DIRECT 416 762-5949
Julie Kinnear, Jennifer Palacios,
Holly Chandler, Tyler Delaney,
Claire Hartviksen, Steph Mitchell
Guiding you home
Inugshuk

Buying a House FAQ

As a buyer, you have to make sure to know how the market works before you step in, or you risk missing out on the property of your dreams when you find it. Here are the core questions most buyers have. Feel free to send us one of your own.

exterior

Scroll down for your answers!
  1. If I'm interested in a property, how can I determine if the list price is fair?
  2. How do I know what price to offer for a property?
  3. Do you do short or long term rentals?
  4. Do I need to have a home inspection done on every home I'm interested in?
  5. What happens to my deposit while I await closing?
  6. How does the new Toronto Land Transfer Tax affect me?
  7. How do I go about finding open houses?
  8. Can I get a lockbox code from you and just visit a house myself?
  9. What is your referral policy?
  10. Should I buy first or sell first?
  11. Can you tell me more about bidding wars?
  12. Should I buy new or re-sale?
  13. When should I make my offer conditional?
  14. When should I make my offer conditional?
  15. Do you know any mortgage brokers or financing specialists?
  16. How long should a closing take - how soon before I can move in?
  17. I saw a great house on MLS.ca but when I drove by, it was already sold?
  18. If I just want to get in to see some houses, why do I need a Buyer Representative?
  19. Is a Buyer Representative's service free to me?
  20. Do I need a real estate lawyer if the offer documents are pretty standard?
  21. How much do I have to put down on a property when making an offer?
  22. What are homes selling for on a certain street?
  23. Offers are being accepted by fax on a property I'm interested in. What does that mean, and how does that affect my chances of getting my dream home?
  24. What happens if I buy a house and the sellers don't deliver on their promises?
  25. Do I get a better deal if I buy a house being sold by the bank?
  26. What's a CVA?
  27. What is an SPIS?
  28. Hi Julie, our offer has been accepted on the house we're interested in, tommorow I'll be giving them my 10,000 deposit,I'm having second thoughts.. could I still backout from it?
  29. Hi Julie, I am planning to move to Toronto by April next year. Right now I am working in Abu Dhabi, United Arab Emirates and I am visiting Toronto on 3rd July 2008. Will it be possible for me to buy a property in a good neighbourhood in Toronto while I am still working in UAE. By July end 2008, I will have my PR Card done. Awaiting your reply, regards, Aju C.Paul
  30. Hi Julie, My husband and I are immigrating to Canada and have just applied for visa's etc. It takes around 48 months in the UK for everything to go through. We have enough points to get in, so it's just a question of waiting.....could you advise us of neighbourhoods in Toronto that would suit our requirments please? We would like to buy a house with at least 2 bedrooms and a garden (we have a dog) and we would like the house to be on the lake shore. We would like to be within a 30/45 min commute into central Toronto for work. I know that 48 months is a long time away but we are starting to do our research and would really welcome your input. I look forward to hearing from you. Kind regards, Debbie
  31. Hi Julie, we have made an offer on a house and it has been accepted. One of the conditions we put on the offer is a home inpection, another is our house selling. We are thinking of having the inspection done immediately (before our house sells), is this a good idea? Our thinking is that if for some reason we are asked to waive our conditions to keep our offer ahead of another offer then at least we will have done the inspection first. Also, if something serious is discovered in the inspection we can back out before our house sells or before wasting too much time. Any input would be greatly appreciated, thanks.
  32. We put an offer for a house A with 2 conditions, inspection and buyer arranging financing satisfactory to him at his sole discretion within 5 banking days. Our banker gave us lot of trouble to get the mortgage papers and we withdrew the offer on night of 5th banking day. we got the mutual release letter and deposit back in 3 days. Now, we are buying another houseB at exactly the same amount. This time we sorted things with bank as we started the process earlier and closed the deal. The seller of house A said he is going to sue us as it is the same amount and now we are Ok with financing and buying another house. Based on your experience, what do you do in these situations?
  33. Hi Julie, I have made the deposit of $5000 , bought house for $310000,condition is waived. The closing is 11th march, but i am thinking to back out as I think even though the mortgage is approved I am having difficulty arranging finances. Can I back out will the seller put any litigation on me. Please advise
  34. We are moving to Canada - Toronto in May from the UK. How much deposit do you need to put down on a house when we buy? we are looking for a short term sub let and to buy really quickly.
  35. What happens if the buyer puts a offer with no finance needed or home inspects. They put a $5000 deposit. They have signed the offer. But the next week they claim one of them have lost their job. What happens to their deposit.
  36. We have been in Toronto for 6 months under a work permit visa and we plan to apply for permanent residency next year. Is it possible for us to purchase a house now? thanks.
  37. Do I need to ask the seller if he would accept a price that I offered before I put an offer? That is do we need to agree on the price first before I put the offer? If we agree on the price verbally and then I put an offer. Can he come back to change the price? Thank you!
  38. Julie sold house closing July 23,2010. On July 19, 2010 buyer claimed more work to be done to house than he can afford. He signed off all conditions after inspection. Can he back out on us?
  39. Julie, we are interested in purchasing a home. However when called real estate agent he stated that an offer was accepted with conditions. Does this mean that no more offers can/will be accepted perhaps without conditions?
  40. Help - weève put in a non conditional offer just to discover it is the sellers bank we are dealing with as he is in arrears. Our offer is 9,000.00 under due to the condition of the house.
  41. Help - i put a deposit down for $7500 on a home in Toronto,ON. I was pre-approved for a mortgage with conditons. The closing date is approaching but I have not been successful in meeting my conditions (going through a seperation). What happens now? Can I be sued? Do I loose my deposit? Does this affect my credit history?
  42. Hi Julie. In general, I know it's ideally best to try to "buy low, sell high" in terms of real estate. However, if I'm faced with a choice of purchasing a property that is very reasonably priced but I don't have the potential of making a huge profit down the road ("buy low, sell low") VS puchasing a property that is expensive but that may yield a high profit in the future ("buy high sell high"), which is more advisable in your opinion?
  43. Hi Julie, We made a deposit of 10,000 last week and my conditions have been waived after they agreed to reduce the price of the house after the inspection (some work has to be done). Now, we are having second thought and would like to back out. What will be the implications, legal or otherwise? Is there a chance that we can get back our deposit or part of it?
  44. Hi Julie, Our child (a new graduate from a Canadian university) has been moved to Toronto recently. We,as her parents would like to support her buy her own apartment (around or less than 100 square meters) or a small house. We do not want to spend too much money. What is the market price now in Toronto? Can you help us? Thank you.
  45. My boyfriend and I are getting a condo.if the mortgage is in his name,could I get my name in the property, or should we both get the mortgage in order to be a owner?? Thank you!'
