Congratulations on having an accepted contract on a house, but now what? In Ontario, purchase agreements (contracts) are accepted in writing. Unless we received an executed contract (which means everything has been signed by both the sellers and the buyers) we do not have an enforceable contract. Therefore, it’s urgent that a signed contract be received by all parties ASAP. Once a signed contract is received, several things need to happen depending on the conditions that needs to be fulfilled and it is important that you are available at a moment’s notice to sign or initial any amendment or changes that need to be completed:
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- You need to write and drop off the deposit. Typically the deposit money is made out to the seller’s agent’s brokerage (NEVER to the seller or the agent’s name) and is in the form of a bank draft or a certified cheque (we’ll let you know which one you need). Usually it is dropped off at the seller’s agent’s office with 1 business day of contract acceptance or what is written on the purchase agreement. Nowadays, deposit money is being wire transferred or directly deposited to the seller agent’s brokerage’s bank (in the form of bank draft). Either way, when you drop it off make sure you ask for a receipt. Also, take a photo or scan your bank draft and put the address of property in the reference / memo section. Keep the receipt for future reference. Click here to read more about the deposit money.
- The purchase agreement needs to be sent to your mortgage lender. Again, if we are your Realtors, we’ll take care of this. This lets your mortgage lender know that you’re under contract and starts the process for getting you approved for the mortgage (remember, right now you’re only pre-approved). If you haven’t sent your documents to your mortgage lender then it is time to send them all at once to avoid delays. Since you have been pre-approved, this should not take long especially if you have submitted your documents beforehand. The lender will require appraisal for the property to ensure that the price is currently acceptable. If the appraisal is lower than expected, you might have to pay the difference (this is why you MUST NOT waive mortgage condition when you put your offer unless you’re really sure the price and your finances are in tact). Be sure to respond promptly to your mortgage lender. They will ask you to fill out a lot of paperwork. Also, we need you to read this quick two page document regarding the mortgage process
- You need to schedule the home inspection. Click here for my list of recommend home inspectors. This needs to be done ASAP.
- You need (or the sellers) to fulfill the other conditions within the alloted time. If we are your Realtors, we will help ensure that all conditions are coordinated and fulfilled before the deadline.
- Once the contract has been accepted firm (all conditions has been fulfilled and acceptable to both parties) then it’s time to send it to the lawyer so the lawyer review can begin. If we are your Realtors, we’ll take care of this for you. Once your lawyer receives the contract he or she will begin the attorney review process. This involves looking over the contract and negotiating changes he or she wants to made. Expect to hear from your attorney within 1 – 3 days with any documents they need you to sign or changes to the contract they want you to look over. Always respond to your lawyer or his/her assistants/clerks as quickly as possible to keep the process moving forward. The lawyer will also fulfill the lender’s funding conditions and process the registration of your house in your name. Once the lawyer has completed registration then your transaction is considered closed. Time to get the keys!
There are many steps in between that needs to be done from getting firm to closing and if we are your Realtors, we will ensure that these steps are not missed like getting a home insurance, booking your elevator, contacting your utility providers, etc. We’ll email you every few days with an additional next step. Think of it as our friendly way of giving you homework to ensure a smooth transaction and to help you make sure everything gets done on time.
Questions? Call us at 647-888-9999 or email me at leivillarre(at)gmail(dot)com.