What’s The Best Age to Buy a Home in Toronto?

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If you’re a fan of rom-coms like us, you might remember a line from the Amanda Seyfried gem, Letters to Juliet, about how the two words “what” and “if” coming together can haunt you for the rest of your life. We’ve spoken a lot about fear in the market this year and the dangers of putting plans on hold because of those two little words.

We thought we’d explore the worst that could happen in common “what if” real estate scenarios to help set your mind at ease.

What if your closing gets delayed?

The answer is simple. In Ontario, the Agreement of Purchase and Sale (APS) doesn’t allow closing date delays unless both parties agree to a later (or earlier) date. In fact, the closing date is binding right down to the hour, and any deviation from the date stipulated in the agreement is considered a breach of contract. The penalty for a buyer not closing on time in Ontario depends on how much the delay impacts the seller/buyer financially. Here’s what these scenarios can mean for buyers and sellers:

Buyer:

If you’re ready to close, love the home, and have made all the arrangements to move, it usually makes more sense to call your lawyer and offer an extension to give the seller time to sort things out, if possible. You can legally recover costs associated with the extension, such as rent or lost deposits for movers or cleaners, etc.

If you’re unable or unwilling to arrange an extension, you can end the deal, get your deposit back, and recover all costs resulting from the disruption.

If the delay is on your end because of financing issues, such as the late arrival of mortgage instructions or a delay in releasing funds, call your lawyer immediately to see if they can arrange an extension until the funds are available. This could cost you some money if the seller isn’t happy about the extension but at least you’ll get your dream home.

Seller:

If the buyer runs into money trouble, including funds not being released on time, you can choose to terminate the deal, but we’d advise against it. Instead, it’s best to call your lawyer and arrange a formal, signed extension so you can receive your money and avoid having to relist.

If the buyer cannot resolve their financing issues—such as not having a mortgage—you can terminate the agreement and sue not only for the return of your deposit but also for the difference if the eventual sale price is lower than the originally agreed price, legal fees, and any additional carrying costs.

If the delay is on your end, you can call your lawyer to seek an extension, but you may face additional costs to cover expenses your delay causes the new owners.

Do you need some tips on selling a house in a changing market? Look no further than the posts below:

What if your inspection doesn’t turn out great?

Inspections can make or break a real estate deal. Here’s what to do after a bad home inspection for both buyers and sellers:

Buyer:

It’s common to make reasonable requests after home inspections reveal issues, such as a price adjustment to cover repairs or replacements, or a request that the seller complete repairs before closing. In the worst case, the seller rejects your requests, or the issues are so serious that you choose to walk away.

Seller:

In the worst case, the buyer will walk away or request unreasonable price adjustments/conditions. Before you reject those requests, don’t let your emotions get in the way. Speak to your real estate agent to determine whether the inspection findings are likely to affect future offers and explore a deal that works for you without putting the kibosh on the sale. You can also consider taking your home off the market, addressing the issues, and relisting at a better price.

What if your conditions aren’t met or your offer is rejected?

We always recommend a price below your best offer and reasonable conditions to help you get what you want without prompting an outright rejection from the seller. If the seller rejects your initial offer or conditions, you can always revise the offer to make it more enticing.

The worst that can happen? The seller rejects your offer or conditions and declines to negotiate further. Don’t worry, we’ll keep looking to find something better!

Looking for even more buyer insights? Read the following posts next:

What happens if your financing falls through?

We always make our APS conditional on financing. So, if your financing falls through before the agreed-upon deadline, you’ll get your deposit back and walk away without penalties. If you miss the conditional deadline without securing financing, you’re in the same situation described in the section on delayed closings, so always seek pre-approval before you start your home search!

While what ifs can be nerve-wracking, with the right real estate team behind you, you can recover quickly and come out none the worse for wear.

Do you want professional guidance when buying or selling a Toronto house? Get in touch today by calling 416.291.7372 or emailing us at hello@chrisitinecowern.com!