Buying a house is exciting as well as stressful. We understand that for many of our clients this may be single most important purchase they make. To make the process of buying a house less daunting, we can break it down into a step by step process.
Step 1: Selecting the perfect home
There are many different factors such as cost, appearance of new house, location etc. which will influence your selection of the perfect home. It is best to get pre-approval of your mortgage, so there will be no disappointments. When you decide to make an offer, you and your realtor should discuss the offer strategy that you will employ, always keeping in mind your financial limits. It is always a good idea to review a Real Property Report, to make sure that there are no problems with your prospective home. If you are buying a Condominium, it is crucial for the new home buyers to have condominium documents professionally reviewed.
Step 2: Retaining a lawyer
Your realtor should send the complete copy of your Residential Real Estate Purchase Contract (“Purchase Contract”) along with the Conveyancing Instructions to the lawyer you have chosen. If you do not have realtor, the documents which your lawyer will require include:
1. The complete Purchase Contract;
2. Any addendums or amendments to the Purchase Contract; and
3. A copy of the deposit cheque.
Advise your lender as to who your lawyer is, and your lender will then forward the Mortgage Instructions. The first thing your lawyer will do is search title at Alberta Land Titles and search Property taxes on the house.
Step 3: Confirmation of Insurance
You will be responsible for placing fire insurance on the property you are buying. The insurance protects sellers if they give you possession before getting paid in full and will be required by your lending institution. Your lawyer will need confirmation of the insurance, which will come in the form of a binder. If the property you are purchasing is a Condominium, many lenders do not require contents insurance. The building is insured but you are strongly advised to get contents insurance to protect yourself.
Step 3: Meeting with your lawyer
Your lawyer will review the array of documents and forms with you and will explain to you their legal implications. Once all the conditions required by the lender are fulfilled, your lawyer will request the funds from the lender.
Step 4: Possession day/Closing day
The Lender will release the funds on the day of your possession. After depositing all the funds to a trust account on your possession day, your lawyer will transfer the Cash to Close to the seller’s lawyer trust account. Cash to close will include your down payment and will deduct earnest money deposits you may have agreed to make when your offer was accepted, as well as any seller or buyer credits. Once the seller’s lawyer receives the Cash to Close, the seller will release the keys to you.
Whether you are a first-time home buyer or whether you have purchased property in the past, our friendly and experienced conveyancing team will make every effort to make the purchase of your new home as smooth as possible.
Contact our firm by calling 780-428-0128 or toll free 1-844-669-3500 for our reasonable flat rate legal fees.