You have to put together a team of professionals to insure optimum success in your condo buying journey.

There are a few professionals (team mates) without whom buying a condo is far more hazardous. For example, by far the greater majority of buyers today need a mortgage, so you will have to find a mortgage lender. These come in the form of mortgage brokers or major banks (many times mortgage brokers work for these banks and other financiers).

Many lawyers instruct their clients to have a “condition” inserted that requires them (the lawyer) to review the Offer before submitting to the seller’s agent. As a Realtor I fully support each buyer having professional legal council, yet when they introduce the lawyer, far too many of them feel compelled to introduce changes into the verbiage of the Offer when in fact, in resale condos the clauses are standard. Some lawyers feel that they must change something (anything) or it will be difficult to cost-justify their fees. A lawyer who is a team player is a definite asset in the buying process providing he/she is not requiring additional “conditions” (like them looking at the offer). When buying resale in a competitive market like Toronto, the goal is to have as few conditions within your offer as possible.

If you are looking for an urban condo your ‘cousin Debbie’ who just got her real estate license north of the city is not the right real estate representative for you. Absurd as it sounds, I have occasionally seen this situation evolve. Best to just give Debbie some cash and have a professional find and negotiate the purchase of your downtown condo.

1. Realtor Condo Specialist

A knowledgeable professional Realtor will save you time, energy, trouble and money.

As a Buyer, you can deal with the Vendor’s real estate agent or you can enlist one to work on your behalf. At present there is no charge to you as Buyer’s Agents are compensated out of commissions charged by the seller’s real estate agent to the seller.

Real estate agents can work with the seller’s agent as a “co-operating” Realtor or for the buyer under a Buyer’s Agency Agreement. Under law all Realtors MUST disclose this to you before even arranging a viewing. Make sure you are clear on who is paying the real estate agent and that you understand your obligations once you have signed an agreement.

There are a lot of issues around “agency” so be sure to have this thoroughly explained to you distinguishing exactly who the Realtor is representing and confirming that his/her fees are coming from the other Realtor.

As a Buyer you want to retain an Exclusive Buyer’s Agent (note the emphasis on Exclusive). Any Realtor, no matter how credible, will lean toward influencing your ultimate decision toward his/her own “Listings”.

The LAST thing you want is ANY Realtor trying to influence your decisions. I personally do NOT LIST properties and therefore have no vested interest in ANY property that I may show my “client” (the Buyer). This is an absolute necessity when you are selecting your Buyer’s Agent. A simple question right up front such as “Do you LIST condos for sale?” will put you on a good footing.

2. Developers

When purchasing a presale condo, the historic adage: “the most important three things in real estate are location, location, location” simply does not stand. With condos it is: “developer, developer, developer”! Don’t get me wrong, location is important but a poorly built community (your condo is locked into a vertical community) in a great location is simply a bad deal!

Only a knowledgeable Realtor with actual first hand experience can accommodate you here as all developments are undertaken under a specific incorporation (usually the name of the development inc.) and therefore it remains almost impossible to do any meaningful due diligence.

3. Lawyer

Not all lawyers are equal as only some are real estate lawyers and then only some of them specialize in condos. With a cumbersome and labourous Condo Act that frequently changes (most recently only a year ago) within a fast moving condo industry it is absolutely imperative that you use a lawyer who does lots of condos and can show you that he/she has done a bunch of them recently. Ontario has a Law Referral Service.

4. Lender

Quite frankly, shopping around is usually the key to finding a mortgage lender. Many different institutions lend money for mortgages including banks, credit unions, trust companies, pension funds, Caisse Populaires, insurance companies and finance companies.

You will even be able to locate private lenders in the local newspapers. It is usually good advice to recommend that you speak with more than one lender whichever category because terms, options & conditions will vary with each.

Some lenders, such as credit unions, deal only with their own membership.

5. Mortgage Brokers

Mortgage Brokers don’t lend money for mortgages, rather they put you in touch with those who do.

Mortgage Brokers are aware of private lenders that you may not be able to find on your own.

Mortgage Brokers are independent business people which means that they are not affiliated or obligated to any specific lending institutions and they will “shop” around for you for the most competitive rates.

In some cases, the mortgage broker will charge you a fee for their services. This charge may be more likely if you have a poor credit history and will probably be a small percentage of the value of the mortgage. But in most instances, the broker’s fees are paid by the lender.

6. Insurance Brokers

An insurance broker can provide you with all your insurance needs, including property insurance and mortgage life insurance. Lenders insist on property insurance because your property is their security for your loan. Property insurance covers the replacement cost of your home, so premiums vary depending on your home’s worth.

Your lender may also suggest that you buy mortgage life insurance. This is often available through your lender, who then simply adds the premium to your regular mortgage payments.

Watch out, lender-supplied insurance is usually more expensive than from an insurance broker. Don’t confuse property or life insurance with mortgage loan insurance which is mandatory for high-ratio mortgages.

ASSEMBLE YOUR TEAM

USING THESE WORKSHEETS

ROLE: - - - Buyer’s Agent - - -

Name: - - - Charles L. Hanes - - -

Company: - - Sutton Granite Hill Realty Inc. - -

Address: - - - 2010 Yonge St. Suite 200, Toronto - -

Telephone: - - - (416) 485-2010 - - -

Referral: ______________________________

Fees: $ 0.00

Email: - - - simplycondos@gmail.com - - -

Comments: ____________________________

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