A great information package on Buying or Selling Your Home in the Spring market.

1. Let’s get social
Keep your home dry
during the spring thaw
Buying a resale condo?
Here’s what you need
to know.
SPRING EDITION 2014

2. With that in mind, here are the most common buying and
selling pitfalls, and tips on how to avoid them:
HIRING THE FIRST SALESPERSON YOU MEET
While you may decide to work with the first real estate
professional you meet, it's a good idea to meet with a few
different representatives before settling on one. Make sure
you feel comfortable with them and their approach to the
process. Also, be sure to get references and contact them
to learn about their experience with the salesperson. Before
signing a representation agreement, it’s a good idea to use the
‘Registrant Search’ tool at the top of RECO’s website
(www.reco.on.ca) to check the status of their registration and
see whether they have been subject to disciplinary action.
NOT MAKING YOUR EXPECTATIONS CLEAR
WITH YOUR REAL ESTATE PROFESSIONAL
Working with a real estate professional is a partnership,
so communication is the key to success. It’s important to have
a mutual understanding about what you’re looking for in a
home, what elements you would consider to be ‘deal-breakers’,
and what services the brokerage will be responsible for. Make
sure you discuss what services you expect them to provide,
and get it in writing.
FAILING TO READ AND UNDERSTAND FORMS AND CONTRACTS
It can be tempting to speed the process along by signing
forms that you haven’t read. After all, nobody really likes
reading the fine print. But taking the time to understand
what you’re signing can avoid a lot of problems later on.
For example, you don’t want to find out that you’re on the
hook for a six month listing agreement to sell your home if
you only want your house on the market for three months.
Make sure all the blanks on the form are filled in before you
sign it, and make sure you get a copy of whatever you sign.
ALLOWING EMOTIONS TO OVERTAKE COMMON SENSE
When you fall in love with a property, it can be hard to
walk away. Stick to your budget and be aware of the risks
of foregoing a home inspection for a chance to win a bidding
war. Making your offer conditional on a home inspection
is a smart decision because a qualified home inspector,
engineer or contractor can identify underlying problems
with a home’s major systems, like heating and electrical.
Skipping an inspection is a gamble because you’ll leave
yourself vulnerable to a much more costly problem later on.
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It’s worth the effort to learn about the
home buying and selling process; doing
so could save you time, stress and money.
One way to protect yourself is to learn
from the mistakes of others.
“RECO is responsible for protecting
home buyers and sellers, and we’ve seen
too many Ontarians fall victim to easily
avoidable buying and selling hazards,”
says RECO’s Registrar Joseph Richer.
“Being mindful of these issues can help
the process go a lot smoother.”
MOST COMMON
BUYING AND SELLING
MISTAKES
WATCH
OUT
FOR THE
TOP
10
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3. ASSUMING EVERYTHING IS INCLUDED
Don’t assume that the stove, washing machine and dryer or
other items are included with the sale. The seller may want to
take the dishwasher with them, and the hot water tank might
be under a rental contract that you’ll be required to take over.
The best way to protect against any surprises is to detail all
the items (known as chattels) you expect to be included in
your written offer. In the offer, you can also include a clause
requiring the seller to pay out any outstanding leases on the
home’s major systems.
FORGETTING ABOUT WHAT’S WITHIN THE WALLS
The hardwood floors, stained glass windows and walk-in closet
are appealing features, but the insulation, wiring and plumbing
are just as important when you’re evaluating a property. Ask
your real estate professional to look into the age of the home’s
systems and if there have been any upgrades. If extensive
renovations have been done, your real estate professional can
also help determine if the appropriate permits were issued.
FORGETTING ABOUT WHAT’S OUTSIDE THE WALLS
When you buy a home, you’re also buying a place in a community.
Visit the neighbourhood at different times of the day to see if the
surroundings fit your lifestyle. Is it too noisy, or not vibrant enough?
The only way to find out is to spend some time exploring the area,
talking to neighbours and researching the locations of amenities
like grocery stores and banks.
NOT DOING YOUR RESEARCH
If you’re concerned about buying a home with a troubled past,
a simple Internet search for the address can go a long way.
This is also something you can ask the neighbours about.
MAKING VERBAL AGREEMENTS
Verbal agreements aren’t a problem, until they’re a problem.
Putting everything in writing forces both parties to be clear
about their expectations and provides a record that can prevent
disputes later on.
UNDERESTIMATING CLOSING COSTS
The price paid for a home is just one of many costs associated
with the purchase. Related costs, such as land transfer taxes,
title insurance and a home inspection, can really add up and
take an unexpected chunk out of your budget. There are also
the final touches – like a fresh coat of paint, some window
coverings or a new appliance – that you may want to do to
make the place feel like your home. For more information,
check out the Fall 2013 edition of RECOnnect, which includes
a feature on the full costs of buying a home. You can find it
under ‘Publications and Resources’ at www.reco.on.ca.