  46. Hi Julie, I am planning to move to Canada to reside permanently and currently do not hold Canadian Citizenship, is that possible to get a mortgage as being non-Canadian? Or how many percent should I pay as a down payment to be eligible for mortgage? Thanks
  47. I have agreed to sell and excepted the offer on my house.But now I can not obtain a mortgage can I back out the deal before the finances for buyer goes thorough.
  48. I excepted an offer to sell my home the buyer has seven days to gain a mortgage. But I cannot obtain another mortgage due too credit can I back out of deal with two days left for buyer to obtain mortgage. I live in Ontario, Canada
  49. Hi Julie I bought house couple of months Back in Pickering this is the biggest mistake of my life coz I found house need lot of maintainance plus my wife doesnot like at all and I have fights and arguments for this every min and dts freak me out Now my question is dt cAn I buy another house in as per my wife's choice n switch my morgage can u pls help me out coz my life is about to end mean divorced coz of this mistake pls Julie help me
  50. we have made an offer on a home with 1000 dollar deposit, the offer is about to expire and we are not going to extend the offer as our house is not selling, what happens to the deposit?
  51. hi julie we sold our house and the day befor the closing they found a miner problem we agreed to fix the problem but are still giving us a hard time about buying it they did sign apresale agreement can they still get out of the deal
  52. Hello I will be moving to Toronto next year. my question please: If I buy a house, does it mean I will own the land of this house as well in Toronto? I mean can I demolish the house I bought and rebuild it or leave it vacant lot and sell it? Thanks and best regards
  53. Hello Julie, We are trying to finalize all documents for the mortgage co. of a house we want to buy, but are being held up by the buyer of our house because he hasn't produced a waiver of firm sale yet. Our home closing date is Nov 22.2011. We need this to satify our mortgage co. I've asked our sales agent how long will this take & he can't even give me an estimate. We can move into our new house on this date if we have the waiver produced. The closing for our house is Jan 1.2012. Can he back out on the purchase of our property? so many questions are NOT being answered-& to make things worse, our agents are both going on holidays today & also the buyer of our house is on holidays at the same time-what the? Please help-we are first time home buyers & they haven't been patient. We feel like we are being rushed because they all want to go on holidays. We also feel the buyer of our house is stalling. We have given him 2 extensions & also met all conditions. The buyer has sent over the fire inspector, the appraisor, the insurance inspector etc-everthing seems in order except the waiver of firm sale. Sorry I know this is long. If our agent is working for us, why can't he provide answers? Or is this a matter of holidays-maybe I'm wrong...Thank-You Dianne S.
  54. We are interested to buy a brand new house in the next 30 days. They require $5,000 deposit first, then another $5,000 two months later and $3,000 60 days before closing. Since we are living in a very unstable economic environment, I am wondering if my husband lose his job 60 days before closing and can't come up with the $3,000 as they want. What options do we have? How can we get our deposit back? Can we sell it or do we have to go to court in order to get our $10,000 deposit? Would you sugguest us any legal action just to protect us? Thank you. Helen.
  55. Hi Julie, My husband and I would like to sell our home to downsize now that all the kids are gone. We have over 120,000.00 in equity we will be using for our downpayment. Do we have to give $$ on an offer to our next home? We do not have alot of additional funds at this time.
  56. Hi Julie we are in the process of buying a home we have been preaprroved and are now awaiting inspection on the home we have put a deposit on...the problem is my husband just got laid off what can we expect to happen now
  57. Hi Julie. I live in Kitchener Ontario and just bought a condo townhouse 6 month ago. The mortgage is under his name and my name. We are approved on a 5 year term. We will be separating (we are common laws if it matters) I am planning to sell the townhouse and have my mortgage term transfered to the new house. Is there a fee when you xsfr the mortgage? Apptmly how much? And how should I start this process to sell and buy another house? Do I waiT for the house that I want to buy then contact my agent, then agent will sell house? I don't know how to reaLly start...
  58. Hi Julie I am at the closing date of a property i am buying and stopped buy the lot and there has been trees cut off the property after we had a signed deal so the property is not in the same condition that it was when i made the deal what can I do about this Thanks Gus
  59. Hi Julie I live in toronto ontario canada , my question is....if once my mortgage is approved by financial instituation and i wave the mortgage clause on sale agreement is it possible financial instituation can backed out at the time of closing and i loose my deposit..is this ever happens?????
  60. we want to buy a new home but we are scared in case the prospective buyer of our current home mayy back out. are there ways to protect ourselves in case this happens. our home is a highe end home. thanks alot. Sara and Joe.
  61. There is a house for sale "as is"; however, the electricity is cut-off so how do I know if anything is working. I don't want to buy not knowing.
  62. We are buying a house we like, one condition is we do a home inspection, do we have to actually do one if the house isn't old and was very well taken care of. Is it ok/legal to skip it?
  63. If the property tax for a house is 1700 a year is the selling price 220000 to high?
  64. Hi Julie, I had a rough time financially and was unable to keep my house.I tried selling and there was a short fall so the sale did not go through.As a result the bank had to sell the property.I am 28 and hoping that perhaps in the future I can own a home again. Do you think it is possible to EVER get a mortgage again?
  65. in the case of house selling, if the seller received a deposit from the buyer, does he/she has the right to terminate the contract later on and ask the buyer to withdraw their deposit?
  66. julie i buy the house and give 10000 dollar for depoist and my morgage agent giving me hurdle that one bank has denied and now he is trying to other lander , if i can not get the morgage than wt happen to our depoist money, as our closing date is also passed .thnks
  67. We have agent who has listed our house for us. We understand he will receive a commission once he sells it. However, we found a home on our own, that we would like to purchase through a builder's contract via another agent. Are we obliged to pay our current agent a commission even though he had no participation in finding us this home? Or do we pay the agent who represents the builders? Or do they split the commission? We have been asked by our current agent to sign a representation contract after putting an offer in on this new house? Is this ligit?
  68. I am selling my home and the potential buyer has put in conditions of home inspection, I have taken them out, will I be leable if he finds problems after closing?
  69. Hi Julie, I want to make an offer to buy a home before selling mine and waive the conditions of sale of mine in order to get the house. What are the implications if I don't sell in time
  70. Hi, when you do a conditional sale, do you have to have the $1,000 deposit sitting in your account the day you sign the "conditional sale agreement" or does it come out of our account the day we transfer/wire the owners the money? Thanks :)
  71. hi julie. We made an offer to buy a home. The broker is asking us for a 20 000 dollar deposit. We find it high. ?Is it common to have to leave such a high deposit?

