Here are the main indirect costs that a buyer must include in his budget planning: Building inspection, Accredited property appraisal, Transfer duties (welcome tax), Notary fees, Loan application fees, Fees moving, Adjustments and distribution of taxes (municipal and school).
Welcome tax is a term commonly used to refer to real estate transfer tax. It is calculated from the highest amount between:
This amount will serve as the tax base from which a calculation will be made using the different tax brackets relating to the year in question. Note that these brackets are different for the City of Montreal compared to other municipalities in Quebec and that they are increased each year according to the consumer price index for Quebec.
The mortgage pre-approval is a tool that helps in the search for property. Indeed, it will allow you to establish your budget and your ability to borrow so that you know the maximum value of the properties you can consider buying in relation to your borrowing capacity and your down payment.
It also provides you with a considerable financial advantage since it guarantees you a mortgage rate for a minimum period of 90 days. It therefore protects you against an interest rate increase that could occur during negotiations. In addition, it allows you to benefit from a possible reduction in the rate if it is lower when the deed of sale is signed.
Finally, the pre-authorization proves your seriousness to sellers and facilitates negotiations since you know exactly your borrowing capacity.
We can compare the form Declarations of the seller of the immovable to a property resume. Indeed, the seller enters all the information on the condition of his property to the best of his knowledge while acting in good faith. This form is an essential tool for the buyer because it will allow him to make an informed decision with full knowledge of the facts on the purchase of the property.
Here is the list of the 4 criteria that an inspector must respect:
Be sure to take these criteria into consideration when choosing an inspector, it is crucial for your protection in the transaction.
Here are some questions to ask yourself when choosing a real estate broker:
The size and layout of the rooms
– 62% mentioned wishing their house was bigger or with different layouts.
– 40% said they paid too much or regret not having put a larger down payment on the purchase.
– More than 25% admitted to not liking their neighborhood.
– 24% said they had regrets about their courtship.
– 12% of these people want a bigger yard
– 12% wish to have a yard that requires less maintenance.
– Nearly 17% said they would like a different parking configuration.
Most of these regrets are due to an emotional action taken by a buyer who does not take a step back to analyze the situation. Hence the importance of doing business with a real estate broker when buying a property!
– The defect must be serious
– The defect must be unknown
– The defect must not be apparent
– The defect must exist at the time of purchase
– The defect must be reported within a reasonable time