Buy a Home in Mississauga
Step One: Finding a home & making an Offer to Purchase.
1. Initially the purchaser would have an interview and pick the Agent (Sales Representative / Broker) of their choice to discuss the Purchaser’s wants and needs. This is also a opportunity for the Agent to explain the buying process.
2. Purchaser sees the lender or broker of their choice to obtain mortgage pre-approval. Speak to your agent about a referral for a representative to help you through this. Realtors usually have mortgage representatives and brokers that they have confidence in to be able to help you obtain the best possible mortgage with competitive rates and terms.
3. Purchaser would then conduct a search with his/her Realtor and find the new home of their dreams (easier said than done!).
4. Purchaser submits their offer to purchase property. Often the Purchaser has conditions such as:
i) Confirmation of mortgage final approval.
ii) Home inspection approval.
iii) Lawyers approval.
iv) Status Certificate Review
v) Well and Water Tests
5. The offer is negotiated to acceptable terms and conditions for both parties.
6. Seller accepts Purchaser’s offer to purchase.
7. The purchaser’s deposit is placed “in trust” on their behalf. In Mississauga the deposit is negotiated and sometimes it depends upon the property value.
8. Condition removal process depends on the amount of days that were negotiated for each condition. Most conditions have a typical amount of time that is a standard within its industry.
9. Waiver of conditions; as each condition is met the Purchaser must fulfill the condition from the Offer to Purchase within the predetermined condition removal time period. If written fulfillment paperwork or waivers are not completed and presented to the Seller within the time frame allowed, the agreement of purchase and sale may be voided. If more time is needed you would have to re-negotiate the amount of time with the Seller.
Step 2: Taking care of the details before your move.
1. Unconditional offer is delivered by Seller/Buyers Agent’s office to the Seller’s / Purchaser’s lawyer.
2. About 1 to 2 weeks before the closing the Purchaser meets their lawyer to complete the closing of the sale.
3. Purchaser will make arrangements for transfer & connection of utilities (you can find local phone numbers here), telephone, mail forwarding etc. A moving checklist is available online.
4. Instructions to prepare mortgage delivered to Purchaser’s lawyer from the financing institution.
5. Seller’s lawyer obtains description of property and prepares transfer deed for execution (signing) by the Seller.
6. Sellers execute (signs) transfer with their Lawyer.
7. The Purchaser’s Mortgage documentation is prepared and finalized.
8. The Seller’s lawyer delivers transfer of deed and land documents to the Purchaser’s lawyer under trust conditions.
9. Purchaser needs to be sure to arrange for home insurance to cover the home or you may not be allowed to close the purchase until this is finalized and proof is delivered to lawyer.
10. Purchaser’s Lawyer calculates the cash balance the Purchaser will need to close their home purchase after all adjustments & fees.
11. The purchaser’s lawyer delivers this “Statement of Adjustments” to the Purchasers lawyer.
12. The Purchaser executes (signs) transfer & mortgage documents & delivers the balance owing from the Statement of Adjustments.
13. Balance owing forwarded to Seller’s lawyer under trust conditions.
14. Purchaser’s Lawyer submits transfer and mortgage documents to Land Registry Office for registration.
15. Seller’s lawyer receives balance owing and holds it “in trust” pending completion.
16. Registration of transfer and mortgage obtained – title is now in the Purchaser’s name (possibly) subject to mortgage.
17. Purchaser’s lawyer requisitions mortgage funds and forwards the mortgage funds to the Seller’s lawyer “in trust” that any unacceptable title encumbrances be removed.
18. Seller’s lawyer receives mortgage proceeds and holds “in trust” pending completion.
19. Seller’s lawyer obtains discharge of encumbrances and reports to Purchaser’s lawyer. Pays out Seller mortgage if any.
Step 3: Move in time
1. The Seller’s lawyer releases keys to purchaser’s solicitor or advises Seller’s Agent of release of keys to Purchaser. (Often prior to lawyer receiving mortgage proceeds.)
2. Copy of acceptable title, in Purchaser’s name, delivered to Purchaser’s lawyer.
3. Purchaser’s lawyer reports to financial institution.
4. Seller’s lawyer reports to Seller: accounts for funds received and releases funds to Seller.
5. Purchaser’s lawyer reports to Purchaser.
Transaction is complete.