front


More questions and answers...
  1. If I'm interested in a property, how can I determine if the list price is fair?

    We will look at the property's sales history and comparable recent sales to help assess true market value.

  2. How do I know what price to offer for a property?

    Based on comparable recent sales and our extensive experience, as well as any other relevant factors such as competing offers, we will recommend an offer price that will protect your best interests and give you your best chance to get your dream property.

  3. Do you do short or long term rentals?

    The MLS system was primarily designed for sale properties as opposed to properties for lease - please contact us for a referral to an agent working specifically with rental properties, and for other great renters' resources!

  4. Do I need to have a home inspection done on every home I'm interested in?

    In some cases, the sellers might already have commissioned a recent home inspection by a reputable home inspector to save you the trouble! It is also possible to purchase a property conditional on a subsequent home inspection. We will help you determine on a case by case basis whether an inspection is recommended.

  5. What happens to my deposit while I await closing?

    Your deposit is held in the listing brokerage's trust account until closing, when it is applied towards the purchase price of the property and related costs. If an interest bearing clause was part of your original offer, you may be entitled to the interest accrued on the deposit once the property has closed.

  6. How does the new Toronto Land Transfer Tax affect me?

    This depends on your circumstances - for instance first time buyers will receive a rebate on the tax for purchases up to $400K. For others, the tax matches the existing provincial tax. Check out our comprehensive article for all the details on the Toronto Land Transfer tax

  7. How do I go about finding open houses?

    If you are a client of the Julie Kinnear Team, we will send you a comprehensive list of all the open houses happening in Toronto's desirable neighbourhoods every single weekend! If you're just browsing, feel free to contact us for open house information on specific properties - or you can check out MSL.ca for their list.

  8. Can I get a lockbox code from you and just visit a house myself?

    For the protection of all parties to a trade in real estate, you must be accompanied by your Buyer Representative when visiting a property (unless the seller is holding a public open house)

  9. What is your referral policy?

    The majority of our business comes from friends, family members and happy clients who introduce us to their friends and work with us again and again. Of course we also meet new clients who've found us on this site! Please visit the By Referral Only page on our website to find out more about how the way we work benefits you.

  10. Should I buy first or sell first?

    Each strategy has its advantages & disadvantages depending on your unique situation. Contact us and we will be happy to help you craft a strategic plan that works best for you.

  11. Can you tell me more about bidding wars?

    Bidding wars, known in our industry as multiple offers, occur when there is more than one offer on a property. We can often advise you in advance whether a property is likely to have multiple offers. If you're interested in putting in an offer, we will let you know of any competing offers so that we can adjust our offer strategy.

  12. Should I buy new or re-sale?

    While we work primarily with residential re-sale properties we do occasionally assist our clients with purchasing newly constructed properties. When we meet we can discuss whether your needs are best served by re-sale or brand new properties!

  13. When should I make my offer conditional?

    A condition inserted into the offer means that the contract will not be firm and binding until certain things are fulfilled or waived (i.e. you getting financing from the bank, or your lawyer reviewing status certificate documents in the case of a condo) Conditional offers are considered weaker than firm offers, and may harm your chances of getting your dream property - we will discuss your best options with you.

  14. When should I make my offer conditional?

    A condition inserted into the offer means that the contract will not be firm and binding until certain things are fulfilled or waived (i.e. you getting financing from the bank, or your lawyer reviewing status certificate documents in the case of a condo) Conditional offers are considered weaker than firm offers, and may harm your chances of getting your dream property - we will discuss your best options with you.

  15. Do you know any mortgage brokers or financing specialists?

    Yes! As referrals are the backbone of our business, we would be happy to refer you to several trusted colleagues in mortgage financing. Please contact us for this information.

