honesty transparency knowledge
We believed that everyone who bought or sold a home should feel like all their questions were being answered.
At MaxWell our hope is that with an honest, transparent and knowledgeable approach we can further gain your trust.
It's your home and it's the very least you deserve.
There are many things that need to be taken into account when looking at real estate fees, including the fact that there are two real estate agents that need to be paid: the buyer’s agent and the seller’s agent. Factor in the time spent on market evaluations, taking measurements, photos, and staging the home. There’s also marketing involved with the selling of the home, like listing it on the MLS System, ads in the newspaper, flyer delivery, and lawn signs. Remember, you are hiring a professional who is highly knowledgeable in the process of buying and selling real estate. Your REALTOR® is representing you and will always have your best interests in mind when it comes time to negotiate the sale of your home.
So I signed the documents but do I need to initial everything?
A real estate contract is a binding agreement, and, therefore, all parties must completely read and understand its contents. By initialling all the specific paragraphs and sections located in the contract, all parties are confirming that they understand and are agreeing to the terms and conditions in the contract.
What is a possesion date?
A possession date is the day the buyer takes possession of the home they have purchased. This is when all documents are finalized, and the buyer receives the keys to the home.
APPRAISAL
An estimate of a property's market value, used by lenders in determining the amount of the mortgage.
Do
I really
need a
home
inspection?
It’s not a requirement, but it is always advisable to hire a professional to do a home inspection. A professional home inspector knows what to look for and can point out any issues that you may not be aware of or even have considered. A home inspection may help prevent paying for unexpected and costly repairs that may arise after you’ve moved into your new home.
Can you help us get the best mortgage?
Real Estate agents are consistently in contact with mortgage brokers and financial representatives, and have built building a respectful relationship with these mortgage professionals. We can refer you to a mortgage broker who is well-versed in mortgages, and who can find the best mortgage product and interest rate for you.
Common area assessment?
These are fees paid to the Homeowner’s Association for the maintenance of common areas. These fees are typically found in condominium type housing. Common areas include: pools, interior corridors, tennis courts, and parking spaces.
Can I leave
the washer and dryer?
Washer, dryers, and any other appliances can be included in the contract as part of the sale of the house. Keep in mind that the buyer may not want these items, and can request that the contract exclude them. If the buyer does not want the appliances, the seller must make other arrangements to have them removed.
How
many extra
cash
outlays are there?
Cash outlays are the number of expenses that need to be paid when purchasing a home. In any real estate transaction, expect that a deposit must be put down to show intention to purchase the home. The financial institution will also require a down payment toward the mortgage, usually of 20% of the purchase price of the home. There are also lawyer’s fees and transfer of land title fees. The real estate agent’s fees are based on the purchase price of the home using a specific calculation, and are paid after the closing date.
Eminent domain
Eminent domain means the government has the power to obtain a property and use it for the public domain, like schools, roads, etc. In Canada, this is called expropriation. If the government does seize the land, the fair market value must be paid to the owner.
That
rusted out
fridge
in the yard
is my
responsibility?
A rusted fridge or any other type of garbage, old appliances, or anything that does not belong to you, and was not included in the contract, is the responsibility of the previous owner. If you find that there is an issue, contact your real estate agent. He or she will contact the seller’s agent to have the matter addressed.
Why do
I need a
deposit?
A deposit demonstrates to the seller that you are serious about purchasing their house. The amount of the deposit will go toward the purchase price of the home when all documents are finalized. Typically, a portion of the deposit will be required at signing of the contract, with the final portion being due when the conditions have been lifted. However, if the conditions ‘fall through’, your deposit is returned to you.
What is
buyers
remorse?
Buyer’s remorse happens shortly after someone makes a large purchase, usually of a house or a car, and regrets having done so. Typical signs of buyer’s remorse are questioning your decision after the fact, and wondering why you didn’t take more time to think about the purchase.
Search GLOSSARY OF TERMS
  • AMORTIZATION
    The number of years it takes to repay the entire amount of a mortgage.
  • APPRAISAL
    An estimate of a property's market value, used by lenders in determining the amount of the mortgage.
  • APPRECIATION
    The increase of a property's value over time.
  • ASSESSMENT
    The value of a property, set by the local municipality, for the purposes of calculating property tax.
  • ASSUMABLE MORTGAGE
    A mortgage held on a property by the seller that can be taken over by the buyer, who then accepts responsibility for making the mortgage payments.
  • BLENDED MORTGAGE
    A combination of two mortgages, one with a higher interest rate than the other, to create a new mortgage with an interest rate somewhere between the two original rates.
  • BLENDED MORTGAGE PAYMENTS
    Equal or regular mortgage payments, consisting of both a principal and an interest component. With each successive payment, the amount applied to interest decreases and the amount applied to the principal increases, although the total payment doesn't change. (Exception: see Variable-Rate Mortgages)
  • BUY-DOWN
    When the seller reduces the interest rate on a mortgage by paying the difference between the reduced rate and market rate directly to the lender, or to the purchaser, in one lump sum or monthly installments.