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10 While these tips will certainly help, the
most important advice is to work with
a registered real estate professional.
“Registered brokers and salespersons
provide a great deal of knowledge and
expertise about the buying and selling
process, along with specific knowledge
about neighbourhoods and local issues,”
says Richer. “They can also provide crucial
help in avoiding these hazards.”
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4. LET’S
GET
SOCIAL
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5. For more information and to
access the new digital tools,
please visit us at:
www.Facebook.com/recohelps
www.YouTube.com/recohelps
www.Twitter.com/recohelps
www.reco.on.ca
NEW DIGITAL TOOLS
to help you make smart home–
buying and selling decisions
Buying or selling a home is an important life milestone that
can be emotional, stressful and confusing. With so much at
stake, RECO has launched new digital tools that encourage
Ontarians to be home smart.
The resources offer credible and objective advice to help
Ontarians successfully navigate the home buying and selling
process.
Visit Facebook (www.Facebook.com/recohelps)
for interactive tools that highlight some of the most common
buying and selling mistakes. Participate in the Choose Your
Home Adventure game, which will take you through five
scenarios that most homebuyers encounter. By participating,
you’ll also have the chance to win a $100 RONA gift card.
Determine whether you make decisions with your head or your
heart by taking our Are you home smart or home emotional?
quiz. And remember to check back daily for real estate dos and
don’ts, infographics and buying and selling checklists.
Check out Youtube (www.YouTube.com/recohelps)
for a new video series that answers common home buyer and
seller questions, such as “what closing costs should I budget
for,”“what should I do to have a safe open house” and
“how do I know what’s included with the sale of a home.”
Follow Twitter (www.Twitter.com/recohelps)
for daily tidbits on home buying and selling.
Being informed, asking questions and not letting your
emotions take over will help you have a positive buying
or selling experience.
Also, a registered real estate professional is an important source
of information and an objective ally during the buying or selling
experience.
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6. KEEP THE WATER OUT
Before the snow begins melting, clear
away any snow and obstructions that
have accumulated around windows,
and clear debris from gutters and
downspouts. If there are any piles
of snow near the house, move them
further away. Make sure there’s
nothing outside that would block
proper drainage as the snow melts.
Proper grading around your home is
essential—the ground shouldn’t slope
toward your home.
MINIMIZE RISK
Even if water gets into your home,
there are steps you can take to
minimize the damage. Basements are
often used as storage, but it’s not a
good idea to keep highly valuable
or irreplaceable items down there.
Don’t take the risk, keep your
treasured possessions above ground.
Also, make sure any water that enters
your home can drain properly. Keep
the drains in your basement clear of
obstructions and consider installing
a sump pump. If you already have
one, make sure it’s in proper working
order. Also consider installing a sewer
backwater valve to prevent flooding
due to a sewer backup.
By following these simple tips, you
can reduce your risk of flooding and
enjoy the change of season.
The information in this article is
courtesy of the Insurance Bureau
of Canada (www.ibc.ca).
Keep your
home dry
during
the spring
thaw
Spring is here, bringing longer days
and warmer temperatures. That melt-
ing snow is a welcome sight, but it also
presents a flooding risk. Fortunately
there are things you can do to protect
yourself from springtime flooding.
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7. BUYING A RESALE CONDO?
HERE’S WHAT YOU NEED TO KNOW.
In many ways, buying a resale condo is similar to buying a
house, but there are additional caveats to a condo purchase that
buyers should be aware of.
Is condo living for you?
Before you go through with a condo purchase, consider whether
condo living fits with your lifestyle. Condos often have rules
regarding pets, noise and even drapes and balcony furniture.
As such, condo living requires more “give and take” than a
house. Take that into consideration before you go on the hunt
for a condo.
The status certificate
When you make an offer on a condo, it should be conditional
on a review of the status certificate. It’s a document that includes
a lot of critical information about the condo corporation.
• BY-LAWS AND RULES: make sure you can live with the
condo’s rules. If pets aren’t allowed, don’t try to sneak in your
puppy. Instead, find another property that is more suitable.
• FINANCIAL RECORDS FOR THE CONDO CORPORATION:
the certificate will include the corporation’s most recent
budget and the balance of the corporation’s reserve fund. If
costly repairs are required in the future, insufficient cash in the
reserve fund could require a steep increase in your condo fees
or result in a special assessment.
• UTILITIES: utilities could be included with your condo fees
or paid separately. Each unit could have its own hydro and
water meters, or there could be one set of meters for the
whole building, with everyone sharing the costs equally.