  16. How long should a closing take - how soon before I can move in?

    Most closings are from 30-60 days from the date of acceptance of the offer, however this can vary based on buyer & seller needs and other practical concerns. Our systems help ensure a smooth closing for you whether it's a leisurely wait to move in or a quick closing!

  17. I saw a great house on MLS.ca but when I drove by, it was already sold?

    MLS.ca imports its information from the Toronto Real Estate Board, and there can be a time lag of up to 3 days. In addition, it often takes a brokerage a couple of days to report a property as sold, depending on administration. For the inside scoop on whether a property is really still on the market, please contact us.

  18. If I just want to get in to see some houses, why do I need a Buyer Representative?

    A Buyer Representative does a lot more for you than just open up a house! In our consultative role, we listen carefully to your deepest needs & values so we will know how best to help you find the best property. We negotiate with your best interests in mind, acting as an intermediary between you and the seller & insulating you from costly mistakes. Finally we handle the (literally hundreds!) of transactional details so that you don't have to.

  19. Is a Buyer Representative's service free to me?

    Yes! The Buyer Representative is typically compensated by the listing agent for the property once a purchase has been made, so we act on contingency when working for you.

  20. Do I need a real estate lawyer if the offer documents are pretty standard?

    Yes. Though the Agreement of Purchase & Sale and related documents may be standard, and of course we will explain all of their ramifications, your lawyer will need to search title for the property to ensure it is free from encumbrances. They also provide many more important services. If you do not have a real estate lawyer please contact us so we can recommend one to you.

  21. How much do I have to put down on a property when making an offer?

    Offer deposits are generally 5% of the offer price, rounded up. Getting a certified cheque or bank draft for this amount can make a great difference to sellers, especially in a multiple offer situation - you will be seen to be prepared, confident and serious about buying the property.

  22. What are homes selling for on a certain street?

    We'd be happy to send you information on recent sales on a particular street - to satisfy your curiousity, show you how your investment is doing, or as part of your buying or selling research! Just let us know the street and we will send you the most current data.

  23. Offers are being accepted by fax on a property I'm interested in. What does that mean, and how does that affect my chances of getting my dream home?

    Our clients frequently encounter this situation when offering on homes - it most often means the sellers are out of town. To help increase your chances of getting the home, since the sellers will not get to meet us face to face, we will write a letter to the sellers introducing you and letting them know more about you!

  24. What happens if I buy a house and the sellers don't deliver on their promises?

    Occasionally this happens...it's unfortunate. Our course of action depends on what they have failed to deliver on - for instance, if the house is not in broom swept condition we will contact the sellers' agent to ask them to rectify this. More serious issues often will involve your lawyer. We will advocate on your behalf to help ensure you are compensated!

  25. Do I get a better deal if I buy a house being sold by the bank?

    Sometimes homes are listed as 'Power of sale', which means the mortgage holder has obtained the right to sell the home and retain the proceeds when a mortgage is in default. These homes are listed at fair market value, though there may be room to negotiate.

  26. What's a CVA?

    A Current Value Assessment is what the City has valued a property at for the purpose of calculating property tax. It may or may not be close to the actual market value of the property.

  27. What is an SPIS?

    A Seller Property Information Statement is an optional form that sellers can fill out when listing their homes. The seller warrants as to certain information pertaining to their home, such as their knowledge of any structural problems, details on mechanical systems and upgrades etc. If you are interested in a specific property we can let you know if there is an SPIS available and send you a copy of it.

  28. Hi Julie, our offer has been accepted on the house we're interested in, tommorow I'll be giving them my 10,000 deposit,I'm having second thoughts.. could I still backout from it?

    Hi there! This issue needs to be discussed with your agent - there are a number of circumstances where you may be able to depending on the terms and conditions of their offer. On the other hand you may not. We cannot comment definitively as each situation is different - we're glad you have an agent to consult with! Best of luck.

  29. Hi Julie, I am planning to move to Toronto by April next year. Right now I am working in Abu Dhabi, United Arab Emirates and I am visiting Toronto on 3rd July 2008. Will it be possible for me to buy a property in a good neighbourhood in Toronto while I am still working in UAE. By July end 2008, I will have my PR Card done. Awaiting your reply, regards, Aju C.Paul

    Hi Aju,

    For sure you can purchase a home while still living abroad! We recommend you speak with a mortgage broker about all your financing options. We have numerous mortgage brokers to choose from - if you don’t know one you can try Calum Ross' team at www.calumross.com or Carrie Davidson at cdavidson@dominionlending.ca . They're experienced in helping people from overseas realize their housing dreams. They will let you know specifically what government documents you need to obtain financing.

  30. Hi Julie, My husband and I are immigrating to Canada and have just applied for visa's etc. It takes around 48 months in the UK for everything to go through. We have enough points to get in, so it's just a question of waiting.....could you advise us of neighbourhoods in Toronto that would suit our requirments please? We would like to buy a house with at least 2 bedrooms and a garden (we have a dog) and we would like the house to be on the lake shore. We would like to be within a 30/45 min commute into central Toronto for work. I know that 48 months is a long time away but we are starting to do our research and would really welcome your input. I look forward to hearing from you. Kind regards, Debbie

    Hi Debbie,

    Congratulations on getting the ball rolling to move here! It sounds like a long process but we'd be happy to help you through it. You can read about the neighbourhoods we specialize in on our website - each neighbourhood has a thorough write up with lots of information and statistics so you can see what homes are selling for. The best way of course is to visit Toronto for yourself to get a feel for the neighbourhoods - there is the Beach in the east end which is on the water, also downtown if you are interested in condominiums, and several west end neighbourhoods might suit your needs. To see listings of available homes, please fill out the buyer profile on our website - it's a link on the left hand sidebar.

