Top 3 Real Estate Tips for Canadian Buyers and Sellers
Tuesday Jun 22nd, 2021
[00:00:00] Elyse: [00:00:00] Hello and welcome to the real estate panel. This is episode seven. We are a group of real estate agents from different areas in Ontario who come together every week to discuss hot topics in real estate. I have Mike melody and Devorah here with me today. Today, we're going to switch it up a little bit and we are going to talk about real estate rules.
[00:00:21] I just saw recently in the news, a couple came forward to talk about their experience in real estate and it didn't go so well. There was some information leaked about one offer to another agent, and they were really upset. And their purpose of sharing this information with the media was to make people informed about their rights and rules that are, that go along with Realty.
[00:00:44] So we decided today that we would put an episode together for you just to give you a little bit more information about the rules and regulations around a real estate offer in a real estate deal. So as a buyer and a seller, are you, [00:01:00] are you aware of how things work? The question is probably not, which is why you hire us as real estate agents today.
[00:01:07] My panel is going to answer some hot topic questions regarding the rules and regulations. I quick information session to help you on your buying and your selling journey. So I'm going to start with your melody. After you viewed the home and you're ready to make an offer. Are you aware of the fine print? Do you know how long your offer will be good for?
[00:01:27] And are you aware of everything that you're agreeing to melody? Can you tell us a little bit of, a little bit more about this stuff?
[00:01:34] Melody: [00:01:34] Yes, absolutely. And for any new viewers to this channel, I am
[00:01:38] melody. I'm based in Toronto. I am within your phone in the trial. So to answer your question on these, I will not go over a few very popular terms in real estate.
[00:01:50] There is the ear book. The closing date title. So it's any commission. So I'll start with the first one. What is the year? The date? So this is the [00:02:00] length of time, your offers before once sustain time passes, your offer is null and void in the closing date, which is also known as completion. This is the date that the buyer will take vacant possession of his property.
[00:02:15] This date is not all on a weekend or a holiday. Next is a title search and also known as the recommendation date. So this day is typically two to four weeks before closing this time. As a lawyer to confirm the properties, rightful legal owner, and find out if there are any themes or names or anything by the stand against the title, for instance, it could be any existing mortgage or any [00:02:43] preliminary title. If there are any issues.
[00:02:50] And depending on the exact nature of the issue, you can then decide whether you want to work through with the purchase of the property. And you can tell him and try to cause there are sirens going by [00:03:00] and last week there's commission. So this is usually paid by the seller, but a buyer can also be responsible for paying commission in certain situations.
[00:03:09] And I just want to give one situation that I have heard about. So there's a real estate agent that I know, and she was working with. To help them buy a home. So the buyer sent her an MLS listing and said, we love this house. Can we see it? So the agent took a look at the listing and noticed the commission.
[00:03:27] In a detailed and said that some of the commission would be more by the seller and the buyer. So the agent told the bias and said, do you still want to look at the home? Just in case and the buyers at the Vicky about it? They said you know what? We're actually okay to pay commission who would love to see the home long story short.
[00:03:45] They saw the house, loved it. We're fine with paying the commission and they got the house.
[00:03:53] That's awesome. Melody. Thanks for the great example. It's so important for buyers and sellers to [00:04:00] be aware of the irrevocable time. I have done more than one offer in one day on different homes. And you can do this to a lot of buyers and sellers, even after going through the process, you could say, you know, what, how long has your offer good for a lot of people are going to say, I don't know.
[00:04:17] It's something very, very, very important that you need to pay attention to the era vocals. Is right at the top of the agreement. Devor, can you explain a little bit about why timelines are so important in real estate? So what happens if I'm offering on two properties? You know, one at noon and then another one at eight o'clock at night.
[00:04:36] What happens if I have an offer that's been accepted after that irrevocable?
[00:04:40] Davor: [00:04:40] Well, yeah, it's a, it's the simplest way to explain this is well because timing is everything. Once the row of your book, if your book time passes the offer is null and void. So, I mean, this is a legal matter. There's a time limit that the offer is [00:05:00] valid for once you pass out, even by a minute you cannot, I mean, you can except your heart for at that time, it will still be another voice or another offer will have to be.
[00:05:09] Drawn up and presented if the buyer sold fuses and then by the same, by the same logic, if you look at the conditions. Once the opera had been accepted and the conditions within the offer there is a timeline for those conditions to be fulfilled. We're talking about the conditioned press to that sort of, for example, home inspection financing and that kind of stuff.
[00:05:31] So in a condition precedent, what happens is you have to notify the seller agent that those conditions have been fulfilled. So the, so the offer can prove, so the, so the contract can proceed to close otherwise. If, if those conditions haven't been fulfilled, then the offer again is not avoiding and your buyer tends to get their deposit back.
[00:05:54] Now there's condition stuff to Quinn, which is the opposite of that, which if you notify them [00:06:00] by the closing date and within the timeframe, then the offer is now to avoid. If you don't notify them, the offer is going to proceed. And closed at the scheduled time. So the timing is everything and the wording of the contract is everything.
[00:06:12] Therefore having a trained professional at your side hide really, really crucial. The situation though.
