Once you decide on a realtor to work with, one of the first documents you will receive and review with them will be the RECO Information Guide and the Working With a Realtor Form. The purpose of this form and information is to fully understand the relationship between the brokerage/salesperson and yourself!

This guide outlines:

~ What services an agent provides to you as the Seller or Buyer

~ The risks of representing yourself

~ What happens when you decide to sign a contract

~ Understanding multiple representation

~ How to file a complaint

When navigating the complexities of real estate transactions, there are numerous advantages in letting your realtor take on some of the stresses and tasks in their professional capacity. All real estate salespeople in Ontario must be registered after having completed the necessary education. They are able to provide real estate expertise through valuable information, advice and guidance.

If you are a seller, an agent can…

~ advise you on market conditions

~ market your home through various media & channels

~ provide referrals to other professionals

~ arrange home inspections, appraisals, showings

~ vet offers & buyers

~ negotiate to achieve the best results, price & terms

~ guide you through paperwork & the transaction

If you are a buyer, an agent can…

~ assist with getting pre-approved for financing

~ bring awareness regarding tax exemptions

~ gather & share information regarding homes of interest & arrange showings

~ inquire about zoning, permitted uses, other home aspects

~ advise on competing offer situations & protecting your offer

~ negotiate to achieve best results, price & terms

~ guide you through paperwork & the transaction

~ provide referrals to other professionals

Duties the brokerage and agent owe to the client

~ undivided loyalty, meaning promoting and protecting your best interests

~ disclosure, meaning they have an obligation to tell the client about the transaction & relationship that could have an impact on client decisions

~ confidentiality, meaning any confidential information cannot be share without the client’s written consent, except where required by law

~ avoid conflicts of interest, meaning avoiding any situation that would affect their duty to act in the client’s best interests

Client responsibilities

~ being clear about wants & needs and sharing any relevant information (for example, zoning requirements, amenities preferred, etc.)

~ respond to the salesperson’s questions promptly

~ understanding the terms of the agreement (with the brokerage); this is very important to follow through with your commitment and responsibilities that you have signed for

~ pay the agreed upon fees, even if the agreement falls through because of your default or neglect 

When you become a client, you sign a representation agreement with the brokerage. The agreement is a contract between you and the brokerage for real estate services and representation. If you choose not to sign an agreement, you should not expect the real estate salesperson to provide you with any services, like showing you homes. I will expand on signing a contract with a real estate brokerage in an upcoming blog post, as it is often one of the first steps in finding or selling your property and can at times, be confusing!

What is a Mortgage?

When buying a home, most of us will be paying just a part of the purchase price and this is called the down payment. The remaining balance is generally covered by a lender. The lender will provide the loan, which is known as the mortgage. The mortgage is actually a legal contract between the buyer (you) and (your) lender. In this contract you’ll find the specifics of the conditions of your loan. The home or property acts as security against the loan. With a secured loan, the lender has the legal right to take away the property. This may occur if the conditions of the contract are not respected, including making timely payments and home maintenance.

Unlike most types of loans, with a mortgage:

• a property secures your loan

• you my still owe a balance at the end of your contract

• you usually need to renew the contract multiple times to pay off the balance

• you need a down payment

• if you need to break your contract, you will pay a penalty

• your loan is typically for an amount in the hundreds of thousands of dollars

• you may need to meet qualification requirements for a loan approval (like a stress test)

The Mortgage Principal

The amount you borrow from a lender for the purchase of a home is the principal amount. This amount usually includes:

• purchase price of the home minus your down payment

• mortgage loan insurance if your down payment is less than 20% or if your lender requires it

About Mortgage Payments

Mortgage lenders use factors to determine your payment amount. When you make your mortgage payment, your money goes toward the:

• principal amount

• interest

• optional mortgage insurance (if purchased)

• property taxes (if paid through your lender)

Important Mortgage Considerations

• Terms

• Amortization

• Interest Rate

• Types of Interest (fixed vs variable vs hybrid or combination)

• Payment frequency (monthly vs semi-monthly vs biweekly vs weekly vs accelerated weekly vs accelerated weekly)

• Property Taxes

When the market is unique and getting a loan can be daunting or challenging, there are actually numerous financing options to consider. If a conventional mortgage is not possible, there are ways to still purchase the property of your dreams. Additionally, it is also important to be familiar with some of the terminology you make come into contact with when speaking with banks and various lending organizations.

Further mortgage details will be covered in the following post. If you have any queries or are looking for some expert advice, it is highly recommended to contact a mortgage professional. Looking for one? Send me a message and I’ll get you in touch with a few!

Mold is a type of fungus present in our natural environment. Mold spores, which are tiny microscopic 'seeds', can be found virtually everywhere. Indoors, these spores can grow on building materials and furnishings if conditions are right for them. Excess moisture is the critical factor in any indoor mold -problem. Eventually, the moisture and mold will damage what it is growing on and can also be harmful to your health. The key to preventing mold growth is to prevent moisture problems.

If you suspect mold growth in your home (you may smell or even see it), it is important to act with urgency. The initial step should be contacting a professional for a thorough assessment. For both health and safety concerns, it’s important to have any mold removed as soon as possible and as efficiently as possible.

A professional will best assist in interpreting and properly handling your mold issues and concerns. However, as you wait for your appointment, you may still want to place mold test kits in various rooms throughout your home. Overall, homes are not completely sterile environments, so if you intend on investing in a mold detection kit, just be aware that mold spores are everywhere.

