FAQs

1. Should I have an inspection done before I agree to buy a property?
   
2. Do I have to pay a deposit when I buy a property?
   
3. What about Urea Formaldehyde Foam Insulation (UFFI)?
   
4. Are there any advantages for first time buyers?
   
5. Do I have to pay GST when I buy a property?
   
6. If GST applies, can I apply for a GST rebate?
   
7. I already own a property. Should I buy or sell first?
   
8. What is buyer's agency?
   
9. What is Limited Dual Agency?
   
10. How should I select a realtor?
    
11. Should I list my home with the realtor who simply suggests the highest price?
    
12. Do I pay a commission when I buy and sell a property?
    

Yes. This is an important step in the property purchase process. It allows a buyer to have a third-party independent opinion about the physical condition of the property. This could reveal potential problems with the property which may impact your decision to purchase.

No. It is legally possible to purchase a property without putting up a deposit. However most sellers will not accept an offer from a buyer which does not include a deposit. From the seller's perspective an offer accompanied by a reasonable deposit (5% of the purchase price or more) is usually viewed as a serious attempt to purchase.

A deposit does not have to be given immediately upon making an offer to purchase a property. It can be given when the offer has been accepted by both parties or at some other time that is mutually agreed upon by the buyer and seller.

This type of insulation was installed in properties primarily during the late 1970's and early 1980's. It was discovered that UFFI could cause an extreme allergic reaction to the formaldehyde gas which came from this insulation.
Although the majority of UFFI has been removed from houses, a prudent buyer should still be aware. Check the Seller's Property Disclosure Statement to determine whether UFFI has been disclosed.

First time buyers can use their RRSPs (up to $20,000.00 per individual) to assist in the purchase. First time buyers MAY be exempt from provincial property taxes. You should contact your real estate professional for more information.

If it is a new property being sold by the original developer or builder, GST will be applicable. GST also applies to the purchase of raw land, an empty lot, and property, the used as a farm, on the farm portion. Contact Canada Customs and Revenue Agency for more details.

Yes. You will need to obtain the form GST 190 E(01). See the guide called GST/HST New Housing Rebate available from Revenue Canada. Contact Canada Customs and Revenue Agency at 1-800-959-5525 (web address: www.ccra-adrc.gc.ca). Ask the lawyer or Notary handling the conveyancing for you to assist you in applying for the rebate.

It depends on your personal circumstances. You should consult with your real estate professional to discuss which strategy best meets your needs.

Buyer's agency is where a buyer appoints an agent to represent them in an agency relationship. The principal (in this case the buyer) appoints an agent (the company which the sales associate is licensed with) to represent them as their agent in the purchase of a property. The agent (the company and their sales associates) is legally obligated to protect and promote the interests of their principal. A principal (buyer) may appoint their agent through a written agreement called an Exclusive Buyer's Agent Contract. This is similar to the listing contract that a seller would sign with an agent when appointing an agent to sell their property. An appointment of a buyer's agent can also be made verbally. This process requires that a realtor describes the various forms of agency representation to a buyer and then receives verbal confirmation of their appointment as the buyer's agent.

Limited dual agency is where an agent represents both buyer and seller (landlord and tenant) in a real estate transaction. In a typical agency relationship the agent has previously been appointed as the agent to one of the parties. Usually they have been appointed by the seller to sell the seller's property as evidenced in the signing of a Listing Contract. Since the agent has already become obligated to act in the best interest of the seller the agency relationship needs to be altered. A new agency relationship which limits the duties and obligations of the agent is created. This relationship requires that both the buyer and seller give their written consent to this relationship. This is accomplished by the agent, seller and buyer authorizing a Limited Dual Agency Agreement.

You should interview the real estate representative that your considering to assist you in the purchase and/or sale of real estate. Prior to the interview determine what criteria are important to you. During the interview you should ask a number of questions to determine if you are satisfied the realtor will be able to meet the criteria that you have selected.

No. Optimism is good, but realism makes the sale. Take a close look at the comparable sales and listings information that the realtor has used to arrive at the value of your property. The suggested asking price should be consistent with the market and price should not be the only criteria used when selecting a realtor.

A commission is payable when you sell a property. In most cases, the seller pays the commisssion. There are some properties where the buyer is asked to pay the commission, consult with your Realtor for further information on this.