    Look forward to guiding you home in Toronto!

  31. Hi Julie, we have made an offer on a house and it has been accepted. One of the conditions we put on the offer is a home inpection, another is our house selling. We are thinking of having the inspection done immediately (before our house sells), is this a good idea? Our thinking is that if for some reason we are asked to waive our conditions to keep our offer ahead of another offer then at least we will have done the inspection first. Also, if something serious is discovered in the inspection we can back out before our house sells or before wasting too much time. Any input would be greatly appreciated, thanks.

    Hi Christie,

    What a great question! Definitely something to speak with your agent about because it could depend on the wording on your offer. For example, if the sellers are allowed to consider other offers with only 24-48 hours to notify you of them and to force you to waive all conditions or else lose to the offer offer, it definitely would make sense to have the home inspection now. Otherwise you could be forced to simply waive all conditions or risk losing the house, and you might be ready to waive the condition that your own home be sold if there has been lots of interest in the home, but would have to rush to get that inspection at the last minute. Again, it really depends on the exact wording of the offer so please check with your agent! Good luck with all your plans.

  32. We put an offer for a house A with 2 conditions, inspection and buyer arranging financing satisfactory to him at his sole discretion within 5 banking days. Our banker gave us lot of trouble to get the mortgage papers and we withdrew the offer on night of 5th banking day. we got the mutual release letter and deposit back in 3 days. Now, we are buying another houseB at exactly the same amount. This time we sorted things with bank as we started the process earlier and closed the deal. The seller of house A said he is going to sue us as it is the same amount and now we are Ok with financing and buying another house. Based on your experience, what do you do in these situations?

    We are not in a position to give any legal advice. Technically there is no law against not firming up an offer, if the condition states your sole discretion. You may want to discuss this situation with your lawyer and Realtor.

  33. Hi Julie, I have made the deposit of $5000 , bought house for $310000,condition is waived. The closing is 11th march, but i am thinking to back out as I think even though the mortgage is approved I am having difficulty arranging finances. Can I back out will the seller put any litigation on me. Please advise

    Once conditions are waived you are responsible for buying the home. The seller will have opportunity for recourse and has a legal case. Most times if a buyer backs out of a deal like this, the property goes back on the market and the buyer will have to pay any difference in sale price as well as any costs for damages (ie the seller has extra carrying costs, issues with their potential new mortgage etc.).
    J.

  34. We are moving to Canada - Toronto in May from the UK. How much deposit do you need to put down on a house when we buy? we are looking for a short term sub let and to buy really quickly.

    Hi there, traditionally you will need to 5% down. Anything less than 20% requires a mortgage insurance that your bank can arrange for you.

  35. What happens if the buyer puts a offer with no finance needed or home inspects. They put a $5000 deposit. They have signed the offer. But the next week they claim one of them have lost their job. What happens to their deposit.

    Their deposit is held until the situation is sorted out, and is used towards any damages caused to the seller.

  36. We have been in Toronto for 6 months under a work permit visa and we plan to apply for permanent residency next year. Is it possible for us to purchase a house now? thanks.

    That is best answered by a mortgage professional. Sorry that's not our specialty. Good luck!
    J.

  37. Do I need to ask the seller if he would accept a price that I offered before I put an offer? That is do we need to agree on the price first before I put the offer? If we agree on the price verbally and then I put an offer. Can he come back to change the price? Thank you!

    You don't need to ask the seller first if they would accept a certain price before submitting an offer. The negotiation process will begin when your signed offer is presented to the seller. In Real Estate, an offer is only binding if it is in writing.

  38. Julie sold house closing July 23,2010. On July 19, 2010 buyer claimed more work to be done to house than he can afford. He signed off all conditions after inspection. Can he back out on us?

    It would be best to seek advice from your lawyer regarding this situation.
    Good luck!

  39. Julie, we are interested in purchasing a home. However when called real estate agent he stated that an offer was accepted with conditions. Does this mean that no more offers can/will be accepted perhaps without conditions?

    Hi there. When a property has sold with conditions, it means that no other offers can be considered unless the deal falls through. If you're interested in purchasing a home, I highly recommend having your own agent to help guide you through the process; the seller's agent is working for the seller. We would be happy to help! Just fill out a Buyer Profile on the left hand side of our website and we'll get you started.

  40. Help - weève put in a non conditional offer just to discover it is the sellers bank we are dealing with as he is in arrears. Our offer is 9,000.00 under due to the condition of the house.

    Hi Bev. Please consult your real estate sales representative or lawyer.
    Good luck!

  41. Help - i put a deposit down for $7500 on a home in Toronto,ON. I was pre-approved for a mortgage with conditons. The closing date is approaching but I have not been successful in meeting my conditions (going through a seperation). What happens now? Can I be sued? Do I loose my deposit? Does this affect my credit history?

    Hi there,

    I strongly suggest you contact your lawyer.

    I hope it all works out for you!

  42. Hi Julie. In general, I know it's ideally best to try to "buy low, sell high" in terms of real estate. However, if I'm faced with a choice of purchasing a property that is very reasonably priced but I don't have the potential of making a huge profit down the road ("buy low, sell low") VS puchasing a property that is expensive but that may yield a high profit in the future ("buy high sell high"), which is more advisable in your opinion?

    Hi there,
    Yes, ideally it is best to buy low and sell high. It's true that over the past decade those who have bought larger and more expensive homes have seen the greatest return on their investment. If the market changes they will also be the hardest hit. Of course there are so many other reasons to buy a house besides economic. If you'll be living in it, will it bring you comfort and enjoyment? Can you afford it or would you be house poor?

