The Purchase Process

Once you found a property, the following are the steps of the process until the closing:

1.      Make an offer: Get comparables before making an offer as this information will help you negotiate the right price. If getting financing, be cautious to fix the closing date as far as possible to avoid having to extend the closing date with a contract amendment.

2.      Deposit: Once the contract is accepted by both parties, the buyer will have to wire the deposit to an escrow account, usually the deposit is kept by the Title Company, a third party, neutral, that will distribute accordingly at the date of the closing. There is a deadline for the deposit to be done or the Buyer will be in default.

3.      Condo docs: In case it is a purchase of an apartment, there is a 3-day period for the seller to deliver the Condominium Documents to the prospective buyer, if this does not happen, the process could be stopped. The Buyer has to right to cancel the purchase.

4.      Inspection: There is a period, if not specified differently, usually 7 calendar days after execution of contract, for the buyer to do the inspection of the property. Before this period ends, the buyer could let the seller know if he wants to renegotiate based on the findings of the inspection, if no action is taken in this regard, the process continues and the buyer looses the opportunity to any claim. The buyer is responsible for paying the inspection.

5.      Appraisal: If the sale is not a cash deal, the financing institution will do an appraisal of the property. The buyer is responsible for paying the appraisal. This is crucial as if the property does not appraise, no financing will be given to the property and there will be no deal, unless the buyer is able to and willing to come up with the difference in cash. If the deal falls through due to financing, the deposit will be reimbursed to the prospective buyer, costs that are not reimbursable would be the inspection and appraisal.

6.      Association approval: In case of a condo sale, the buyer will need to go through a screening and interview to get approval of the Condominium Association. There will be a fee, usually for each person buying the condo, and in case the persons are not approved, the sale cannot happen and the deposit  is returned to the prospective buyer.

7.      Closing: The buyer will need to bring the balance to complete the purchase at the date of closing.  Title Insurance will be purchased at a one time fee, this will protect the owner in the event the title property is found to be invalid.

8.      Insurance: There are some insurance coverages to get before closing, speak to an insurance broker before closing as to get quotations, coverages, deductibles. The ones to consider are the homeowners insurance, Flood insurance, home warranties (apply to new developments)

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