Real Estate In British Columbia
Purchasing Real Estate
First time Home Buyers
Common Real Estate Definitions
BC Residential Tenancy Information
Purchasing Real Estate
Once an offer has been accepted and the subject to's have been removed the next step to complete the transaction is the conveyance of the property. To begin this process, we recommend informing your Real Estate agent and your Mortgage Broker or Bank where you will be completing this part of the transaction. We also recommend contacting our office as soon as possible to provide us with the following information;
The full legal names, occupations and contact information, including phone and e-mail, of all the buyers.
If there is more than one purchaser, would you like to be registered as Joint Tenants or Tenants in Common.
Is this home a new or used home?
Is the home currently tenanted? If yes, will they continue to rent from you?
Name and Contact information of the strata property manager or management company if the property is a Strata.
Are you or any of the purchasers involved in the purchase First Time Home Buyers*? If yes, we will need the following information:
* For more information on eligibility for the First time home buyers exemption program please visit our First Time Home Buyers eligibilty page.
In addition we will also need the contact information for the following;
- Your lender and mortgage broker, if one is involved
- Your Insurance Company, including branch location, broker name, and phone number *
- Your Realtor
*Almost all purchases require fire and earthquake insurance to be set up prior to completion date. For more information, please feel free to contact our office.
Completion Date (Closing date): At its simplest, the completion date in a real estate contract is the date the property is transferred, and the day the money for the purchase is transferred from the buyer to the seller.
Quick Tip for a Successful Completion date: Ensure that your completion date does not land on a holiday or weekend.
Adjustment Date: The adjustment date in a real estate contract is the date that the financial adjustments are calculated for; these items could include property taxes, water accounts, rents, damage deposits, etc...
Quick tip for your Adjustment & Possession dates: Generally the adjustment date and the possession date are the same day - This is because the same day that the buyer takes possession is the same day they would expect to be charged for services and costs related to owning the property.
Possession Date: The possession date in a real estate contract is the date the Buyer has the right to take possession of the property.
Quick tip for choosing your Adjustment & Possession dates: When deciding what Completion, Possession & Adjustment date to put into a contract, note that it not a legal requirement for the completion date be one day or more before the possession date. Although this recommendation may be made by your Realtor to avoid a situation where the circumstances may cause a delay in the completion of the purchase, and the buyer has no place to move into, it is only a recommendation and not a legal requirement. The Buyer and the Seller can instruct their respective Realtor to have the purchase contract written with both completion and possession on the same day. And remember, all dates in a Real Estate Contract are a matter of negotiation.
Completion Date and The Buyers Mortgage: Unlike rent which you pay in advance, interest on a Mortgage is paid in arrears. When you pay rent on the first of the month, you are paying in advance for the balance of that month. With a Mortgage, you do not pay interest when the mortgage starts; your first payment always occurs after. In other words, you have to have used the money first before you can be charged for it. Interest begins to be charged when the Mortgage is advanced on the completion date.
Joint Tenants: A type of ownership in which two or more owners share equal ownership of the property accompanied with a right of survivorship. A Right of Survivorship provides that if one of the owners dies, then their share shall pass to the remaining owners, and ownership will not be transmitted through a Will or, if one does not exist or is deemed invalid by the courts, through Intestacy Distribution in accordance with the Estate Administration Act.
Tenants in Common: A type of ownership in which two or more owners share ownership, which may or may not be equal. There is no right of survivorship accompanied with this form of ownership, and therefore, if an owner dies their share of the property will be distributed in accordance with thier Will or, if one does not exist or is deemed invalid by the courts, through intestacy distribution in accordance with the Estate Administration Act.