The main steps to buying a house

Do you want to become a homeowner? Is your family growing and you need more space? Between you and your new home lies a busy path: searches for properties that match your needs and criteria, visits, negotiations, pre-purchase inspections... Lots of elements to consider and coordinate!

Here is a list of the main steps in your real estate purchase.

To sign a purchase brokerage contract or not? Did you know that if you choose to use the services of a broker to represent you when purchasing your home, you will benefit not only from the expertise of a professional trained and supervised by the OACIQ , but also from all the protections offered by the Real Estate Brokerage Act ?

Duties and obligations of the real estate and mortgage broker

The Real Estate Brokerage Act clearly defines the duties and obligations that the broker has towards you. For example:

• The real estate broker is bound by a strict obligation of loyalty to his client. He is required to promote his interests and protect his rights.

• He must disclose certain situations promptly and in writing to all parties to a transaction: he has a personal interest in the property you are interested in? he directs you to a particular banking institution and derives an advantage from it? he must declare this to you in writing.

• The broker also has the duty to objectively advise and inform his client as well as all parties to a transaction, by providing them with the explanations necessary for understanding and evaluating the services he provides. He must therefore clearly explain all the clauses of the forms he has you sign.

• He is required to inform all parties to the transaction of any factor that may adversely affect the transaction.

• The real estate broker has the obligation to demonstrate the accuracy of the information he provides by means of relevant documentation and he is responsible for all the information he disseminates. Consult the Regulation respecting the conditions for carrying out a brokerage transaction, the ethics of brokers and advertising to learn more.

Once you have chosen the broker who will accompany you throughout the process of buying your home, you could enter into a purchase brokerage contract, which will clearly establish the bases on which your broker will act as well as your rights and obligations. This can be advantageous, particularly when the property you are interested in is for sale without the services of a broker.

For more details on the content of the brokerage contract – purchase, consult it on the Brokerage Forms page.

A broker can also support you in this purchasing process and represent you without a brokerage contract.

You could also use the services of the seller's broker, who is bound to his client by an obligation of loyalty: this means that this broker cannot disclose to you any confidential or strategic information concerning the seller. However, he has an obligation to act fairly towards you, to inform you and to advise you objectively, in particular by providing the usual conditions relating to the inspection and financing for your promise to purchase.

How to choose your house?

First, take care of your finances.

It is always tempting to do research on the Internet, look at photos for inspiration, compare prices… But first of all, you need to know how much you can invest in the purchase of your home. Refer to the Mortgage section of our site to find out everything you need to calculate and estimate.

List your needs

List your priorities and the aspects of your future home that are absolutely essential to you. City or suburb? Single-family or income-generating? With a yard, or is a balcony enough? It's up to you to decide!

You will avoid wasting time visiting houses that are too expensive, too big or simply do not meet your requirements.

Organize your searches and comment on each visit

This is surely the longest step, but also the most important.

During your visits, review your entire list of priorities, in addition to noting the characteristics of the residence and the impressions it leaves on you as you see them.

As a reminder, use the documents provided to you by the broker before your visit: the property description sheet and the Seller's Declarations of the Property form. Then take the time to think carefully and compare your notes, because all this information could be decisive in your decision, especially if you are hesitating between two properties.

Asking price vs actual value

If you are interested in a property and its price is within your budget, it is important to get an idea of its real market value in order to offer a price that will interest the seller, while respecting the property's estimated value.

Your broker has the skills to assess the market value of a property, so he will be able to enlighten you on this subject. He will identify the elements that can increase or decrease the sale price of a house, such as the year it was built, its state of preservation, the layout of the land, etc.

Ready to make an offer?

So, you've found the perfect home for you? Now you're ready to make an offer! Your broker will write your promise to purchase on a mandatory form published by the OACIQ and designed to provide you with maximum protection. The promise to purchase signals to the seller that you want to buy their property. If they accept it, it means they are committed to selling it to you.

Your broker will review the contents of your promise to purchase with you. You will indicate, among other things:

• the price you offer the seller for his property;

• the deadline for carrying out the pre-purchase inspection;

• inclusions and exclusions, i.e. items you want included or excluded from the purchase (e.g. an above-ground pool or dishwasher);

• the date and time set for the seller to accept your promise to purchase (after which it becomes null and void).

Juggling counter-proposals

You obviously want the seller to accept your promise to purchase. However, he may refuse it or make you a counter-proposal, which has the effect of notifying you of the refusal of your promise to purchase, but by accompanying this refusal with a new proposal that would be acceptable to him, for example by modifying the asking price. You then have the choice of accepting it or refusing it.

In response to this counter-proposal, your broker may draft a counter-proposal for you using the mandatory form of the same name. A counter-proposal has the effect of cancelling all previous counter-proposals made by the buyer or the seller. The agreement that will bind you to the seller will consist of the promise to purchase as it has been modified only by the last counter-proposal, without regard to previous counter-proposals.

Here are the keys to your new home!

Once the promise to purchase or the counter-proposal has been accepted and all the conditions have been met, the next step is to formalize the transaction at the notary by signing the deed of sale.

Would you like to learn more about the process of buying a property with a real estate or mortgage broker? The OACIQ has designed the Buyer's Guide for you, a checklist containing a wealth of practical information for your transaction.

And now you are the owner. Congratulations!

SOURCE: https://www.oaciq.com/fr/pages/achat