[00:06:23] Elyse: [00:06:23] Awesome. Thanks, Dav. That's great. Yeah. Timelines are everything in real estate. If we accept that offer after the year's vocal time, you don't have an offer to accept any more. So thanks, Dav. That's great.
[00:06:36] Mike, we're going to kind of go back to what I talked to and talk to you guys about at the beginning about that story that was in the news. So you have it, you have offer day, you have about eight offers. Come in. You're the listing agent. You have eight people who just have to have that house. Some offers are just within a hundred dollars of one another, some have bigger deposits, some have a better closing date.
[00:06:58] How do you deal with [00:07:00] these? Can you let other agents know how close the offers are in hopes of getting a higher price for your client?
[00:07:07] Mike: [00:07:07] Well, Elise, thank you for giving me the very controversial question. And I say that I say that the panel is laughing because they know with all the multiple offers and bids that are happening.
[00:07:18] I mean, this has been a real struggle for a lot of buyers out there in the agents that of course, are representing them. The listing agent Elise can, and quite frankly, has to disclose how many offers are putting in their homes. Anyone that goes through basically a viewing of that house. If offers are then presented needs to be aware of that.
[00:07:39] But what they can't do is they can't disclose the amount of those offers. That is an absolute, no way, no-fly zone, and agents have to protect their client's best interest in which we're bound. As you guys know. By many, you know, many, many rules. And imagine [00:08:00] if you were allowed to disclose, or you found out at least as an example that you know, a bid was won and one of the agents knew what the amount was, they outbid by $1 and they ended up winning the house.
[00:08:12] And you weren't aware of what that dollar amount was. Not kosher for sure. And you didn't have, you know, some very upset buyers in DME and quite frankly, I mean, that's a rule that you know, the Ricoh and reload would, would be certainly diving into.
[00:08:27] Davor: [00:08:27] Yeah. I think Rico will be very upset about that.
[00:08:32] And, and, you know, our, our licenses would be if we were representing, you know, that, that client ultimately the seller our licenses would be in question and that's you know, it's something that we all have to be aware of. You know, in these instances mean many agents will ask for one offer and your best offer to put forward first.
[00:08:54] And you've been in those situations at least, but you've also been in situations as we all have. We're [00:09:00] ultimately, you know, it's, it's a close-run and you're allowed to come back with a second offer and, you know, picture yourself as a buyer. I mean, this it's, it's a pretty challenging spot to be in. How high do you go?
[00:09:13] You know, you really want that house. You know, at the end of the day, You have to stay within your means. And that's what we guide our Clarence clients for. I mean, if we have buyers, we tell them you need to stay within what your numbers are and you need to feel good about that and walk away feeling good about it.
[00:09:30] And we all know if it isn't that house, it's going to be another house. And that's the thing to keep in mind. I got one more fun fact to share with you. At least I think we're all aware of this, but I don't know if everybody is tuning in. In New Zealand, they have a different approach to how they, you know, kind of avoid these bidding wars.
[00:09:50] It's an open auction. That's how they handle it. And it's the only place that I know of right now, but I mean, there have been lots of talks. Might that [00:10:00] become an industry standard elsewhere? You know what an auction is like come in and they post the home up and people bid and outbid, each other, everybody knows what they're bidding and the highest-paid takes it all.
[00:10:12] So it helps with the transparency of the whole thing. Yeah. And it's Australia does this, that they've been doing that that's the way they do. They sell and buy real estate for four years? I think a marketplace did an episode on that. They went into Australia and, and film. And compared to how things were done here, which is more, more or less behind closed doors.
[00:10:35] But I, I, sorry to interrupt, Mike, I just wanted to add to the. Did the disclosure during the bidding process, there are multiple offer situations that the other salary agent needs to disclose. If there are any beds from within his brokerage, because that's multiple offers, sorry, that's a multiple representation.
[00:10:52] Also, if any other agent is offering a discount or rebates on their commission, because that gives them a, [00:11:00] that's not disclosed to everybody else that gives them the upper hand as well. So, I mean, there's a lot going on when it comes to disclosure, there's a lot of procedures. And we do have to follow it in order for it to remain transparent and remain legit and above board and you know work out for everybody, hopefully for our clients.
[00:11:23] Mike: [00:11:23] Yeah, no, no. That's great. These rules and regulations are put in place to keep everybody safe and to keep everybody happy. We have to, my broker of record always says, you know, we're leveling the playing field. So if you have people that have shown that. You have an offer, come in, you're accepting bully offers or preemptive offers.
[00:11:42] Elyse: [00:11:42] You have to let everybody know. And that just makes the playing field level. I took a couple to see a house on the weekend and, you know, they weren't sure if they wanted to offer on it or not. And they said, don't worry now that you know my email's in there and that we've seen the process. If an offer comes in, we have to be notified and then I'll notify you.
[00:11:59] So [00:12:00] Rico and rebar. I mean, they do their best to, you know, keep it fair for everybody. And, and we have to be up to date on all the rules and the regulations, and it is drilled into us when we go to school and, you know, it's so important for us to relay that information to you. So. Is there anyone, anyone else who doesn't have anything else to add?
[00:12:17] That's it for today's episode, we hope that we gave you some useful information. If you're thinking about buying or selling, you have any questions, reach out to any one of us and we'd be happy to help you. Thanks, guys. Thanks, guys. All right.