  43. Hi Julie, We made a deposit of 10,000 last week and my conditions have been waived after they agreed to reduce the price of the house after the inspection (some work has to be done). Now, we are having second thought and would like to back out. What will be the implications, legal or otherwise? Is there a chance that we can get back our deposit or part of it?

    Hi there,

    This is a question best directed to your lawyer or Realtor if you have one.

    I hope it all works out.

  44. Hi Julie, Our child (a new graduate from a Canadian university) has been moved to Toronto recently. We,as her parents would like to support her buy her own apartment (around or less than 100 square meters) or a small house. We do not want to spend too much money. What is the market price now in Toronto? Can you help us? Thank you.

    Hi there,

    Congratulations to your daughter on her recent graduation from university!

    The market varies greatly depending on the neighbourhood. We can help you make some good decisions. To get started, please fill out the following link from our website and someone will be in touch.
    http://juliekinnear.com/toronto-buyers/buyer-profile

  45. My boyfriend and I are getting a condo.if the mortgage is in his name,could I get my name in the property, or should we both get the mortgage in order to be a owner?? Thank you!'

    Hi Mary,
    Congrats on getting a condo!
    My advice is to make sure you both have a clear understanding of what you own and the documentation to back it up should anything happen to your relationship. I suggest you consult a lawyer.

  46. Hi Julie, I am planning to move to Canada to reside permanently and currently do not hold Canadian Citizenship, is that possible to get a mortgage as being non-Canadian? Or how many percent should I pay as a down payment to be eligible for mortgage? Thanks

    Hi Saran,
    I suggest you consult a mortgage professional. Carrie Davidson gives exceptional advice. cdavidson@dominionlending.ca
    Good luck!
    Holly

  47. I have agreed to sell and excepted the offer on my house.But now I can not obtain a mortgage can I back out the deal before the finances for buyer goes thorough.

    Sounds like you're in an awkward position. Not knowing all of the details I can't really offer you advice. Please consult your lawyer.

  48. I excepted an offer to sell my home the buyer has seven days to gain a mortgage. But I cannot obtain another mortgage due too credit can I back out of deal with two days left for buyer to obtain mortgage. I live in Ontario, Canada

    Hi again,

    Sorry you're in (were in) this position. I hope it has worked out okay.

  49. Hi Julie I bought house couple of months Back in Pickering this is the biggest mistake of my life coz I found house need lot of maintainance plus my wife doesnot like at all and I have fights and arguments for this every min and dts freak me out Now my question is dt cAn I buy another house in as per my wife's choice n switch my morgage can u pls help me out coz my life is about to end mean divorced coz of this mistake pls Julie help me

    Hi there,
    I'm so sorry you're going through this!
    It all depends on what kind of mortgage you have. Some mortgages are "portable" meaning you can take it to the next house without penalty. I suggest you consult your lender as your first step.
    Good luck

  50. we have made an offer on a home with 1000 dollar deposit, the offer is about to expire and we are not going to extend the offer as our house is not selling, what happens to the deposit?

    If you have included a condition of selling your home in your offer and it has expired, normally the deposit would be returned to you via a cheque from the listing brokerage. Double check with your representative as to how the condition was worded.

  51. hi julie we sold our house and the day befor the closing they found a miner problem we agreed to fix the problem but are still giving us a hard time about buying it they did sign apresale agreement can they still get out of the deal

    Hi Yvonne, it's best to consult with your sales representative or a lawyer.

  52. Hello I will be moving to Toronto next year. my question please: If I buy a house, does it mean I will own the land of this house as well in Toronto? I mean can I demolish the house I bought and rebuild it or leave it vacant lot and sell it? Thanks and best regards

    Hi there,

    Great decision! Toronto's a wonderful city in which to live.
    re: your question. In most cases, if you buy a house you also own the land and can pretty much do, within certain regulations, anything you like to it. It's an unusual question. Are you a builder?

  53. Hello Julie, We are trying to finalize all documents for the mortgage co. of a house we want to buy, but are being held up by the buyer of our house because he hasn't produced a waiver of firm sale yet. Our home closing date is Nov 22.2011. We need this to satify our mortgage co. I've asked our sales agent how long will this take & he can't even give me an estimate. We can move into our new house on this date if we have the waiver produced. The closing for our house is Jan 1.2012. Can he back out on the purchase of our property? so many questions are NOT being answered-& to make things worse, our agents are both going on holidays today & also the buyer of our house is on holidays at the same time-what the? Please help-we are first time home buyers & they haven't been patient. We feel like we are being rushed because they all want to go on holidays. We also feel the buyer of our house is stalling. We have given him 2 extensions & also met all conditions. The buyer has sent over the fire inspector, the appraisor, the insurance inspector etc-everthing seems in order except the waiver of firm sale. Sorry I know this is long. If our agent is working for us, why can't he provide answers? Or is this a matter of holidays-maybe I'm wrong...Thank-You Dianne S.

    Hi Diane,

    It's Holly answering your question.
    It sounds like a frustrating situation and I hope that it has been sorted out by now! I'd advise you speak with your agent and voice your concerns just as you have explained them here. Ask for further clarification. If you still aren't getting the answers you need, speak to to the broker/manager of the brokerage.

  54. We are interested to buy a brand new house in the next 30 days. They require $5,000 deposit first, then another $5,000 two months later and $3,000 60 days before closing. Since we are living in a very unstable economic environment, I am wondering if my husband lose his job 60 days before closing and can't come up with the $3,000 as they want. What options do we have? How can we get our deposit back? Can we sell it or do we have to go to court in order to get our $10,000 deposit? Would you sugguest us any legal action just to protect us? Thank you. Helen.

