Important Questions & Answers – Home Buying – Updated

Electronic Signature Real estate

Updated November 27th, 2017

Here are some important and most pressing questions about the Home buying or Home selling services. I will updating as I get more feedback from our potential readers and clients. Please feel free to email me is you have any question related to Real Estate Service.


I booked a Condo during last year. The prices of homes and Condo have dropped significantly, can I back off from the deal and if yes, how much penalty am I looking at?

Well first thing, there is no cooling period in real estate. Based on the historical facts, the prices of Real Estate always increase although it may see some sluggish growth for 1-2 years. First and foremost, you need to evaluate why did you book the home in the first place. Were you looking to make a profit or were you looking to make it your home. If you have the second option as the answer, do not worry and you should go ahead with the purchase. The cooling off period is only temporary and if you can afford to pay, you will see the increase down the line. If you had bought this for investment, then you can think about backing off and but there are several factors to consider.

First and foremost you should never rush into an agreement. If you have done so, do not panic to back off. Read the terms and conditions carefully including the back off clause and penalties. In case you had bought a Condo, the conditions are different from buying a home. Unless you’re buying a condo from a builder or developer before the condominium corporation is registered, or the agreement includes a provision that would permit you to cancel it, you can’t back out of a real estate purchase without consequences. Once a buyer and a seller sign an Agreement of Purchase and Sale, the signed document becomes a legally binding agreement. If you decide to walk away from the deal, you risk losing your deposit, potential legal action from the seller and legal action to recover commission from the brokerage that is representing you.

Consider your needs before you make a decision.

need for home buy



I am first buyers and what important things should I consider before making a purchase?

Here is the list of Common mistakes by First time home buyers. You should be very clear on what your requirements are. Do not be impressed by your friends and relatives with what they have got. It is ultimately you who is going to pay the mortgage. So be realistic when buying a home. This is a lifelong serious investment.


What is multiple representations in Real Estate and do you support new restrictions on it?

multiple representations in Real Estate

We fully support new stricter rules for multiple representations to better protect our home buyers and sellers. Multiple representations occur when the same broker or salesperson represents both the buyer and the seller in the same transaction. This may be conflicting the interest of the seller or the buyer. A new rule called mandatory designated representation (MDR) is in place to protect the interest of the consumer. Under MDR, a broker or salesperson can represent only one party in a transaction. However, the same brokerage could still represent multiple parties, as long as each party worked with a different representative at that brokerage and there is no sharing of confidential information between the two representatives.


What is the role of Title insurance in buying home and should I buy it?

Title Insurance

Title insurance is not mandatory in Ontario, but it’s important that you should consider buying it as it safeguards your interests in the following areas:


    • Title fraud, which occurs when someone uses stolen or forged documents to steal your identity, then transfers your home’s title into their name, without you knowing about it.
    • Existing liens against title, such as property taxes left unpaid by the previous homeowner.
    • Encroachment issues, where a structure has been erroneously built too close to or on a neighboring property.
    • Other title-related issues that can affect your ability to sell, mortgage or lease your home.

For a one-time fee, or premium, title insurance provides coverage for as long as you own a property.


What is the new Stress all about and should I be worried as a first time home buyers?

mortgage approval

You can read all the new stress test here.

How can I get my refund from Brokerage in case of a failed Deal:

Full refund is made if the deal is canceled due to several reasons including unfulfilled conditions. A brokerage can only return a deposit when a deal falls through if:

• A mutual consent or direction is signed by the parties (i.e., buyer and seller) agreeing to the disbursement.
• A Court Order authorizes the disbursement.


Should the Home Inspection be must or can I skip it:

Home Inspection

No way, you should never skip a home inspection. A home inspection is first and foremost a visual examination of a home’s systems. The inspection can identify issues with a home’s foundation, electrical, plumbing, roofing, heating and air conditioning systems. You don’t want to spend thousands of $$ on repairing things which can be easily reported during home inspection. Again, it’s your hard earned money and you don’t want to take chances. Rather, you should join the Home inspector the day he is inspecting the home. This will help you understand the overall home situation etc. This is very helpful especially if you are first time buyers.

Is electronic Signature legal to sign Real Estate Deals and offers?

Electronic Signature Real estate

Yes, Electronic Signature such as DocuSign is 100% legal for any type of Real Estate Transaction.  So if you are Tech Savy or environment conscious seller or buyer, you can electronically Sign the offer and this will be considered legal and binding. As always, please read the terms of agreement carefully before signing any document.

How much Land Transfer Tax do I have to pay if I am buying a home?

If you are a first time home buyer and looking to buy a home in Ontario, you may be eligible for a full or partial refund of the Tax. You have to fulfill certain conditions to be able to claim the refund. Here are the conditions:

  • You must be at least 18 years of age.
  • You do not have a home owned on your name in Canada or anywhere in the world
  • Even your spouse cannot have owned a home or interest in a home, anywhere in the world while he or she was your spouse.
  • You should not have acquired the home as a gift or through an inheritance.

Being a first time home buyer, you do not pay not land transfer tax if the value of the home is below  $368,000. Any home value above $368,000 get the tax slab and would receive a maximum refund of $4,000.

For repeat home buyers, the tax slab is as follows:

1st $55,000 0.5%
$55,000.01 to $250,000.00 1.0%
$250,000.01 to $400,000.00 1.5%
$400,000.01 to $2,000,000.00 2.0%
Over $2,000,000 2.5%


Effective April 21, 2017, a 15% Non-Resident Speculation Tax is imposed on the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) or taxable trustees. This new tax is in addition to Ontario’s current Land Transfer Tax.

Contact me if you are looking to Buy a home or sell a home in the GTA.






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