial, health, work) changes in the future?

6. Are you required to put down a large deposit? Be wary if you have not checked out the previous points.

5 Things to do for a successful real estate closing

1. Do not close on a Friday. If mortgage money is late, the Vendor will not let you take ownership.

2. Do not close on a Friday of a long weekend. If mortgage money is late, you may not get ownership until Tuesday.

3. For the Vendor if payment is late you will have to pay a daily (per diem) rate to discharge your mortgage, until Tuesday after a long weekend.

4. Hire a lawyer as soon as possible -especially purchasers.

5. Expect the worst and hopefully it will not happen