    Hi Helen,

    If you are concerned, I would suggest you speak with your agent or a lawyer and go over the fine print of the Purchase Agreement.
    If your financial situation is unstable, it would be a good idea to save up an emergency fund of about 6 months of living expenses before buying a house.
    I hope all goes well!

  55. Hi Julie, My husband and I would like to sell our home to downsize now that all the kids are gone. We have over 120,000.00 in equity we will be using for our downpayment. Do we have to give $$ on an offer to our next home? We do not have alot of additional funds at this time.

    Hi Lori,

    To make an offer on a house you will need to have a deposit of approximately 5% of the purchase price. Sometimes you can get away with a bit less but in Toronto's rather hot market, a larger deposit amount can make a difference.

  56. Hi Julie we are in the process of buying a home we have been preaprroved and are now awaiting inspection on the home we have put a deposit on...the problem is my husband just got laid off what can we expect to happen now

    Hi Neely,

    I'm so sorry to hear that your husband just got laid off. Since you are presumably under contract with an agent for the purchase of the home, please ask them for advice or consult a lawyer.

  57. Hi Julie. I live in Kitchener Ontario and just bought a condo townhouse 6 month ago. The mortgage is under his name and my name. We are approved on a 5 year term. We will be separating (we are common laws if it matters) I am planning to sell the townhouse and have my mortgage term transfered to the new house. Is there a fee when you xsfr the mortgage? Apptmly how much? And how should I start this process to sell and buy another house? Do I waiT for the house that I want to buy then contact my agent, then agent will sell house? I don't know how to reaLly start...

    Hi there,

    I'm sorry to hear about your complicated situation.

    There is usually a penalty for breaking your mortgage and it varies depending on the lender. I suggest you get advice from your lawyer. I also suggest that you get in touch with your agent as soon as possible before you start the process of looking for a new home. If you need a referral to a good agent in Kitchener, contact us at team@juliekinnear.com.

  58. Hi Julie I am at the closing date of a property i am buying and stopped buy the lot and there has been trees cut off the property after we had a signed deal so the property is not in the same condition that it was when i made the deal what can I do about this Thanks Gus

    Hi Gus,
    That's so sad that trees have been cut off the property. Please consult the agent who helped you buy the property or consult your lawyer for their advice.

    Good luck.

  59. Hi Julie I live in toronto ontario canada , my question is....if once my mortgage is approved by financial instituation and i wave the mortgage clause on sale agreement is it possible financial instituation can backed out at the time of closing and i loose my deposit..is this ever happens?????

    Hi there,

    If you are unable to provide the documents required to substantiate your income or if your personal financial situation changes drastically it could affect your ability to get a mortgage. If you are concerned, please speak with your mortgage broker, the agent that helped you buy the property or your lawyer.

  60. we want to buy a new home but we are scared in case the prospective buyer of our current home mayy back out. are there ways to protect ourselves in case this happens. our home is a highe end home. thanks alot. Sara and Joe.

    Hi Sara and Joe,
    Congrats on deciding to buy a new home! There are many things you can do to protect yourself. If I could have more information on your particular situation I could give you some good advice which will either encourage you to move forward with the project of buying a new home or help you decide to stay.

    Please email me at holly @juliekinnear.com for more information.

    Holly Chandler

  61. There is a house for sale "as is"; however, the electricity is cut-off so how do I know if anything is working. I don't want to buy not knowing.

    Hi there,

    When a house is being sold in "as is" condition, you have to assume that a lot of things won't be working and be willing to take that risk. The only thing I can suggest is that you do a home inspection.

  62. We are buying a house we like, one condition is we do a home inspection, do we have to actually do one if the house isn't old and was very well taken care of. Is it ok/legal to skip it?

    Hi there,

    It 's advisable to do a home inspection even if a house isn't old and has been well maintained. It's legal to skip it but not recommended.

    Good luck with the house.

  63. If the property tax for a house is 1700 a year is the selling price 220000 to high?

    Hi there,

    It really depends on the area. In downtown Toronto I've seen condos with a tax bill of $1700/yr sell for $300k. The yearly tax bill for a property is not the best way to determine a reasonable sale price. It's best to base the value on the past sales of comparable properties.

  64. Hi Julie, I had a rough time financially and was unable to keep my house.I tried selling and there was a short fall so the sale did not go through.As a result the bank had to sell the property.I am 28 and hoping that perhaps in the future I can own a home again. Do you think it is possible to EVER get a mortgage again?

    Hi Deena,

    I'm so sorry to hear about the loss of your house.

    It is possible to get a mortgage again! Focus on getting your financial situation on solid ground, save up some money, consult a mortgage broker to get some good advice and stay positive.

    Contact office@juliekinnear.com if you'd like the contact info of some excellent mortgage brokers.

  65. in the case of house selling, if the seller received a deposit from the buyer, does he/she has the right to terminate the contract later on and ask the buyer to withdraw their deposit?

    The Agreement of Purchase and Sale is a contract that binds both the Buyer and Seller so no, the Seller doesn't have the right to arbitrarily decide to back out of the deal. Can you imagine what could happen to the poor buyer and their family? Maybe they have already sold their house and have nowhere to go? Anyway, it never hurts to ask as you never know, maybe the buyer wants out as well.

  66. julie i buy the house and give 10000 dollar for depoist and my morgage agent giving me hurdle that one bank has denied and now he is trying to other lander , if i can not get the morgage than wt happen to our depoist money, as our closing date is also passed .thnks

    Hi there,

    It sounds like you're in a difficult position. I think it's best that you contact your lawyer for advice.

