Before we dive into the following steps, let’s clear the air on a few things.
By this time, we are assuming that you:
- Know what you want and what you can afford.
- May already be pre-approved by your bank or credit union.
- You have decided on the lot you want to call home.
Now it’s time to get into some more of the technical stuff.
Secure financing and sign on the dotted line
Until now, you have been laying the groundwork for the purchase; now it’s time to prove that you’re ready to own a home. Your lender will set out and explain the details of your mortgage, including things like your down payment and interest rate.
Once you agree to the lender’s terms, a 10% deposit is sent to our attorney to be held in escrow until both parties finalise the sale; this can take two or three months.
During this period, the lawyers for both parties do their due diligence to certify that the sale can proceed and that both parties satisfy the legal requirements of the sale. For us, this includes a certificate of compliance issued by the Town and Country Planning Department. The certificate confirms that the roads and services, e.g. access to utilities, satisfy all planning guidelines.
With this done, the balance of the purchase price, or 90%, is paid; this marks the conveyance or transfer of the “Title” from us to you. At this time, we also pay the transfer taxes and stamp duty due to the government.
Pat yourself on the back
Congrats; you are now a landowner.
