Toronto Real Estate Contract Basics For Home Buyers

The Globe and Mail published a great article this week for Toronto home buyers and what to ensure is included in any real estate contract. Of course, your Toronto real estate agent will know the terms and conditions that should be included in your contact, but it never hurts to know what to expect and what not to leave out during the home buying game.

What you shouldn't forget in your Toronto real estate contract.

Making an offer conditional on the sale of an existing home

If the money obtained from selling your current home is necessary to purchase the second home, make your offer on the home reflective of that, with an appropriate one- to two-month timeframe so the seller isn’t waiting around forever.

What’s staying or going

Even if it’s nailed down – unless it’s in writing – that stove or light fixture that the seller said he’d leave for you might not be there when you walk into your new home for the first time. Anything verbally agreed upon should still be in the contract.

Who’s paying for what

There are many different fees that are tacked onto the home buying process, among them: land transfer tax, title fees, notary fees and closing costs. The contract should state the amount the buyer wants from the seller to cover these things, if at all.

Home inspection clause

It’s not uncommon for a home buyer to make an offer conditional upon being satisfied with the results of a home inspection. This will allow the buyer to easily back out if there’s some serious hidden problems with the home that will necessitate an expensive repair, or the buyer can instead make an offer that is less the repair costs.

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