At the end of this post, I’ve made a few suggestions on which mold detectors and monitors you may like to consider if you’re not sure where to start!

MOLD CAN BE CAUSED BY:

• Water damage

• Leaking pipes, ceilings, roofs

• Areas with high moisture and poor ventilation (bathrooms, showers, etc.)

 MOLD SYMPTOMS:

• Range from mild to severe

• May vary throughout the year

• Sneezing

• Coughing, loss of voice, hoarseness

• Watery eyes

• Itchy mouth/throat

• Runny nose

• Asthma attacks in asthmatics

Should you experience any concerns or symptoms, seek medical attention!

TIPS TO STOP & AVOID MOLD:

• Limit your time outside. If it's rainy or wet, stay indoors. In wet conditions mold spores are active, so it's beneficial to avoid the outdoors in the rain.

• Wear a dust mask. A mask helps prevents inhalation of mold spores and is especially helpful if you are allergic or have asthma.

• Keep windows closed. During rainy conditions or at night, close your windows so that mold spores do not drift inside.

• Clean bathroom and basement often. Because one of the key factors to mold growth is wetness and moisture, clean sinks, faucets, showers, toilets, etc. regularly. Inspect your basement and any other space that is dark and dank. Use dehumidifiers to eliminate moisture.

• Install a HEPA filter: A HEPA filter will greatly reduce the amount of mold in the air.

Reactions or allergies to mold may take some time to subside, but taking preventative measures as soon as possible is important. If you can clearly see mold growing in your home or smell it, hire a home inspector and/or air quality inspector to ease your concerns and provide professional information. Again, any mold removal should be conducted by a professional. Once mold has been removed and precautions are taken to keep it from recurring, mold should be permanently out of your way! 

SOME GREAT MOLD DETECTORS/MONITORS FOR PERSONAL USE:

My Mold Detective MMD103 Mold Test Kit, 3-Room Kit

PROS

• Air sampling pump is reusable

• 3-day turnaround for lab results

• Extensive report

CONS

• Lab testing fee is $39 per sample

• No consultation included (helpline provided, though)

DIY Mold Test Kit

PROS

• Lab fees are included

• Includes expert consultation

• Can sample multiple areas

• Customer service available

CONS

• Not suitable for air testing

• Must pay shipping for lab tests

Airthings House Kit, Radon & Indoor Air Quality Monitoring System, Multi-Room

PROS

• Provides alert for mold-conducive conditions

• Access air quality data in the app

• Also monitors temperature, radon levels, and more

CONS

• Doesn’t test for the presence of mold

• Pricier than other options

A vendor take-back mortgage can be a great opportunity for both the seller and the buyer. I will explain all the benefits for both buyers and seller, but would like to be clear with some risks as well!

Let me begin by describing what a VTB is all about!

 The vendor is the seller and these two terms are interchangeable. So vendor take-back and seller take-back mortgages are one and the same. In this situation, the seller of a home lends money to the buyer of the home and so extends a loan for a portion of the sales price. This means that the seller may take on the role of a lender and would also be able to offer certain options or incentives to the buyer. Since the seller owns the property, when the sale closes, money doesn’t change hands in the same way it does with a traditional mortgage. Once the buyer purchases the property, they make mortgage payments to the seller until the end of the term, the house is sold or the mortgage is paid off.

For the buyer, a VTB can mean access to financing in a situation where they have been turned away from A or even B lenders for several reasons. Traditional mortgages often require a stress test, specific down payment percentages and credit scores above a certain amount. Lacking in these prerequisites, buyers won’t qualify for conventional financing and therefore, VTBs can be a great option and relief on a house-hunting journey. There are many more negotiations that can be had compared to a traditional mortgage. Offering a VTB as a vendor also has advantages in specific markets, specifically a buyer’s market, where house prices are inflated (and it’s tougher for buyers to qualify) and there is more intense competition. It’s great for sellers too as it may mean closing a sale that might otherwise have not been possible. The interest portion of the loan can also generate additional income.

At this point, a VTB may sound quite appealing, but it’s important to keep in mind some key considerations. The buyer must still make monthly payments to the seller as their lender according to an agreed upon schedule and timeline. Buyers should also be aware of any additional closing costs, down payments and any other related transaction fees.

For the seller, the VTB is essentially a second mortgage and if the buyer defaults on payments, the onus is on the seller! Sellers will generally need legal documents prepared by a lawyer and these may be costly.

If you’re an investor, you could also benefit from a VTB arrangement. For vendors owning a property outright, a VTB can assist in deferring capital gains from the purchase price and enjoying some tax benefits. Naturally, the income generated from the monthly mortgage payments is also highly beneficial. For investors with poor credit, a VTB can act as a short-term financing solution!

Vendor-take-back mortgages have been gaining popularity these past few years, as the markets have been somewhat unusual and competitive! For some buyers it could really be their chance of getting into the housing market. Make sure to seek professional advice when considering a VTB mortgage and to work with a lawyer to review and understand the contract. Despite the legal fees, it’s critical to ensure that your interests are protected and the agreement is in line with your financial goals!

Welcome to my Real Estate Blog!

Here you will find interesting facts and guidance with regards to home and business ownership, great local businesses to check out and support, places to visit in Ontario, and even recipes!

In addition, you can find  timely updates of my latest properties, open houses, just solds and much more.

Whether you are interested in buying or selling real estate, I am here to help guide you every step of the way.

If you have any questions about real estate from home evaluations to mortgages to searching for properties in your area, I would love to hear from you! Contact me today!