What is Subject Removal Date?
Subject Clauses or Conditions Precedent are terms for conditions in a Contract of Purchase and Sale that need to be fulfilled, waived or deemed completed by the party the clause is benefited for in order for there to be a firm sale. For example, a Buyer might want to do an inspection or need to get financing finalized. There would be an inspection clause and financing clause in the contract with a subject removal date. If subjects are not removed by this date then the contract is terminated.
What is the Closing Date?
The Closing Date is the date that the title to your new property gets registered into your name and funds are transferred. This date can not be on a Fri-Sun or holiday. This date is often a few days before the Possession and Adjustment Dates to allow for vacating and cleaning of the premises and also to allow for any hiccups that might occur during the closing process.
What is the Possession Date?
Possession Day is the day you get the keys to your new property. Your realtor will do a walkthrough with you to make sure everything is in order.
What is the Adjustment Date?
The Adjustment Date is the date that all the expenses/income will be calculated to. Things like property taxes, strata fees, rental income and so forth. The Adjustment Date is usually the same as the Possession Date.
Who pays the REALTORS®?
In most real estate transactions, the seller pays both the listing realtor and the buyer's realtor. In cases where there is no or little compensation offered to the buyer's realtor (For Sale By Owner), the buyer can pay their agent's commission or instruct the agent to request that the seller pay.
Why do I need a Lawyer/Notary?
A lawyer or notary is needed in a real estate transaction to prepare title transfer documents, transfer funds, calculate adjustments, discharge mortgages, register the title and more.
What is the difference between a lawyer and a notary?
A lawyer can give you legal advice on your real estate transaction whereas a notary public can not. A notary public is cheaper use than a lawyer for closing real estate deals.
Is a down payment and deposit the same?
No, a downpayment is the lump sum of money you will use to put towards your mortgage. The bank or financial institute gets this money.
A deposit is a sum of money used as security so that the buyer will complete the purchase. The deposit is usually due on Subject Removal. The deposit is held in trust by the Buyer Agent's Brokerage. When the purchase completes this money goes towards the downpayment.