WHAT ARE CLOSING COSTS?
The closing costs are very different in Alberta
“What are the Closing Costs?”
Property Inspection – In most cases this is optional as its for your benefit to reduce the risk of finding any costly defects Condo Document Review – If you are purchasing a condo you may want a professional to review these documents to raise awareness of any special assessments
Title Insurance – This is optional in Alberta but recommended
Fire Insurance – You must have fire insurance before the mortagage will be executed
Appraisal Fee – Most lenders will waive the appraisal fee but not all of them
Legal Fees and Disbursements – The Legal Fees are the time it takes your lawyer to perform the work, the disbursements are the extra costs the lawyer pays for you that need re-imbursement
- Transfer of Title
- Register your Mortgage on Title
- Execute the Mortgage
- Conduct a tax search
- Review all Non Financial Encumbrances
- Review the Real Property ReportMaking an offer
What does the seller like most about the property?
In a few cases, what a seller likes the most about a home might actually be something the buyer is looking to avoid. For example, if the seller describes his house as being in a "happening community," the buyer might consider this a negative factor because the area may be too noisy or busy for his or her taste.
Can I take possession quickly or several months from now?
We usually need a minimum 2 weeks from removal of conditions to close the transaction without extra penalties.
Lengthy possession dates can be negotiated but the seller usually wants a larger deposit than normal to mitigate the risk. Typical closing dates are 30 to 60 days.
What about Conditions & Terms?
Conditions will cancel the contract if they are not waived.
Terms are additional agreements that do not cancel the contract.
What conditions can I place on the Contract?
Buyers and Sellers can ask for any condition they feel is needed, but both the buyer and the seller are not obligated to accept.
We will guide you and recommend what condition(s) should be put on the contract based on the type of property and potential due diligence concerns that need addressing.
Typical conditions in residential Real Estate are as follows:
- Home inspection
- Review of Condo Documents if applicable
- Subject to probate
There are several people and personality types to consider, so emotions can be high for all parties. Negotiations can be fast or slow and involve 3 considerations:
- Process – Speed of decision making (slower/faster).
- Behavior - Relationship among the parties including cultural differences.
- Substance - Each party’s motivation & financial position.
Even though all decisions are yours to make its our job as professionals to provide advice along each step.