The Toronto Real Estate Transaction Process Going From
Buyer To Toronto Property Owner
For contracts and agreements in the sale of real estate to be legal in Toronto they must be spelled out on paper, rather than verbal, and signed by both the Buyer and Seller.
When you have found a Toronto property you would like to purchase here’s how the whole buying process unfolds:
Your real estate agent will discuss with you comparable recent sold properties and once you decide on a price to offer, the agent prepares an Offer To Purchase.
The Offer To Purchase indicates not only the purchase price but also the closing date or the day you want to take possession of the property as well as the amount you will pay as deposit. You do not have to be physically present in Toronto for the closing date.
The deposit is usually 5%-10% of the purchase price. The deposit amount has to be in the form of a certified cheque, bank draft or money order from a Canadian bank made out to the Listing Brokerage. It is held in trust with the Listing Brokerage and on the day of closing goes towards the purchase price.
An Offer To Purchase is not good forever but has a time limit date on it called an Irrevocable Date. If the Seller does not respond to your offer before this date your offer expires and therefore is no longer valid.
As a prospective buyer, once you sign the Offer to Purchase, your agent will then present the offer along with the deposit cheque to the Seller through the Seller’s real estate agent.
The Seller can do one of three things in response to your offer. He can counter-offer by making changes to your Offer To Purchase, this is known as a sign-back. He can accept your offer or he can simply do nothing and let your offer expire.
Negotiations proceed back and forth on the Offer to Purchase until the buyer and seller both agree.
Once both the Buyer and Seller agree to the terms of the Offer To Purchase it becomes an Agreement of Purchase and Sale. A copy of the signed Agreement is sent to your lawyer who will review the conditions of the sale and note the closing date.
All conditions of the Agreement, such as home inspection, financing or review of the Status Certificate must be satisfied by the stated date.
For a condo purchase, the Agreement will be conditional upon your lawyer reviewing the condominium documents known as a Status Certificate which includes the by-laws, financials, and declaration of the condo building. It may take up to 2 weeks for the condo building to supply these documents at a cost of $100.00. Once your lawyer has reviewed these documents and finds them satisfactory you will sign a waiver.
If you are purchasing a house, the Agreement may be conditional upon a home inspection. You will only have a few days to do a home inspection so it is important to have an appointment with a home inspector arranged ahead of time.
The Agreement may also be conditional upon the Buyer getting financing for the property. Your agent will send the Agreement to your lender or mortgage broker for approval.
If all conditions are met the Buyer signs a waiver and the sale of the property is no longer conditional but now firm. If any of the conditions are not met during the stated time period a Buyer can cancel the Agreement.
Your lawyer completes a title search on the property to ensure that the seller is the legal owner of the property. The lawyer also prepares a Statement of Adjustment which confirms the selling price and the amount the buyer has to pay the seller on the day of closing. The buyer then provides these funds to the lawyer in trust.
On the closing day, the lawyer pays the funds to the Seller, registers the property in your name and provides you with a deed to the property.
Chestnut Park Real Estate Limited Brokerage, independently owned & operated
MLS®, REALTOR®, and the associated logos are trademarks of The Canadian Real Estate Association.
The listing content on this website is protected by copyright and other laws, and is intended solely for the private, non-commercial use by individuals. Any other
reproduction, distribution or use of the content, in whole or in part, is specifically forbidden. The prohibited uses include commercial use, "screen scraping",
"database scraping", and any other activity intended to collect, store, reorganize or manipulate data on the pages produced by or displayed on this website.
The information contained on this site is based in whole or in part on information provided by members of The Canadian Real Estate Association, who are responsible for
its accuracy. CREA reproduces and distributes this information as a service for its members and assumes no responsibility for its accuracy.
This website is operated by a brokerage or sales person who is a member of The Canadian Real Estate Association.
REALTOR®, REALTORS®, and the REALTOR® logo are certification marks that are owned by REALTOR® Canada Inc. and licensed exclusively to The Canadian Real
Estate Association (CREA). These certification marks identify real estate professionals who are members of CREA and who must abide by CREA's By-Laws, Rules and the
REALTOR® Code. The MLS® trademark and the MLS® logo are owned by CREA and identify the quality of services provided by real estate professionals who are
members of CREA.
The trademarks MLS®, Multiple Listing Service®, and the associated logos identify professional services rendered by REALTOR® members of CREA to effect the
purchase, sale and lease of real estate as part of a cooperative selling system. Canadian Real Estate Association Last Updated: 5/25/2019 02:40:43 AM