Real Estate in Canada: How to Buy Real Estate in Canada?

Canada being a developed North American country has a very well defined and mature procedure when it comes to buying real estate. Just as the United States, much attention and focus is attributed to protecting the rights of both the buyer and the seller. Although at times this can result in some very excessive documentation, buyers must always remember that following the process is usually in their best interest.

It is therefore strongly recommended that those people looking to buy some form of real estate in Canada get themselves pre approved, if they are seeking a loan to buy real estate. A pre-approval not only provides the buyer with an estimate of the loan that they can qualify for, it will also give the seller the required confidence in the financial ability of the buyer. Additionally, a buyer with a pre-approved loan can now focus on the properties which are in line with their budget rather than spending time and money on finding properties which later on turn out to be beyond their financial capacity.

A good place to begin for a buyer of real estate in Canada is to find a licensed real estate agent. A licensed real estate agent who understands the budget and the kind of house the buyer is looking for can more often than not find properties which might be hard to find otherwise. A licensed real estate agent can also assist a buyer of real estate property to prepare and submit purchase offers, negotiate with the seller or the seller’s agent and help to ensure that the entire process is smooth and always transparent to the buyer. In addition to a real estate agent, a buyer of real estate in Canada will also need the services of a lawyer or a notary if the buyer is purchasing the real estate in Quebec. The lawyer (or the notary) will ensure that all the processes will be followed and might help to ensure the legal interest of the buyer of the real estate.

After identifying the property, the next step in the process is to furnish a legal document to the seller also known as an ‘Offer to Purchase’ or ‘Agreement of Purchase and Sale’. If the buyer has a real estate agent or a seller, they will prepare the document for the buyer and make sure that the terms and conditions stated in the document along with the price are what the buyer and the seller had agreed to. More typically, the document undergoes several revisions as the seller and the buyer review it, in order to ensure that their interests are honored in the document. Once the terms and conditions have been agreed, then the agreement becomes finalized.

The buyer of real estate in Canada should also be very aware of the costs involved in buying a property. Listed below are some of the costs that the buyer might have to incur:

o Mortgage insurance and loan application fees.
o Appraisal fees.
o 5% deposit that is typically paid when an offer to purchase is accepted.
o Down payment of around 25% less the 5% deposit.
o Home inspection fee.
o Land and deed registration fees.
o Prepaid property tax refund.
o Home insurance.
o Survey costs.
o Legal fees.
o Title insurance.

The last and final step in the process is in the closing of the escrow. On this day, the transaction will be completed and the ownership will be transferred to the buyer. The buyer will now have the title deed registered in their name.

Article Source: http://www.realestatepropertyarticles.com.

About the Author:
Ann Sommers is a contributing real estate editor at http://www.realestatepropertyarticles.com/. This article may be reproduced provided that its complete content, links and author byline are kept intact and unchanged. No additional links permitted. Hyperlinks and/or URLs must remain both human clickable and search engine spiderable.