How much does a Real Estate agent cost me?

Nothing, as a buyer, you are not responsible for paying your agent. Any compensation your agent receives will come from the seller of the property.


What items/terms can be negotiated?

People often say “in Real Estate, you can ask for anything” There is some truth to that statement but be prepared for some resistance from the selling side if you are asking for personal items in the seller’s home. Here is a sort list of some of the most common items negotiated upon:


-Purchase Price

-Completion/Possession Dates

-Included items (ie. Furniture, lighting, art work, etc)

-Professional cleaning before possession

-Repair or replacement of defective items.


Is the deposit payable to the seller?

No, the deposit due at subject removal (typically 5%) is paid in a trust account of your agent’s brokerage. The brokerage will send this deposit to your lawyer or notary’s office on the completion day and these funds will be put towards your purchase.


Why does the lawyer/ notary collect the down payment?

Your lawyer or notary is responsible for facilitating the transaction. Their office will collect the total down payment, as well as any mortgage funds from the lender and send the combined total amount to the seller’s lawyer or notary. If you are getting a mortgage, the lender and your lawyer and notary will work together to ensure all the lenders required documentation is signed upon completion.


Deposit vs. Down payment?

If you are making your purchase using a mortgage, your down payment amount will be agreed upon with the lender, most commonly a percentage of the purchase price. The deposit is paid at the time of subject removal (when your offer becomes binding and unconditional). Upon completion you must pay the down payment, at this time the deposit paid at subject removal will be applied towards your down payment.


What if the home inspection fails and I want to back-out?

An offer is often subject to a number of conditions being met to the buyer’s satisfaction. If for example you offer a subject to the buyer, being satisfied with the results of a property inspection, and you the buyer, after completing the inspection are not satisfied and do not wish to purchase the home, you may do so by not removing the applicable subject. 


Why is possession typically 1 day after completion?

Possession is the day you get the keys to your new home and is commonly 1 day after the completion date. This is common practice to allow the seller to receive the finds and title registration to complete. The lawyer or notary will have to consolidate all the funds on the completion date and send them to the seller’s lawyers or notary before changing ownership of the property.


When do I need CMHC Mortgage Loan Insurance?

If you are applying for a mortgage and are planning on placing a down payment of less than 20% of the purchase price for personal residence or less than 35% for an investment purchase, your mortgage will require Mortgage Loan Insurance from CHMC (Canada Mortgage and Housing Corporation).


When do I have to pay GST on my purchase?

GST of 5% is payable only on new home purchases in B.C including any purchases made pre-sale. IF you are going to live in the home as your primary residence and the purchase price is under 450,000 you may apply for a rebate which could reduce the gst payable by up to 1.5%.