  • Can I leave my washer and dryer?
    Whenever it comes to personal household items, the discretion and decision is your to make. If it adds value to your current property or you will not need it at your next home, the decision lies with you.
  • CLOSED MORTGAGE
    A mortgage that cannot be prepaid, renegotiated or refinanced during its term.
  • CLOSING
    The real estate transaction's completion, when the parties involved agree that all legal and financial obligations have been met, and the deed to the property is transferred from the seller to the buyer.
  • CLOSING COSTS
    Expenses in addition to the purchase price for buying and selling a property.
  • CLOSING DATE
    The date on which the title and keys to the property are transferred from the seller to the buyer, and the money is paid.
  • COMMON ELEMENTS
    The portions of a condominium development owned in common (shared) by the unit owners.
  • CONDOMINIUM
    Shared ownership in property. Owners have title (ownership) to individual units and a proportionate share in the common elements.
  • CONVENTIONAL MORTGAGE
    A first mortgage issued for up to 75% of the property's appraised value or purchase price, whichever is lower.
  • COUNTEROFFER
    One party's written response to the other party's offer during negotiation of a real estate purchase between buyer and seller.
  • DEBT SERVICE RATIO
    The percentage of a borrower's gross income that can be used for housing costs, including mortgage payment and taxes. (and condominium fees, when applicable)
  • Do I need a home inspection?
    A home inspection is an option but is recommended to reduce the risk to the buyer and creating awareness of the condition of the home, especially the things that cannot be seen with a naked eye.
  • DOWN PAYMENT
    The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.
  • EASEMENT
    A legal right to use or cross (right-of-way) another person's land for limited purposes. A common example is a utility company's right to run wires or lay pipe across a property.
  • ENCROACHMENT
    An intrusion onto an adjoining property. A neighbour's fence, storage shed, or overhanging roof line that partially (or even fully) intrude onto your property are examples of encroachments.
  • EQUITY
    A homeowner's financial interest in a property. The difference between the value of the property and the amount owing (if any) on the mortgage.
  • ESTOPPEL CERTIFICATE
    A written statement of a condominium unit's current financial and legal status.
  • FIRST MORTGAGE
    The first security registered on a property. Additional mortgages secured against the property are "secondary" to the first mortgage.
  • FORECLOSURE
    A legal process by which the lender takes possession and ownership of a property when the borrower doesn't meet ("defaults on") the mortgage obligations.
  • HIGH-RATIO MORTGAGE
    A mortgage for more than 75% of a property's appraised value or purchase price.
  • How can you help us get the best mortgage?
    As a realtor I can recommend a variety of Mortgage Representatives but ultimately a buyer must make the final decision as to where they will acquire their mortgage from based on the best terms that meet their individual needs
  • How many cash outlays are there?
    Each contract varies to the next as far a cash outlays are set. One can anticipate somewhere between 5-10,000 dollars or higher depending on the purchase price of the property. This is something that can be discussed once the REALTOR® knows the pre-approved amount for buying.
  • INTEREST
    The cost of borrowing money.
  • Is the rusted fridge in the yard my responsibility?
    Any items that are not wanted by a purchaser that they see should be written into the purchase contract. If there is an item, such as, a rusted refrigerator, in the yard that the buyer does not want it should be specified in the terms of the contract that it must be removed prior to possession date. In addition, there should be a consequence (hold-back) in the contract to ensure it is removed prior to possession date or the hold-back goes to the purchaser.
  • JOINT TENANCY
    A form of ownership in which two or more individuals (often spouses) have an equal share in the ownership of a property. In the event of one owner's death, his or her share is automatically transferred to the surviving owner(s), apart from the deceased's will.
  • LEVERAGE
    Controlling a large asset with a relatively small amount of cash. In real estate, $25,000 down payment (or less) can be used to purchase (control) a $100,000 home, for example.
  • LIEN
    Any legal claim against a property, filed to ensure payment of a debt.
  • LISTING AGREEMENT
    The contract between the listing broker and an owner, authorizing the REALTOR® to facilitate the sale or lease of a property.
  • LISTING BROKER
    The REALTOR® who signs a contract with an owner to sell the property.
  • MAINTENANCE FEE
    A monthly fee paid by condominium owners for maintaining the development's common areas.
  • MORTGAGE
    A contract between a borrower and a lender. The borrower pledges a property as security to guarantee repayment of the mortgage debt.
  • MORTGAGE BROKER
    A licensed individual who, for a fee, brings together a borrower in search of a mortgage and a lender willing to issue that mortgage.
  • MORTGAGE INSURANCE
    Government-backed or privately-backed insurance protecting the lender against the borrower's default on high-ratio (and other types of) mortgages.
  • MORTGAGE LIFE INSURANCE
    Insurance that pays off the mortgage debt, should the insured borrower die.
