Search Property

Frequently asked questions, answered.

GENERAL

How much commission will I pay?

Typically, the seller will be responsible to pay for the commission related to the real estate transaction. In some cases, a buyer may be responsible to cover commission. For example, when the property being purchased is being sold privately and where the seller did not agree to pay a commission to the brokerage involved in the real estate transaction.

Depending on the market, commission is typically 5% of the sale price. If there are two brokerages involved in the real estate transaction the commission is normally split 50/50. It is also important to note that HST will be charged on the commission total.

What closing costs should I account for?

At the closing of a transaction, the buyer will incur expenses. The total cost of buying a home involves the purchase price of the property and the closing costs that arise on completion of the transaction. These expenses are necessary to complete the purchase, in addition to the purchase price of the property. Some examples of additional expenses a buyer may incur are as follows: adjustments for property taxes, lawyer’s disbursements, home insurance, provincial land transfer tax, an additional status certificate for a condominium, mortgage default insurance, and personal expenses (for example moving costs and purchase of household goods).

What information should I provide my real estate sales representative?

The more information you provide the better equipped your sales representative will be to find a home that meets your needs and wants. Information such as geographical location, proximity to retail and restaurants, number of bedrooms and bathrooms, budget, special features (e.g. pool, garage), type of dwelling (e.g. bungalow, 2-storey, condo) and so on.

What is an easement?

An easement is a right enjoyed by one landowner over the land of another and is granted for a special purpose, rather than for general use and occupation of the land. It does not grant ownership to any part of the land, only a right to use for that special purpose. It runs with the land and binds subsequent owners. It will not be eliminated just because the property has sold. For example, a hydro easement under part of a backyard could prevent the property owner from installing an above-ground swimming pool, as the hydro company must be able to access their underground cables.

What is the difference between a minor variance and rezoning?

A minor variance, for planning purposes, is generally described as a slight modification concerning a particular property in relation to bylaws in force within a municipality. A rezoning application is required when a property owner wants to use a property in a manner not permitted under the zoning bylaw and applies to amend the zoning bylaw. Amending a zoning bylaw is a much more complex and expensive process. A minor variance, on the other hand, is comparatively easier and can be granted by the municipal council’s Committee of Adjustment.

DEPOSITS

Where will my deposit go?

In most cases, the listing brokerage is named as the deposit holder in the agreement of purchase and sale. Thus, the deposit money will be deposited into the brokerage's real estate trust account pending completion or other termination of the agreement. However, the deposit holder could also be any trustee identified and agreed to by the buyer and the seller, such as a lawyer. In most cases, when a condition is not fulfilled or the agreement is terminated, a mutual release will have to be signed before any deposit is released. The deposit will be paid according to the terms set out in the mutual release.

Does my deposit cheque get cashed?

Yes. The deposit money is held in trust until completion or other termination of the agreement.

Can I provide the deposit by way of electronic funds transfer?

It is possible to transfer funds electronically, as long as the deposit holder is set up to receive funds that way. In such cases, a clause to this effect would need to be added to the agreement of purchase and sale. For more information on this topic visit: https://www.reco.on.ca/registrars-bulletin/electronic-funds-transfer/

GENERAL

How do I prepare for an open house?

Address any potential hazards (i.e. extension cords in traffic areas, slippery stairs and walkways, and fragile items that can be easily damaged). Clean and organize the home. Lock away or remove valuables, such as jewellery, cameras, and personal information. On the date of the open house, avoid cooking food with strong odours. Provide a place for boots, umbrellas, and coats. Remove pets from the home, if possible. If not possible, make sure they are secured and do not become a distraction or annoyance, or escape from the home. Ensure all paths and walkways are safe to walk on and clear of snow and ice. Ensure all exterior surfaces are clean and clear of unnecessary items (for example, decks, pools, walkways, and driveways). Ensure the exterior is well manicured; lawns should be mowed, leaves removed, trees pruned, gardens weeded, and hedges trimmed.

How quick will you sell my property?

A property can sell quickly or stay on the market for a while for multiple reasons. First we have to understand mark conditions. If we are operating in a seller’s market, it means there are more buyers than sellers which could lead to faster sales. On the contrary a buyers market could lead to homes staying on the market longer as buyers have more options to choose from. Another important aspect to consider is the condition the property is in and the features it has to offer. If the property is in perfect condition and does not require any additional work, it could attract more buyers. All in all, there isn’t just one factor that determines the speed to which a property will sell. A real estate salesperson will be tasked to attract the appropriate buyers for the type of property that is being sold.

How much commission will I pay?

Typically, the seller will be responsible to pay for the commission related to the real estate transaction. In some cases, a buyer may be responsible to cover commission. For example when the property being purchased is being sold privately and where the seller did not agree to pay a commission to the brokerage involved in the real estate transaction.

Commission can be negotiated and depending on the market is typically 5% of the sale price. If there are 2 brokerages involved in the real estate transaction, the commission is typically split 50/50. It is also important to remember that HST will be charged on the commission total.

What closing costs should I account for?

At the closing of a transaction, the seller will incur expenses. The seller will typically be responsible for legal fees, related expenses (disbursements, documentation, etc.), any costs associated with satisfying the buyer’s lawyer’s requisition items (for example, expenses related to registering the mortgage discharge, or discharging a lien placed by the municipality for unpaid taxes), real estate commission plus HST, and moving costs (for example, a professional moving company). Some examples of additional expenses a seller may incur are as follows: adjustments for property taxes, mortgage interest adjustments, and an early mortgage discharge penalty.

Can I sell my house without the consent of my spouse?

A matrimonial home is defined by the Ontario Family Law Act as “[e]very property in which a person has an interest and that is or, if the spouses have separated, was at the time of separation ordinarily occupied by the person and his or her spouse as their family residence is their matrimonial home”. The rights of the spouse in a matrimonial home are extended to the spouse who is a non-owner or whose name is not present on the title of the property. A few examples of rights are listed as follows: written consent by the spouse (even by non-owner spouse) is required to be able to list and sell the home as per the Family Law Act and the registered owner cannot dispose of the matrimonial home without the consent of their spouse. In a common-law relationship, in the event the family home is sold and the relationship is dissolved, the parties should seek independent legal advice to clarify their rights relating to the sale of the family home.

GENERAL

What is Tarion?

Tarion, a non-profit corporation, is the provincial warranty authority under Ontario New Home Warranties Plan Act that regulates the new home building industry. Tarion ensures that: homeowners receive statutory warranty coverage and builders meet minimum service standards when fixing or otherwise resolving warranted items under the statutory warranty coverage.

Do builders and new home vendors need to meet certain requirements?

The Ontario New Home Warranties Plan Act requires every builder and vendor selling new homes to warrant construction of the home. In addition, the Ontario New Home Warranties Plan Act protects a buyer from a delayed closing, deposit disputes, and substitution of finishes during construction. For more information on this topic visit: https://www.tarion.com/homeowners/your-warranty-coverage/warranty-outline

What are the standard finishes that come with new construction?

Every new construction builder will offer various finishes throughout the home. For example, some may include hardwood floors while others will make that an upgrade. It is important to visit the sales office and request that information. Often a standard feature list will be available for review.
Your question is not answered here?

Get in touch and I will get you the information you need.