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    Who Are All The Key Players in a Real Estate Transaction?

    Who Are All The Key Players in a Real Estate Transaction?

    The Key Players in a Real Estate Transaction

    Buying a home or selling a home requires more than just the buyer and seller. You’ll also need the services of a variety of home-related professionals, and we can help you find many of the right ones.

    Here are the key players in a transaction and the roles they play:

    Realtor

    LSTAR      MLS

    Finding a home to purchase is a big task, and a Realtor can make it a lot easier by doing a good deal of looking for you.

    The Realtor’s role is to help you sift through available properties, identify those that most closely meet your requirements, and arrange for you to view them. Ideally, your Realtor is more than a salesperson.

    The top Realtors help provide you with Listings AS SOON AS POSSIBLE; they have 2 or 3 systems to do so because we all know that well-priced homes sell quickly. He or she should serve as a resource person who can provide valuable advice and help you make an informed purchase decision. They will also help you with your offer if they are a buyer’s agent working for you; they help negotiate the offer in the BEST terms for you, the homebuyer.

    The Realtor®:

    • A licensed real estate person keeps tabs on the latest properties by tracking the Multiple Listing Service (MLS) and other sources.
    • May also be acting as the Realtor for the seller when the property is an MLS listing. However, suppose you have already engaged a  Realtor to help you find a property. In that case, he or she will act expressly and contractually in your best interest and known as Buyer’s Agency.
    • Negotiates terms and conditions of your purchase with the seller’s Realtor or with the seller directly (if a private seller or their listing).
    • The seller pays the Realtor’s commission out of the proceeds of the sale. Usually, it is split between the buyer’s Realtor and seller’s Realtor if both are involved.
    • Arranges to get information for you or certain conditions to be fulfilled, as agreed with you — i.e. survey, appraisal (for mortgage purposes), and a home inspection report.
    • Selecting a Realtor to help you buy or to sell a property is something you should take some time doing so. I have put together some questions you may want to ask; a professional Realtor thrives on questions!

    Lawyer

     signing of a real estate transaction

    Your lawyer makes sure that the property you purchase is legally yours and comes with no strings attached.

    When you buy property, you are not just buying the land and building; you are also accepting the legal rights of ownership, so you need to be confident that no other party has a claim to them. Your lawyer will confirm that there are no legal obstacles to your purchase and help it proceed smoothly.

    The lawyer:

    • Conducts a title search to ensure that the seller is the property’s valid owner, ensuring that the current or proposed occupancy usage conforms to local by-laws.
    • Obtains all necessary documentation, including:
    • Compliance Letter acknowledging that no outstanding liens (legal claims) or work orders are in effect
    • Tax Department release verifying that property taxes are up to date
    • Will handle the transfer of ownership from the seller to the buyer and the mortgage’s registration on the title.
    • Ensures arrangements are in place for funds to be available for closing.
    • Coordinates with lenders the setup of legal documents for any mortgage security.
    • Ensures that all mortgage terms and conditions are fulfilled and that title is clear to make undertakings to the lender(s). May obtain title insurance on your behalf if there is an issue surrounding the title that may cause a claim or work order of some kind in the future.
    • Arranges for the signing of legal documents and the submission of remaining funds.
    • Coordinates closing of the purchase transaction with the lawyer(s) for the seller of the property.

    Mortgage Lender

    Mortgage

    The mortgage lender is the financial hub in your real estate venture and can either work for the Canadian banks or be a mortgage broker who has access to not only the big banks but secondary lenders as well.

    It pays to shop around in today’s mortgage market because there are many lenders and different financing options available, and fees!  Save yourself some time and trouble.

     

    Appraiser

    Home Appraisal

    Appraisers assess property value for the lender.

    When you purchase a property, the lender needs to be satisfied that the price reflects its real market value. An appraiser is an officially accredited valuator who is hired to inspect the property for the lender to assess and certify its value.

    The appraiser:

    • Provides the lender with an accredited opinion about the property’s market value (to be) purchased, which can be compared to the purchase amount.

    Home Inspector

    home inspection

    The Home Inspector acts as your extra pair of eyes, seeing things about a property that may not be visible to you.

    If you are buying a resale home, it’s always advisable to have it checked by a Home Inspector as a purchase condition. This individual (not requiring provincial licensing in most cases) will inspect the property for major deficiencies, which may not always be apparent. The results are presented in a written Home Inspection Report. See this report on choosing a home inspector and why!

    The Home Inspector:

    • Identifies the soundness of the structure and any improvements that have been made.
    • Notes any specific deficiencies and their impact on the value of the property.
    • Estimates the cost to correct any identified deficiencies.

    Note: There can be many other professionals or non-professionals involved in your real estate transaction. A good thorough Realtor will ensure you are working with qualified professionals. With experience and trial and error, only work with the more competent lawyers, home inspectors and mortgage lenders.