7 Real Estate Terms You Need to Know Before Buying your Orangeville Home
Deciding to buy your first home can be overwhelming. There are so many documents to get through, what do they all mean? Our job as realtors is to walk you through the process but it can still feel overwhelming. Here are some basic real estate terms that you will encounter during an Agreement of Purchase and Sale of your Orangeville home; we hope you find them helpful.
Buyer Representation Agreement (BRA)
A Buyer Representation Agreement is a contract that your Realtor ® will have you read and sign. It’s a contract between you the Buyer and a real estate company (real estate brokerage) that gives the real estate company permission to act on your behalf in the endeavour to buy a property. Your Realtor ® is required by The Real Estate Council of Ontario, to have a Buyer Representation Agreement signed with you prior to an offer being presented on your behalf. The contract is between you and the real estate company and details the particulars regarding time periods, geographical location and property type. It explains the services to be provided and the fees for those services. It explains different types of representation and other important information regarding the buying process. When signing a BRA be certain that you have not already entered into a BRA with another brokerage.
When you submit an offer to purchase a property, you will be required to submit a deposit with the offer. It demonstrates good faith in the transaction. The deposit is held in trust by the listing brokerage until the transaction is complete. The amount of the deposit is credited toward the purchase price on completion. It’s advisable to have the funds available as you are normally required to submit the deposit within 24 hours of acceptance.
Chattels are items that the buyer would like to include in the purchase price, for example appliances. These items are not attached to the real property.
Fixtures are items that are attached to the property. Items that a buyer might assume are included because they are attached. In an agreement of purchase and sale there is a section that lists fixtures to be excluded.
You may look at many properties during your search for a new home in Dufferin County. When you find a house you like and decide to proceed with an offer, there is a conditional period between the time you submit the offer and the time in which you fulfill any conditions you have included in the offer (ie financing or inspections condition). This is referred to as the conditional period.
As a buyer, you have the opportunity to inspect a property before purchasing it. This inspection is done during the period where you fulfill any conditions. It is performed by a professional building inspector. You, the buyer, pay for the inspection. The inspector will go through the property with you and provide you with a report to help assist you in the home buying process. Whether you are a first time buyer or have bought and sold multiple properties in the course of your life, buying and selling real estate can be stressful. The process is constantly changing.
As Salespeople, we encounter a lot of real estate. No house is perfect and we do encounter situations where we may need a professional opinion. Salespeople and the brokerage itself are not qualified to determine the physical conditions of a property. The word indemnification means that the Buyer agrees that the Brokerage will not be liable for any defects. An inspection or referral to a professional can help determine the physical condition should the need arise; we’re here to connect you with the right professional for the job.
Living in this time of advancing technology makes it seem as if things change almost daily. There is a lot of documentation to sign and lots to do. The Mullin Group aims to ease the stress of buying or selling by walking you through the entire process from beginning to end. It doesn’t end there; we want to be your trusted advisors for life. We strive to be the source for all of your real estate needs. If you need us to recommend a service provider, need advice on improvements, on community events, anything we can do to help, we’re here.