Hi Seniors & Dear Friends

I am planning to buy a townhouse, directly from the owner.

I am a first time buyer... so, can anybody kindly enlighten me on the step-by-step process of \"buying directly from owner\"?

I have read some articles on >> homebuying dot about dot com but not sure these applying to ontario...

Plz help! All ideas welcome!!

Thx in Advance!
Anand

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Get hold of a lawyer... will charge you $600-$800.. He can get you all the papers in order. You may want to get a home inspector as well, especially if the place is old.

In search on the same I have come across this site bytheowner dot com which not only answers all the FAQ s but provides almost every information that a private seller / buyer needs to know . http://bytheowner.com/ .

The interface is good , plots properties on maps just as mls .. Plus gives all needed info and steps on offer letter , conditions , legal process , inspection process etc .

This website is meant for those people who wish to by pass real estate agents and wish to do private transactions .

In short the steps are and we have a couple of excellent sticky threads in the Real Estate section of CD :


(copied from the website which has all forms in printable format as well )

Would like to make an offer on a property
01
Call the owner and visit the property

A01.

Be sure to ask the owner lots of questions and do a through review of the property. If you are interested, discuss price, closing date, and conditions with the owner.
ByTheOwner.com recommends always having your real estate lawyer review anything before you sign, so the first step in making an offer is to consult your real estate lawyer. After deciding that you would like tomake an offer on the property, you will need to get the following information from the seller: Sellers Names, Property Address, closingdate, conditions, chattels included and excluded…

All questions regarding the offer to purchase should be forwarded to your lawyer.
02
When a seller is presented with an offer, 3 possibilities are available

A02.

1. Accept the offer.
2. Reject the offer.
3. Make a counter offer.
03
Offer to Purchase

A03.

* Will contain the legal names of the purchaser and seller.
* Will contain the legal address of the property.
* Will contain the amount of the deposit and the amount to be paid on closing – paid in trust to the seller’s lawyer.
* Will contain what is included (chattels) – i.e. fridge, stove, washer and dryer, fixtures.
* Will contain what is excluded – i.e. satelite dish, wood stove, ...
* Will include any rental items – i.e. hot water heater.
* Will include an irrevocability date – this is the date and exact time that the offer will expire if not accepted.
* Will include a completion date – this is the date that the contract will be filled.
* Will include conditions.

04
Some popular conditions are

A04.

Conditional on financing – This allows the buyer time to arrange a mortgage or collect the money to be paid. One week is usually ideal for a buyer to find a mortgage. If they have not received approval for the money within the stated time period, then the contract is void and your home is back on the market. If the buyer receives financing before the week ends, then the buyer waives this clause and the contract is still valid. The buyer gives a written waiver to their lawyer and the buyer’s lawyer sends it to the seller’s lawyer.

Conditional on home inspection – This allows the buyer time to have a home inspector come and evaluate the home. One week is usually ideal for a buyer to find an inspector and to have a home inspected. It is really important to note that a home never “fails” a home inspection. A home inspection is simply a home expert coming in to give the buyer their opinion of the home. The home inspector will tell the buyer what they think of the home and all the problems or potential problems they see about the home. The buyer can then decide if they wish to waive the home inspection clause and buy the home or they can decide that they did not like what the home inspector said and then they can back out of the contract. It is all up to the buyer as to whether they waive the clause.

For example – the home may have serious damage and the home inspector points out many problems with the home, it is still the buyers’ choice whether they want to continue with the purchase or not. Essentially, clauses like financing and home inspection are ways for buyers to cancel the offer to purchase if they want to. It is for this reason that sellers only allow the buyers about 1-2 weeks to fulfill these conditions. If you allow a buyer 2 months to arrange financing, then they can come back to you in two months and say “we didn’t get approved” and the contract is not valid and your home is back on the market. Again, it is important to educate yourself and read our guide.


05
Offer accepted - Conditions waived - It's Sold!!!

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Fido.

Here are some steps that can help you...

1. View the property
2. Maybe visit a couple of comparable properties
3. Research what similar properties are selling for
4. Fill out the Agreement for Purchase and Sale (choose the Freehold or Condo app)
5. Make the offer conditional (usually request 5 business days) on:
a. Financing(optional)
b. Inspection (a must in my opinion)
6. Waive the conditions if both are filled to your satisfaction
7. Sign all documents with your lawyer before closing
8. Pick up your keys on closing date (from owner or your lawyer)


I have only simplified the steps. The lawyer you use will detail each step and guide your all the way..

***I would highly recommend getting mortgage pre-approval before starting the buying process.

ENJOY your home...

Nice one . Thanks Agent 007 .. I mean Raj

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Fido.