Purchasing a new home or refinancing - Mar. 09, 2009

As Spring approaches I know many people think about change. The season is all about new beginnings, so it is natural that our thoughts seem to follow nature's cycle. Whether you are thinking about buying a new house, or refinancing for a remodel of your current home, I would be more than happy to help you.

There are many important things for you to think about when contemplating your new purchase/refinance. I work with your real estate agent and with your mortgage lender/broker to ensure the process is as painless as possible. Buying a new home, whether it is your first or your tenth, should not be so stressful that you would rather have a root canal!

Here are just a few of the important things for you to consider, from my point of view:

-Is the property on Land Titles or is it in the Registry system? This can affect the cost of the transfer/refinance. Do not fret if you do not have a clue what that means. Your lawyer can tell you after a quick peek.

-If you are purchasing, have you set aside enough money to cover the adjustments? The seller expects you to pay your share of that year's property taxes and usually expects you to pay for the propane/oil that they leave behind. Do not forget to think about your legal fees or all of the disbursements/expenses incurred by your lawyer. For example: registration of documents, land transfer tax, title insurance/or a Surveyor's real property report.

-Is the property subject to Harmonized Sales Tax? Most used residential housing is exempt, but it is up to your lawyer to give you their opinion, on a case by case basis.

-Will the seller be providing a Property Condition Statement? If no, why not? The last thing you need is to discover major problems with your new purchase.

-Will you be getting a home inspection? I highly recommend one, although they should be taken with a grain of salt. The inspectors are very thorough, so you should not expect a ten year old home to be in pristine condition without a nick or scratch on the paint. If you do expect that, then the price should reflect it.

-Do you know where your birth certificate and other important identification is kept? Your lawyer will need copies for the transfer of the property.

Some of these things will be discussed and negotiated before you ever meet with your lawyer. However, if you are in doubt, do not sign an Agreement of Purchase and Sale until you have either met with your lawyer or until your real estate agent has satisfactorily answered all of your concerns. Legal advice is most helpful before a binding contract is signed - after the fact is often too late.

Caveat Emptor. 'Buyer Beware' is a good thing to keep in mind.