httpvh://www.youtube.com/watch?v=s2hQRC7xz8g

A lot of Ontario residents think that new 13 % HST will apply to the purchase price of re-sale homes. As a matter of fact as per OREA (Ontario Real Estate Association) Survey 56% people mistakenly believe that way. Yes it is a mistaken belief. In reality, HST (Harmonized Sales Tax) does not apply to the purchase price of a re-sale home. It applies to various transaction fees when a pre-owned home is purchased. For example it applies to,
• Legal Fees
• Home Inspection
• Real Estate Commissions
• Moving Costs
• Appraisal Fees
• Renovations etc.

To understand better let us take an example of a re-sale home which has purchase price of $350,000. Now, according to what most people think if it was applied to purchase price the tax would have been $45,500. Wow – Thanks God it is not applied to purchase price. According to rough estimate the average buyer will pay anywhere $1000 to $1500 more in transaction costs because of HST.

New homes purchased from builder which use to have GST on it now will have HST. But government offers up to $24000 of rebate regardless of price. Which means if you are buying a new house of $400,000 or less, you will get up to 75 % rebate making it same as before or possibly even less than what it use to be prior to July 1st 2010.

Hope fully these information help clearing out confusion about HST. People who are holding themselves from buying their dream home or still have questions do not hesitate to contact me I will help you out with all your questions so you can make informed wise decision.

You can:

• Use all the available common elements as per condo bylaws.
• vote at general meetings and elect board of director members
• review corporation records (e.g., financial statements, meetings, expenses etc)
• request a meeting of owners and point out matters to a general meeting agenda
• get a court order to force the corporation carry out a duty required under the Condominium Act.
• Start a compaigne to remove a director from the board with a majority of votes.

 You must:

• pay your monthly maintenance fees/ special assessments etc.
• maintain and repair as needed your unit from inside.
• follow the condo’s Declaration, By Laws and Rules
• Resolve issues through discussion, mediation, arbitration and/or court order.
• abide by the provisions of the Condominium Act

A lot of buyers looking on home for sale in Toronto, Mississauga, Brampton, Milton and other suburbs of Toronto tend to skip home inspection just trying to save few hundred dollars in home inspector fees. Very bad decision, absolutely not recommended. Even on new homes some times there can be defects hidden which can not be seen by your eyes or even by your real estate agent. A real estate agent works with home for sale in greater toronto area and is trained to help you find, negotiate and follow through the process. They are not trained to find hidden deffects in the property.

A home inspector will go through in detail the home for sale you are considerion to buy, prepare a complete report of his findings and give it you so you can make a wise decision. Deffects found by home inspector does not mean that you have to walk away and do not buy. Instead it gives you option to re-negotiate or buy it as is and know it exactly what you will need to fix on urgent bases.

If you do not know how to find a good home inspector, your real estate agent can help you find one. Ask him to give you at least three names of home inspector. You should call them your self and make a decision who you are going to use.

Buying a Real Estate in Ontario is one of the major decisions in your life. And this decision should be made by design not by default.  The process should be fully planned and team of experienced professionals should be selected to help you through the process.  

To help you carefully select the team of professionals you need let us find out who are the members of this team.

Experienced professionals you will need are – Realtor, Lender, Lawyer, Home Inspector and Insurance agent. Let us have a detailed look at them.

Realtor:

Realtor is Professional who will help you find your dream home or will market your current house and find a buyer for it. Not only that some times if you desire or request he will connect you with rest of the professionals as an added service. All Realtors go through intensive courses of study and build skill and knowledge before they are licensed.

A Realtor in Ontario is member of Local Real Estate Board, Canadian Real Estate Association and Ontario Real Estate Association. He/She must adhere to provincial Real Estate Law and abide by Code of Ethics ensuring you with highest possible service, honesty and integrity.

Lender:

Nowadays there are not many people who will buy home for cash. People save money over time for a down payment so that the balance can be borrowed from a bank or mortgage company. Before you start looking for lender you should always talk to your realtor for the options available today to help you get the best possible rate and terms.