  67. We have agent who has listed our house for us. We understand he will receive a commission once he sells it. However, we found a home on our own, that we would like to purchase through a builder's contract via another agent. Are we obliged to pay our current agent a commission even though he had no participation in finding us this home? Or do we pay the agent who represents the builders? Or do they split the commission? We have been asked by our current agent to sign a representation contract after putting an offer in on this new house? Is this ligit?

    Hi Deb,

    This is a bit of a tangled web of agents! I'm sorry I can't really offer any advice without stepping on anyone's toes. Since you'll be using the services of a lawyer for your closing arrangements, I suggest you give them a quick call.

  68. I am selling my home and the potential buyer has put in conditions of home inspection, I have taken them out, will I be leable if he finds problems after closing?

    Hi there,

    Thanks for your question. If you know the house has deficiencies but aren't disclosing them, you could be liable.

  69. Hi Julie, I want to make an offer to buy a home before selling mine and waive the conditions of sale of mine in order to get the house. What are the implications if I don't sell in time

    Hi there,

    If you don't sell your house in time, you risk having two mortgages or not getting financing for the one you've bought.

  70. Hi, when you do a conditional sale, do you have to have the $1,000 deposit sitting in your account the day you sign the "conditional sale agreement" or does it come out of our account the day we transfer/wire the owners the money? Thanks :)

    Hi there,

    In Ontario, the deposit is due within 24hrs of signing the agreement whether it is conditional or firm so yes, you must have that money in your account.

  71. hi julie. We made an offer to buy a home. The broker is asking us for a 20 000 dollar deposit. We find it high. ?Is it common to have to leave such a high deposit?

    The typical amount for a deposit is approximately 5% of the purchase price. A seller may accept a lesser amount or demand a higher amount; it's all part of the negotiation process.

    Good luck!

Send Julie your buyer questions!


Question:
Email: 1

1 - optional, used to notify you when the question has been answered

Include your name at the bottom of your question if you would like to have your name published with your question.

19 Comments

19 Comments

  • Brittany

    Hi,

    I hope that you can assist me. I have done a lot of research on this and still cannot find an answer. I will be a first-time homebuyer. We plan on getting an agent or broker but I have no clue what I would need to pay them to show us houses and help us in the search, if anything at all. I read that my agent would get paid through the seller, but it seems odd to me that I would not have to pay anything. On a house between $150,000 and $260,000 should I expect to pay the broker/agent $5, $100, 10,000…? I have no clue how to determine the base amount or the commission amount if I need to give it at all…. Thanks!

  • pammey

    i am buying an moblie home did the inspection when i was there the inspector found lots of mold and bad wood can i back out, i think its a lemon????

  • Julie

    Best to discuss with your agent – depends on the contract that you have signed. Good luck!
    J.

  • Julie

    Generally speaking the buyer’s agent is compensated through the proceeds of the sale when you buy (which is the commission that the seller agrees to pay and is written in their listing contract). On occasion a seller is not willing to pay a commission to the buyer broker and at that time, you will need to pay your agent directly instead. It is all very clear in the buyer agency agreement (BRA), and it states just that above – so when you meet with your agent go through it with them.
    good luck!
    J.

  • john

    i saw house listing in the comunity flyers without an agent i called the seller agent he showed me the house then he act as a seller and buyer agent then finaly i put a conditional offer after home inspection i waved the condation a month passed that i find the house is smaller by 300 to 400 sq feet as he told me and advertized it now my closing date is 40 days left my deposit is 10000 dollers can i get my deposit back or get out of the deal.thank you sooooo… much

  • stephanie

    This situation would be best discussed with your real estate lawyer. Good Luck!

  • Ellen

    Hi,

    I’m looking to buy a house and I was wondering, if I were to make a conditional offer, how long typically would the seller give me to get a mortgage from the bank?

    Thank you.

  • stephanie

    Hi Ellen, The offer would be conditional on financing in which you would from that point go to your bank and or mortgage lender for financing and that can take 3-5 days. It varies depending on your lender. It is very good to get pre-approved for a mortgage before you start and or at the beginning of the process that way you will know what exactly you will have to spend and it can protect against interest increases.
    Hope this helps you, The Julie Kinnear Team

  • Colin

    Hi There,

    I have a question re house rennovations. At what point does it not make sense to keep updating an original home in a neighbourhood where the majority of sales are subsequently double-deckered? We live in a bungalow in the St Clair/O’Connor area and are considering a complete first floor renno. I’m not sure this is a prudent use of resources, given that we intend on selling within 5 years, as there is a strong possibility the house would be double-deckered after it is sold. In short, we would not really recoup the renno costs. Any advice?

    Thanks,
    Colin

  • mr Sundy

    am an African i want to know my right if i buy a house in Canadian as a house owner .

  • stephanie

    Hi Mr Sundy, If you go back onto our website under BUYERS we have a Home BUying Guide to help you and you can also click on this link to help you.
    link to juliekinnear.com

  • Quality Property Management Services

    Great stuff presented by you. All the questionnaires with answers have made my all doubts clear. Thank you for sharing.

  • Robin

    You cover all the questions of buying and selling property related and you can often advise you in advance whether a property is likely to have multiple offers.

Leave a Comment

Julie's Tweets

  • "A building has integrity, just as a man and just as seldom!" - The Fountainhead transcends time! @IEphemera @tcm,
  • "You can't hope to survive unless you learn how to compromise." - The Fountainhead transcends time @MovieClassicsWP,
  • Did you watch and want a ? They may have invented one finally! ,
  • How lucky am I to be at conference in sunny San Diego? Just out on break... The setting is inspiring too!! ,
  • "It's the things that we admire or want that enslave us..." The Fountainhead transcends time! @biscuitkitten @HQofK,
516 people like The Julie Kinnear Team