An Agreement that works for All Parties
Here are the steps we take in the process of buying your home.
Proposal Process (about 7 days)
1) We will gather information about your property and situation to try and create an offer based on the information provided.
2) We present a proposal/offer with the basic terms of our offer.
3) If the terms in the proposal are acceptable, we will then start preparing a detailed agreement for your approval.
Draft of Agreement Documents (about 4 business days to draft)
1) We will prepare a package of documents for your review and approval. We will prepare a main contract (the Agreement) that outlines the main terms of the purchase, and provides dates for conditions that must be fulfilled to make the contract binding for both parties. The Agreement will outline the terms including price, purchase conditions/terms, and start date of the contract. This Agreement should be reviewed, signed by the Seller, and sent back for our signature. Each page should be initialed as well. This Agreement usually does not need to be notarized.
2) The Agreement may list some additional documents that need to be signed and notarized by the Seller. These do not have to be immediately signed and notarized, but will have to be provided by the date specified in the Agreement. You are welcome to have all the documents reviewed by your lawyer.
The main parts are:
– Agreement. This can be in a few different formats depending on what we have negotiated with you. It may be a Lease with Option to Purchase, a regular Contract of Purchase and Sale, a Trust Agreement, or some other format.
– Power of Attorney (POA). The POA allows us to manage and get information about the mortgages, taxes, strata etc. without having to bother the seller.
– Waiver. The Waiver acknowledges that you understand the process.
– Other. We may also require additional forms that allow us to register our Agreement on the title (such as Form C in BC). This allows anyone to see our agreement and protects both parties. Sometimes we will also ask for a blank Transfer Form. This form is a title transfer form that is kept on file ONLY to use if you cannot be available when we want to pay you out and transfer the property to the new buyer. It cannot be used until all mortgages and liens against the property are fully paid.
3) Originals of all documents must be presented to the Buyer by the date indicated.
Signing Agreement and removal of any Subjects or Conditions (depends on conditions listed in the Agreement)
1) In most cases our offer is based in part on information provided by the Seller. Once we have the Agreement signed, there will usually be conditions in the Agreement that need to be satisfied by a certain date such as inspection of the property, review of the title, and verification of the balances of loans and liens against the property. If there are any tenants, we will want to verify the terms of any leases. If we need financing, we will have to show this agreement to the bank to obtain the financing.
2) We will remove any subjects in writing by the due date.
After Subjects are Removed and We Have a Solid Binding Agreement
1) Please send original notarized copies of all remaining documents to us prior to the closing date indicated in the Agreement.
In most cases, we will be making payments direct. If possible, please provide online access for us to manage the accounts.
1) Mortgage. If possible, please provide online access for us to view and pay. We may ask you to help us change the billing address and/or set up preauthorized payments from our bank.
2) Strata (if applicable). If possible, please provide online access for us to view and pay. We may ask you to help us change the billing address and/or set up preauthorized payments from our bank.
3) Taxes and City Services. If possible, please provide online access for us to view and pay. We may ask you to help us change the billing address and/or set up preauthorized payments from our bank.
4) Insurance. Typically we will keep and pay for your existing insurance. If possible, please provide online access for us to view and pay. Provide a copy of your insurance if applicable.
5) Power/Internet/Phone/Cable. These can be cancelled as we will start new accounts.
The Completion Possession and Property Transition (as indicated in Agreement)
1) The Agreement will start on the completion or commencement date. Possession and Payments will start on the dates outlined in the Agreement. If payments start on vacant possession, you would move out by the date specified on the Agreement.
2) If payments start when we have placed a tenant/buyer, you would allow us to access the home for showings. You can move at any time up to the arrival of the tenant/buyer but payments start when we have confirmed and approved this date with you.
3) If we are taking over the existing tenants, please tell your tenant that there will be a new owner/manager. We will provide a Notice of Change of Landlord to the tenant. Please provide us with the lease and name, email and phone number for tenant.
During your Agreement until the Title Transfer
1) Relax and let us handle the property until we pay you out and take you off the title. We may occasionally ask you to assist us by providing statements or access to the mortgage, tax, strata, or other property related documents.