Buyer Resources
Frequently Asked Questions
Q: Why should I use a REALTOR®?
A: A REALTOR® can help you in many ways, to not only get a better price for your home, but also make the whole process easier. Read more in the "Why Use A REALTOR®" section.
Q: How do I find a REALTOR®?
A: Use the search engine on our website in the “Find a REALTOR®” section.
Q: Why do I need to show ID to my REALTOR®?
NEW FEDERAL LAW AS OF JUNE 23, 2008
A: The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is requiring the real estate industry to “ID” clients.
This government body, FINTRAC, was created as part of an initiative to fight money laundering and terrorist financing, both domestically and internationally.
Businesses and industries (of which organized real estate is one) must report to FINTRAC, and are required to know their clients and asking for ID is one way to do that.
The business you are dealing with is required by law to ask you for ID. By providing this information when requested, you will ensure that our industry members can meet their legal obligation, and support the fight against money laundering and terrorist financing.
ID means that you are required to provide valid identification such as a birth certificate, a drivers license, or similar type of document.
There are other requirements that might prompt the business you are dealing with to ask you for more information about the transaction you are conducting. For instance, you may be asked whether you are acting on behalf of a third party while conducting your transaction.
Q: How is my privacy protected when I work with a REALTOR®?
A: As per Rule 44 (1) of the Real Estate Act, an industry member must not disclose information regarding a client, property or transaction to another person unless:
Authorized by the client, or Required by law.
Rule 44(2) also requires brokerages to establish policies and procedures to protect confidential information and to ensure that all staff comply.
All brokerages must appoint a privacy officer, as per PIPA.
Q: What costs are associated with buying a house?
A: Click here for a list of potential costs (82KB PDF)
Click here for a check list of potential costs. (40KB PDF)
Q: How do I use my RRSP for a down payment?
A: The RRSP Home Buyers Plan allows first time buyers to withdraw up to $20,000 maximum per person on a tax free basis from their RRSP. Taxpayers may contribute to their own or their spouses RRSP, wait 90 days, withdraw the funds and make a considerable tax savings, which they can use as a down payment.
Q: When does that need to be repaid?
A: Equal annual payments/installments need to be made over 15 years. First payment is due 60 days after the end of the second full calendar year following the year the deduction was made. ie. 1997 withdrawal ----> 1st payment Feb 29, 2000. No interest is payable. Funds may be repaid more quickly if desired. Revenue Canada sends payment amount verification to the client every year to inform them how much their payment must be. If 1/15 is not repaid in any year, the unpaid portion is added to income and taxed at their marginal tax-rate.
Q: Should I purchase title insurance?
A: When you buy a home, you want to be certain it's safely yours. But even the most diligent search of the public records could fail to disclose a number of title defects. These defects could include such things as forged wills or deeds, or a title transfer by someone under age, or a married person conveying real estate without his or her spouse. Other possibilities include fraudulent impersonations, secret marriages, undisclosed heirs, invalid divorces and false affidavits. These are just a few of the problems that can suddenly surface. Without the protection of title insurance, you'll be in jeopardy of losing your investment.
You can safeguard your investment against these and other "horrors" with an owner's title insurance policy. First, a service known as a title search describes, as well as possible, the condition and quality of the title to the land you are buying. Then, your title insurance protects you against mistakes or threats that might otherwise result in financial loss to you--including those hidden, unknown items. Your title insurance protection is a permanent assurance that your ownership and use will be defended promptly against claims at no cost to you, whether the claim is valid or not.
Q: Do I have to use a lawyer?
A: It is highly recommended. If you are getting a mortgage, your lender will probably require that a lawyer handle the transaction.
Q: What other professionals might I need to hire or consult before buying a home?
A: Click here (95KB PDF) to see a list of professionals you might want to consider working with.
Q: Who holds the deposit when I make an offer to purchase?
A: It is negotiable between you and the seller. Usually the seller’s brokerage holds the deposit “in trust” for you and the seller.
Q: What is the difference between chattels and fixtures?
A: Chattels are unattached goods that go with the seller. Fixtures are attached goods that stay with the property. Any chattels you want included must be written into the purchase contract and agreed to by the seller.
Q: Can I withdraw my offer before it is accepted?
A: In most cases, yes. But check with your REALTOR® or lawyer regarding the specifics of your offer.
Q: Can I withdraw my offer after it is accepted?
A: In most cases, no. Again, check with your REALTOR® or lawyer regarding the specifics of your offer.
