BUY A PROPERTY

1. Why should I buy with a Dicasi real estate broker?
  
A real estate purchase is a big investment and a complex process.  You do not want to overpay for the property or to enter into a contract that can become a great liability.  A Dicasi broker will ensure that the contract you enter into is to your advantage and has all the necessary elements required to protect you. He will also make sure that when a property that suits your requirements comes on the market, you are informed without delay.
 
 
 2.What commission does a Dicasi real estate broker charge?
 
 You basically have two options:

 a) If the property is listed on the MLS, it is the seller who pays the commission, so there is no commission payable by you.
 
 b) If the property is not on the MLS, you can hire a Dicasi broker to work exclusively for you, through a buyer's contract, which means that the broker will directly contact the owners to find the property that meets your requirements. When a transaction is concluded, the commission is then payable by you, under the terms previously agreed upon in the buyer's contract.
 How does this benefit you?  Even if you have to pay the commission, your total acquisition cost will be less. Call your Dicasi broker for additional information.
 
 3. What steps are involved in buying a property?
 
 MORTGAGE PRE-APPROVAL

 The first step would be to obtain a mortgage pre-approval. This step has several advantages: 
 • you know how much you can afford
 • it reserves the mortgage rate (see the Financing section)
 • proves to the seller that you are able to afford the property, which in some cases may result in a lower offer being accepted just because you provide assurance that the transaction can be concluded
 • can save you time and money, by avoiding visits and inspections of properties that you cannot afford
 
FINDING THE PROPERTY

Next step is finding the property that best suits your needs, wants and budget.  There are different types of properties, and each has its advantages and disadvantages.  The property you plan to acquire has to suit your lifestyle, present and future.  A Dicasi broker will consider your requirements, explain what options you have and propose the best solutions.  Once the target type of property is identified, then the visits start.  A preview of properties that meet your requirements can be done during your meeting with the Dicasi broker.
 
 VISITING

 If you want to get a good deal, you have to act fast.  The best properties are being sold in multiple offers and within a few hours or a few days.  So when you receive a property you like from your Dicasi real estate broker, let your broker now that you are interested.
 
Please be on time.  Usually there are several visits scheduled. Your Dicasi broker will plan the visits so that you have enough time to visit the properties, while maximizing the number of properties you can see in a given timeframe. The sellers are also informed that visits will take place at specific times, so please be on time.
 
MAKING THE OFFER

For each type of property there are specific conditions that your offer should include. The basic ones are inspection and financing, but additional conditions should be included in every offer. Your Dicasi real estate broker will let you know what they are and make sure the contract is drafted accordingly.
 
 An offer to purchase, once accepted, becomes a binding contract.  Do not take this lightly. It entails contractual and extra-contractual obligations and liabilities.  Your broker will explain.
 
TITLE TRANSFER

Once all conditions have been fulfilled, the property titles are sent to the notary.  You must schedule a meeting with the bank to open the mortgage account. Do not postpone this meeting, as the bank will only send the mortgage instructions to the notary only after the mortgage account has been opened.
 
Fire insurance is mandatory, and the notary cannot transfer the title if you do not have insurance coverage. Call in advance the insurance companies, shop for the best rate and terms and make sure they fax a copy of the house insurance to the notary.
 
EXPENSES
You should prepare for the additional expenses in advance.  The banks usually require that you have available in your account besides the downpayment an amount equivalent to at least 1.5% of the purchase price to cover the closing expenses.
 
•Downpayment: minimum 5% for principal residence, min 20% for a second property or an undivided property. Consult your Dicasi broker for details.
•Inspection:  ~ 500$+, depending on the type of property
•SCHL insurance tax: the insurance tax on the SCHL insurance is payable at the notary. The SCHL insurance can be added to the mortgage or paid in full at the notary.
• Notary fees: ~ 1 300$
• Adjustment for taxes at notary = reimbursement of the part of the municipal and school taxes paid by the seller
• Other adjustments:  reimbursement of expenses made by the seller that benefit the buyer (ex: heating oil)
• Property transfer tax - calculated on the highest of either the municipal evaluation or the purchase price, adjusted by a comparison factor (1.14 in Montreal in 2013). For Montreal, the transfer tax is calculated as follows:
    0.5% on the first 50000$
    1% on the portion between 50 000$-250 000$
    1.5% on the portion between 250 000$ - 500 000$
    2% on the portion between 500 000$ - 1 000 000$
    2.5% on the portion that exceeds 1 000 000$
 The transfer tax is invoiced by the municipality directly to the buyer. Depending on the municipality, it can take 1-3 months to receive the invoice.
•Moving expenses: moving, disconnection and connection of services, appliances, etc.
 
INCENTIVES

Some municipalities give incentives to different groups of purchasers for purchasing a property on their territory. Check with your Dicasi real estate broker to see if an incentive may be available to you.
 
AFTER THE PURCHASE

Always pay your mortgage and taxes on time.  Also, make sure to keep your house in good condition. In the inspection report you also have indications on what maintenance work should be performed regularly on your property and when to do it. If you do not find it, contact your Dicasi broker for the recommended maintenance schedule.  Repairing any defect without delay and performing the recommended maintenance can save you a lot of money in the long run.
 
For any additional questions or information you require, do not hesitate to contact your Dicasi real estate broker.