Few people buy a home for cash. Most home buyers usually combine savings with money borrowed through a financial arrangement called a mortgage. Before looking for a lender, ask your REALTOR^® to explain the many mortgage options available today.

You should always begin search for lender and find out what amount you are qualified for borrowing before you start looking for homes. This will avoid major frustrations later on. Discuss with your realtor.

 Lawyer:

In Ontario for buying or selling real estate you will need a lawyer to represent your interest in the transaction and complete it on closing date as set forth in Agreement of purchase and sale. To avoid delays and hassle it is good Idea to have one on stand buy from the start.  

When you do find the home of your dreams and your realtor has helped you to reach a deal with sellers. Your realtor will forward all necessary documents including Agreement of Purchase and sale to your lawyer, who will ensure that you receive a valid and clear title to your new home.  Bank will send all the borrowed money directly to the lawyer, who then will forward all payments to seller’s lawyer. He or she will also calculate any taxes and make any required adjustments.

Home Inspector:

A good home inspector will cost any where from 300 to 500 or even more. But it is worth it to find out if there are any structural defects, or any other kind of hidden problems. This will help you decide whether to buy the property at all, or negotiate a lower price to compensate for anticipated major repairs.

Insurance Agent:

An insurance agent is also very important part of your professional team. All creditors and mortgage lenders need insurance on your new home before transaction is closed and you are given the possession. Your realtor can always connect you with few agents so you can shop the better rate.

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To understand the difference between type of ownership and type of property let us first look at 3 main types of ownership in Ontario.

• Freehold. This is the type to which most people will refer when they are thinking of buy a house (not an apartment). When you buy a freehold you acquire interest in land and property which is on that land and enjoy full rights of use, hold and sell, subject to restrictions from local bylaws and final interest of Crown and or there may be any other restrictions placed when it was purchased. You as a owner do not pay any maintenance fee, but you are responsible for all repairs, maintenance, improvements etc. It is your house. This can be sometimes costly.
• Co-operatives is the type of ownership where a corporation owns the residential building with multiple units. Each share holder is given right to one housing unit subject to agreement which resembles a lease. Simply speaking a person who want to own but financially not ready joins group of people who together acquire a real estate with multiple units or homes and that person is given a right to live in one of the unit. You need co-op board’s approval to sell or modify. This type is little complicated, not much popular.
• Condominium. This is the type of owner the ownership which is the reason you are reading this article.  It is a type where a single unit of real estate is owned, while use and access of common facilities like hallways, elevators, lobby, gym, pool and exterior is controlled by the board of directors formed by the association of owners.  A management company is hired and each owner pays a maintenace fee.

Now Let us briefly look at some types of homes.

• Detached – is the type where a house is built on the piece of land which is not connected to any other house from any side. This type is most desired, but it is costly. Owners of this type enjoys the maximum price appreciation as compared to other property types.
• Semi-detached – is normally attached to another house or unit. Basically it looks like a detached house turned into two houses seperated buy wall in the middle. These house are normally less costly as compared to Detached. And appreciate in price little less as compared to detached.
• Link – is a house normally looks like a detached from out side or some times it may be connected from garage only, but they are linked from the foundation. I have not seen people giving me negative feed back about this type of property. Most people who want the cost be lower but look like detached they don’t care if it is linked from foundation.
• Townhomes – These are multi units connected together. Buying a corner townhome just feels like a semi-detached. Low cost as compared to semi or detached.
• Apartment – It is a residential unit in hi rise or low rise buildings. Most of them are two bed room, but a lot f building offer 3 to 4 bed room unit. Cost is low as compared to all of above property types.

Conclusion:

Now that we know types of property and type of ownership are two different things. We can say that Condominium is type of ownership in which a single residential unit is owned and a maintenace fee is paid to property management company to maintain the building. This can be an apartment, Townhome,  a semi-detached or a detached. Majority of condos is found in apartments that is probably why generally when a condo is mentioned people think it is an apartment. Another reason can be is that I have never seen an apartment as freehold. They are either rentals or Condos.

If you find the info in this article were useful please do leave your comments.

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