  • MORTGAGE PAYMENT
    The regular installments made towards paying back the principal and interest on a mortgage.
  • MORTGAGE TERM
    The length of time a lender will loan mortgage funds to a borrower. Most mortgage terms run from six months to five years, after which the borrower can either repay the balance (remaining principal) of the mortgage, or renegotiate the mortgage for another term.
  • MORTGAGEE
    The lender.
  • MORTGAGOR
    The borrower.
  • MULTIPLE LISTING SERVICE® (MLS®) System
    A system for relaying information to REALTOR® about properties for sale.
  • OPEN MORTGAGE
    A mortgage that can be prepaid or renegotiated at any time and in any amount without penalty.
  • PARTIALLY OPEN MORTGAGE
    (Also called a "partially closed" mortgage.) Allows the borrower to prepay a specific portion of the mortgage principal at certain times with or without penalty.
  • PORTABILITY
    A mortgage feature that allows borrowers to take their mortgage with them without penalty, when they sell their present home and buy another one.
  • PREPAYMENT PRIVILEGE
    A mortgage feature that allows the borrower to prepay a portion or all of the principal balance with or without penalty. This privilege is frequently restricted to specific amounts and times.
  • PRINCIPAL
    The mortgage amount initially borrowed, or the portion still owing on the mortgage. Interest is calculated on the principal amount.
  • RATE (Interest)
    The return the lender receives for advancing the mortgage funds required by the borrower to purchase a property.
  • REALTOR®
    Real Estate Professionals who are members of a local real estate board and the Canadian Real Estate Association. Only these professionals can call themselves REALTOR®.
  • REFINANCING
    The process of obtaining a new mortgage, usually at a lower interest rate, to replace the existing mortgage.
  • RESERVE FUND
    The portion of a condominium maintenance fee that is set aside to cover major repair and replacement costs.
  • SECOND MORTGAGE
    A second financing arrangement, in addition to the first mortgage, also secured by the property. Second mortgages are usually issued at a higher interest rate and for a shorter term than the first mortgage.
  • SECONDARY FINANCING
    Second, third, fourth, etc. mortgages, secured by a property "behind" the first mortgage.
  • So I signed the documents but do I need to initial EVERYTHING?
    Every change you make on a contract needs to be initialed in order to protect the interest and intent of the contract as it is a legal binding document.
  • TAKE-BACK MORTGAGE
    See Vendor-Take-Back Mortgage
  • TERM
    See Mortgage Term
  • TITLE
    The legal evidence of ownership of a property.
  • TITLE SEARCH
    A detailed examination of the ownership documents to ensure there are no liens or other encumbrances on the property, and no questions regarding the seller's ownership claim.
  • UNIT
    Term used to describe the individual home or apartment held by the owner within a condominium development.
  • VARIABLE-RATE MORTGAGE
    A mortgage for which payments are fixed, but whose interest rate changes in relationship to fluctuating market interest rates. If market rates go up, a larger portion of the payment goes to interest. If rates go down, a large portion of the payment is applied to the principal.
  • VENDOR-TAKE-BACK MORTGAGE
    When sellers use their equity in a property to provide some or all of the mortgage financing in order to sell the property.
  • WEEKLY PAYMENTS
    Mortgage payments made weekly or 52 times per year.
  • What are support documents?
    Support documents can be a number of things to reports, changes to the contract with respect to a home inspection, a change of possession. They must always be in writing.
  • What is a common area assessment?
    A levy against individual unit owners in a condominium or planned unit development to pay for upkeep, repairs and improvements to the property's common areas, such as corridors, elevators, parking lots, swimming pools and tennis courts.
  • What is a possession date?
    Possession date is the day you will take ownership of your purchase. This happens around noon as this is when insurance kicks in.
  • What is buyer's remorse?
    Buyer’s remorse is having regret on purchasing something. If a buyer is having second thoughts, they better decide prior to removing the last condition on the contract.
  • What is eminent domain?
    The power to seize private property without the owner’s consent.
  • Why do I need a deposit?
    A deposit is given to the seller to show good faith on moving forward with the transaction. The deposit is cashed and held in trust during the time period where conditions are required and time dates put in place to finish meeting those conditions.
  • Why do Real Estate Fees seem so high?
    One would assume the fees are high. As in any industry there is a fee for service. As a REALTOR® the industry set up this contingency and we don't have the option to charge by the hour only a set fee prior to being hired. As we are unaware of the length of time it will take to complete the process this set amount is usually paid by the seller funded through your deposit.
  • Why should I have an open house?
    An open house is a personal choice and the seller needs to decide if the added exposure can bring a potential buyer or if nosy neighbors and unqualified buyers will be an inconvenience to the homeowner. An open house can bring a buyer, however some sellers are not comfortable allowing strangers through their property.
  • ZONING REGULATIONS
    Strict guidelines set and enforced by municipal governments regulating how a property may or may not be used.