Have you ever wondered why there are so many people involved when you Buy and Sell? What do they all do and how do they get paid? We get this question a lot from first-time homebuyers but also from people who have not bought or sold in a while, or the last time they did it was out of province or country. It is different everywhere, so make sure to check with your local Realtor.

Realtors: This can be a single agent or a team. It is best to get someone who knows the hyper-local market that you are Buying and Selling in. Usually, the Buyer has their Agent and the Seller has their own agent, and each works for a Real Estate Brokerage. This may be the same person, or the same Brokerage but that is called multiple Representation in Ontario and that requires a whole other conversation. But, in a typical transaction, each party has a person representing their best interests. The Selling agent's Brokerage charges the Seller a commission and the Buyer’s Agent, through their Brokerage is paid a portion of that commission which is subject to HST in Ontario. There are MANY benefits to using a Realtor to assist you in Buying and Selling the largest investment of your life. The main one is that we do this FULL TIME and always are working in your best interests to help you with your goals. We have the knowledge to navigate the entire process from beginning to end whether it is the Buying or Selling side and both are very different. If you need more information about the benefits of having a Realtor represent you, click here.

Lawyer: In Ontario, when you buy or sell a home you must use a Lawyer to close on the transaction. Their services are required before the property closes but you can call upon them for legal advice at any point during the process. It is a good idea to use a Lawyer that is reasonably local to the property so they can assist you in the best way. Your Realtor will coordinate with the Lawyers to get all contracts to them and ensure that timelines are being met. The Lawyers’ fees are payable by either the Buyer or Seller, depending on which side of the transaction you are on and the fees are different for either side. These fees are also subject to HST. For more information on fees, we can recommend a fantastic resource here. Also, if you are unsure who to use for your Lawyer, we are able to recommend some to you.

Inspectors: These are professionals that are typically hired during the conditional period after an offer is accepted on a home. Some Sellers will opt for a pre-list inspection, in which case the fees are then paid by the Seller. Typically the inspections are part of the due diligence for the Buyer and therefore the fees are paid by the Buyer. Some of the most common inspections are building inspection, well inspection, septic inspection. If issues are found during these inspections and you need individual tradespeople to provide quotes on additional work, this would also be an extra expense paid by the Buyer. Insurance inspectors are sometimes called in to gather more information for the insurance company, but this fee is typically included in your homeowners insurance policy.

Appraisers: These are licensed representatives that are sent from the financing company to provide an appraisal value of your home to the lender. This can be done by visiting the property in person, gathering information from a database, or driving by. Each lender is different and every property is different in what is required to satisfy the lender. The fees will range and the majority may not be covered by the lender. If the fees are not covered by the lender, the fee is the responsibility of the Buyer.

Lenders: These are the people that give you the money! Typically you meet with the desired lender before you start looking for a home to obtain a pre-approval and discuss what mortgage amount and payment options work with your budget. Lenders can be from individual Financial Institutions or can be Mortgage Agents that work with many different lenders and will find the best products for your needs. Each of these individual fees is paid by the financial company, so there is no additional cost to you as a Buyer. They will order the appraisal, if needed, and will require a lot of documents for income verification and credit information so it is important to be in touch with them early in the process to get the ball rolling.

It is important to hire people you trust and work with professionals in their field to ensure your mistakes are not costly and the process can be smooth and actually enjoyable. If you would like more information on the services we provide or need us to recommend a great affiliate partner, we are happy to help. 

Author: Tanya Evoy, Real Estate Broker and Team Lead

Evoy Real Estate Team RE/MAX Affiliates Realty

You can email Tanya here or call direct: 613-285-4214

Posted by Tanya Evoy on
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