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Progression of  a Typical Real Estate Transaction
Including New Mortgage Financing

 
The process of a typical real estate transaction can be broken down into three main parts.
The following is a sequential list that explains each part of the process.
 
Note: This sequential list is intended as a guide and should not substitute consultation with a qualified Real Estate Agent.
 
Step One:
 
Finding a home & making an Offer to Purchase.

  • Buyer(s) meet with their Realtor to discuss wants & needs, also to explain the buying process.
  • Buyer(s) make an appointment with a lender to obtain mortgage pre-approval.
  • Search for & find new home.
  • Buyer(s) make an offer to purchase a property often times with Buyer(s) conditions such as:
    • Conditional to Financing
    • Conditional to a home inspection
    • Conditional to review and approval of Condominium Documents (if applicable) etc.
  • Offer is negotiated.
  • Seller accepts Buyer(s) offer to purchase by revising and signing the contract.
  • Deposit is placed "in trust". In Calgary the deposit is usually between $5,000 & 10% of the property value and is negotiable
  • Due diligence process:
    • Due diligence typically takes from 5 to 10 business days.
    • (If any of the conditions are found unacceptable to the Buyer(s) the sale is void in accordance with the terms and conditions of the contract.
    • Waiver of conditions; as each condition is met, the Buyer(s) must remove (waive) the condition from the Offer to Purchase within the predetermined condition removal time period.  This is done by way of a written Notice to the seller. If written Notices are not completed & presented to the Seller(s) in time the sale can be void.

We will handle all conveyancing of the purchase contract and all pertinent information will be forwarded to your Lawyer on your behalf.
 
Step Two:
 
Getting things in order for your move.

  • 2 weeks prior to possession date Buyer(s) instruct their lawyer how to complete title description, (how they want their names to be registered on title) and arrange to meet with their lawyer at a later date to execute (sign) all documents.
  • Buyer(s) make arrangements for transfer & connection of utilities, telephone, mail, etc.
  • The Lender communicates the Mortgage instructions to Buyer(s) Lawyer.
  • Seller`s Lawyer prepares transfer for execution (signing) by the Seller.
  • Approx. 1 week prior to the Possession, Seller’s execute (signs) transfer with their Lawyer.
  • The Seller`s Lawyer delivers transfer of land documents to the Buyer`s lawyer under trust conditions.
  • Buyer(s) need to be sure to arrange for home insurance coverage as it is mandatory before possession is granted. 
  • Buyer`s Lawyer calculates the cash balance the Buyer(s) will need to close their home purchase after all adjustments & fees.
  • Buyer’s Lawyer delivers this "Statement of Adjustments" to the Buyer(s).
  • Buyer(s) execute (sign) transfer & mortgage documents & deliver cash difference (balance owing) from the Statement of Adjustments.
  • Balance owing forwarded to Seller`s lawyer under trust conditions.
  • Buyer`s Lawyer submits transfer and mortgage documents to Land Titles Office for registration.
  • Seller`s lawyer receives balance owing and holds it "in trust" pending completion.
  • Seller`s lawyer registers a Seller`s caveat.
  • Registration of transfer and mortgage obtained - title is now in Buyer(s) name subject to mortgage.
  • Buyer`s Lawyer requisitions mortgage funds and forwards the mortgage funds to the Seller`s lawyer "in trust" so that any unacceptable title encumbrances can be removed.
  • Seller`s lawyer receives mortgage proceeds and holds "in trust" pending completion.
  • Seller`s lawyer obtains discharge of encumbrances and reports to Buyer`s lawyer. Pays out Seller(s) mortgage if any.
     
     
    Step Three:
     
    Possession:
    (Note: This section may not occur in this exact order.)

    • On the possession date, Seller`s lawyer advises Seller`s Realtor of release of keys to Buyer(s).  
    • Buyer(s) does possession walk through with Buyer`s Agent.
    • Copy of acceptable title, in Buyer`s name, delivered to Buyer`s Lawyer.
    • Buyer`s Lawyer reports to financial institution.
    • Seller`s Lawyer reports to Seller(s): accounts for funds received and releases funds to Seller(s).
    • Transaction is complete.
      •  

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