Buyer FAQ

When do I have to pay HST?
You pay HST on the purchase of a new construction property. The
HST rebate is 71.43 per cent of the provincial portion of the HST,
up to a maximum rebate of $26,250. For HST rebate information
click here.

HST is payable on the real estate commission, lawyers and notary's fees on all real estate transactions.

How much is a typical deposit?
5% is average, though a higher deposit can be attractive to the
sellers in certain situations

When is the deposit due & how is it payable?
Your deposit is due usually

within 24 or 48 hours of subject removal
and payable to the Buyer's realtor's brokerage's trust account;
however, these can both vary depending on what is written in the
contract. Team Clarke writes all of our contracts with deposits
payable by bank draft and they are payable to RE/Max Crest In Trust.

How long is a typical subject period?
Anywhere from 5-7 days

What is FINTRAC?
The Financial Transactions and Reports Analysis Centre of Canada
For more information click here

Does the property have an oil tank?
If the home owner has not removed an oil tank (with documentation), the only way to know whether or not the property has an oil tank is to have the property scanned by a professional oil tank removal company. If the seller has not done this (with proof in writing) then it is advisable to have any property built before the mid 1970's scanned.

What is Designated Agency?
When a REALTOR® or REALTORS® work solely on your behalf in real estate transactions, the REALTOR® and brokerage are bound by ethics and the law to be honest and thorough in representing you. The brokerage must account for all money and property placed in its hands while acting for you. The REALTOR® must:

  • Provide undivided loyalty to you (Client) by protecting your negotiating position at all times, and disclose to you all known facts which may affect or influence your decisions;
  • Obey all lawful instructions which you give the REALTOR® to act on your behalf;
  • Maintain the confidentiality of your information (financial, legal, personal, etc.)
  • Use reasonable care and skill in performing all assigned duties in the role as agent.

What is Limited Dual Agency?
Limited Dual Agency occurs when the Designated Agent represents both the buyer/tenant and seller/landlord in the same transaction or two buyers competing for the same property. In this arrangement, the REALTOR® cannot be concerned exclusively with your interests in the transaction, since they are acting on behalf of the other party as well. Both the seller and the buyer or the competing buyers should fully consent to a limited dual agency arrangement in writing.

A REALTOR® who has consent to work as a limited dual agent must adhere to the following restrictions:
A. Deal with both parties impartially;
B. Have a duty of disclosure to both clients, except that:

i. REALTOR® must not disclose that the buyer/tenant is willing to pay a price or agree to terms other than those contained in the offer, nor disclose that the seller/landlord is willing to accept a price or terms other than those contained in the listing;
ii. in the case of competing buyers, the REALTOR® must not disclose the amount or terms of any offer to purchase or lease made or contemplated by either buyer/tenant;
iii. REALTOR® must not disclose the motivation of one Client to the other Client, unless one of the Clients has authorized such disclosure themselves;
iv. REALTOR® must not disclose buyer/tenant’s or seller/ landlord’s personal information to the other Client, unless authorized in writing. (This refers to information not otherwise disclosed in the transaction documents.)

C. Must disclose to the buyer/tenant any defects about the physical condition of the property that are known to the REALTOR®.

What is a Subject to Sale Offer?
An offer that is subject to the buyer selling their home before removing all subjects on their purchase to buy your home.

What items are included with the sale of a home?
Any fixture is included with the sale of a home unless otherwise specified in writing on the contract of purchase and sale. A fixture is something securely fixed in place. Typically buyers will ask sellers to include the appliances and window coverings in the contract. If you want anything else included you must tell your Realtor® and have them write it in the contract.

What are the Completion, Adjustment and Possession dates?
Completion Date. This is the date when the Buyer's money is transferred to the Seller and ownership of the property transfers to the Buyer. Adjustment Date. This the date which a lawyer or notary will use to adjust the property taxes paid and owing between the buyer and seller. It is usually the same date as the Possession Date. Possession Date. The Possession day is move in day! This is date when the Buyer is officially allowed to move in. This date is often day or a couple of days after the Completion Date, but it can be any date the Buyer and Seller agree on. Most of the time the Buyer takes possession of the property at 12 Noon, but this is negotiable.

When should I call a mortgage broker?
It is best to call a mortgage broker as soon as you decide to purchase a property.

What is a Working With A Realtor form?
It is a form that is used to explain the relationship between you and a realtor and of the collection, and use and disclosure of personal information.

What is CMHC?
The Canada Mortgage and Housing Corporation provides mortgage loan insurance that enables you to buy a home sooner with a minimum down payment of 5%.