5 things to do before buying a house
COLLABORATION - You really like a house that you toured recently. So much so, that you want to make a purchase offer! It’s not every day that you become a home owner. With information taken from La Capitale’s blog, you can be sure you start off on a good footing.
1. Consider getting Legal Access insurance
Do you already hold home, auto or leisure vehicle insurance? It can be very useful if you add Legal Access insurance to your existing coverage before making a purchase offer. In the event of legal issues or unforeseen events, you would be able to consult the lawyer or notary of your choice, without having to pay all the fees.
2. Contact your home insurer
When preparing to make a purchase offer, check two important points with your insurer:
- Are any risks associated with the property that might cause it to be more difficult to insure (flood-risk area, something not up to code…)?
- How much should you expect to pay for home insurance?
This information may prove invaluable in helping you make an informed decision!
3. Get a home inspection: You need to know it inside out
Keep in mind:
- Home inspectors are responsible for detecting visible signs of problems. With their expertise, they should, of course, be able to detect such signs more easily than an ordinary person!
- If you have found a house you are interested in buying, check it out for traces of defects or problems.
Take your time, and look everywhere. You don’t want any nasty surprises later on!
4. Think of the documents required before and during the transaction:
Purchase offer form
Often, the buyer and seller fill out this form together, and may be assisted at times by a real estate broker. This important document confirms the parties’ intention.
When filling out the form, check to see if the sale price indicated is the negotiated price. Make sure it includes the conditions of your offer: financing, inspection, sale of your current residence… Just remember that you have to meet the deadlines associated with these conditions to avoid losing rights.
Useful tip: Contrary to the myth, you do not have 10 days to cancel a purchase offer. Cancellation is only possible in the case of a preliminary contract for the construction of a house or condominium.
Declaration of the seller
Quickly obtain this document, which contains the ownership history. You must have this form in your possession before signing a purchase offer.
Certificate of location
The seller is required to give you an accurate certificate. Examine it closely, and inform your notary if you notice any differences between the document you have received and the actual situation of the building and the land.
Proof of financing
If your offer is conditional on financing, proof of financing is required to complete your transaction. Your financial institution produces this document and gives it to you after carrying out the routine checks.
5. Contact a notary
Once the purchase offer conditions have been met, hire a notary to protect your interests as a buyer. You are responsible for the notary’s fees.
- Check the ownership titles to ensure that they are in order. If the title examination reveals an irregularity (such as encroachment on a neighbouring lot), the notary may suggest title insurance to cover the expenses required to resolve the situation.
- Prepare the transfer of titles. To do so, your notary will need the purchase offer, proof of financing and the certificate of location.
Are you still sure you want to buy the same house? Consult a specialized professional (notary, lawyer…) if you have any questions, and enjoy each step of the process!
Take advantage of the partnership with La Capitale!
If you're a DuProprio buyer or seller, ask La Capitale General Insurance for a home, auto or leisure vehicle insurance quote to take advantage of the benefits of our partnership!