You’ll want to know so you can budget accordingly.
• RENTAL STATUS: when owners lease out their units, they are
required to notify the condo corporation. The corporation
keeps a tally and includes the figure as part of the status
certificate. If you want to rent your unit, it may make sense
to buy in a condo that contains many other tenants. On the
other hand, if you plan to live in your unit, a place where
most owners live in their condo may give you the kind of
community you desire.
• PARKING DETAILS: your unit may include a parking space,
but it’s important to understand whether you will own the
parking space yourself, or whether it’s a common element
owned by the condo corporation that you are assigned, but
that you don’t own.
Ultimately when you buy into a condo, you are also choosing
your community. It’s a big commitment, so take the time to find
a place that suits your personal needs. Don’t overlook potential
issues in the rush to purchase a property. For more information
about buying a condo, check out the Ministry of Consumer
Services’ Condo Guide.
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8. Do you have any comments or inquiries about the Reconnect newsletter?
Please send them to: communications@reco.on.ca
Real Estate Council Of Ontario
3300 Bloor Street West
Suite 1200, West Tower
Toronto, Ontario M8X 2X2
Tel: 416-207-4800
Toll-Free: 1-800-245-6910
Fax: 416-207-4820
@RECOhelps
RECOhelps
Disclaimer: While RECO makes every effort to ensure that the information in this publication is current and accurate, RECO does not
warrant or guarantee that it will be free of errors. The information contained in this publication is not intended to cover all situations. It
is general information only and users/readers are encouraged to seek their own independent advice for particular fact situations.
DID YOU KNOW?
There are new options for real
estate commissions
The Government of Ontario has changed
the rules to give consumers and real estate
brokerages more options and flexibility
regarding how fees and commissions for
real estate services are calculated.
Previously, real estate brokerages
could charge consumers a flat fee or a
percentage of the sale price, but not a
combination of the two. This restriction has
been removed, so brokerages now have
the option to make fee arrangements that
include a combination of a flat fee and a
percentage of the sale price.
“While choice and flexibility are good
for consumers, it remains crucial for home
buyers and sellers to educate themselves
and understand what services will be
provided to them and at what cost,” says
RECO Registrar Joseph Richer.
When choosing a real estate
professional, consider the services you are
looking for and the prices associated with
those services. Both prices and service
levels vary, and communicating clearly
ahead of time and getting everything in
writing can help avoid problems later on.
CONSUMER QA
I’m looking to buy a home.
How do I know what’s included?
When looking at a home, you can’t
assume that what you see is what you
get. Buyers can be in for a costly surprise
if they find out that the appliances, light
fixtures, water heater, alarm system or
other items they thought were part of the
home are actually not included. These
items are referred to as chattels.
Before putting in an offer on a home,
ask your registered real estate professional
to confirm, in writing, which chattels will be
included with the purchase. Additionally,
you’ll want to confirm whether there are
any rental or lease agreements in place
that you will be responsible for taking over.
By getting all the details in writing, you’ll
know that you’re making an informed
buying decision.
Message from
the Chair –
RECO Board
of Directors
By Glenda Brindle
If you’re looking to either buy or sell a home,
becoming an informed consumer before you
start can help the process go smoothly. With the right information, you’ll know
what questions to ask and what to expect of your real estate professional, you’ll
understand how the process works and you’ll be able anticipate potential issues
so you can work with your representative to address them.
With a vast amount of information just a few mouse clicks away, the challenge
isn’t finding information; it’s sorting through it all to find a trustworthy source.
As the real estate regulator in the province, the Real Estate Council of Ontario
(RECO) protects the public interest by enforcing the rules and regulations that
govern real estate professionals. We also provide consumers with objective
information about buying, selling and owning a home. In short, if you’re looking
to learn about the buying and selling process, you’ve come to the right place.
RECO is a respected authority and one-stop-shop for valuable consumer resources,
including this newsletter.
Published two times a year, Reconnect offers an easy-to-read way of accessing
a wide range of helpful information, tips and news for home buyers and sellers.
In this issue, you’ll find guidance on common home buying and selling drawbacks,
tips on how to prevent flooding in your home this spring and things to consider
when buying a condo. I hope you enjoy the read, find the contents useful and sign
up to receive future editions by email.
But don’t stop there; I also encourage you to visit our Facebook page
(www. facebook.com/RECOhelps) for daily tips and interactive resources,
watch our helpful videos on YouTube (www.youtube.com/RECOhelps), follow
us on Twitter (www.twitter.com/RECOhelps) and explore RECO’s website
(www.reco.on.ca), which has a section devoted to educating Ontarians about
the home buying and selling process.
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