Buying a home is an exciting adventure, but choosing a house you like and making an offer on it is just one step of many in the buying process. There are three dates first time buyers should know about and may not be aware of when starting out in the home buying process. If you’ve never made a real estate purchase, you probably have a lot of questions about how the transaction happens. Your RE/MAX of Nanaimo agent is ready and able to help you make the journey easier whether you are a first time buyer or not. While you choose your agent, here is a break-down of the steps you might go through on your way to a new home, after the initial offer and deposit.
Step one: Subject removal
Removing subjects on the sale is generally the first hurdle you’ll have to go through. You’ll want to ensure that the house is up to your standards, so you’ll have an inspection done. If it’s a condo or other strata property, your REALTOR® will advise you to look at the strata documents from the last year and make sure that the organization is run to your satisfaction. Other common subjects include ensuring the ability to get financing (AKA a mortgage, for the uninitiated), fire and property insurance (which can be tricky with some heritage homes), a title search, and a site survey.
Step two: Completion
Once your purchase goes subject-free, things get real. Completion is when the title of the property legally changes hands, either through a notary or a lawyer. Your REALTOR® can make recommendations based on your needs, so if you don’t know what the difference is between these legal entities, you’ll be able to make an informed decision in terms of your representation. The completion day is also the day your deposit is released from being held in trust. These funds will go towards the purchase price of the home, be returned to you, or be handled in some other way according to your contract.
Step three: Possession
Now you really own your home! It was legal before, when the title changed hands, but possession means that you can move in. There are always exceptions in special circumstances, but most of the time, possession takes place on the day of completion or one day after. Another date you’ll encounter is the adjustment date, which is the day when the new owner takes over the costs for the property (such as property taxes, mortgage, insurance, and/or strata fees). This generally coincides with possession, but again, there can be other mitigating factors that change it.
First Time Buyers
A lot of the time, first time buyers have a general idea of the events that take place after making an offer, but they’re still a little unsure about the timeline. Now that you have a better idea, you’ll be able to work with your REALTOR® to draft a more appealing offer. If you have any questions, please just let us know, and good luck on your house-hunt!
What mistakes do buyers make when buying a home and how do you avoid them?
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