Welcome to our Open House!

When real estate agents host an open house, the ultimate goal is to sell the home. The agent who is hosting the open house is representing the seller, has already spent time and money making the property show its best and anyone who walks through the door needs to understand, the agent will be asking you questions.

If you are only looking for decorating ideas or you are already under a Buyer's Brokerage Agreement, let the hosting real estate agent know as soon as you walk through the door. We have Rules, Regulations and a code of Ethics, whereof, we are not allowed to interfere with other REALTORS® Clients. However, if you are not currently working with an agent, REALTORS® are always looking for new business and will be able to answer questions you may have.

If you are interested in the property, anything you tell the hosting agent may be disclosed to the sellers. In the event, you write an offer on this property, information can be used against you in negotiations. It is our job to work in the best interest of our clients which would include informing the sellers of all interested parties.

Real Estate Agents are also responsible for ensuring the proper care of the home while showing. If you have children, please hold their hands and don't be offended if the REALTOR® is following you everywhere.

If you are just starting your new home search and would like representative to help you through the buying process (for free), contact us. If you are like most home buyers today and want to do more research on buying a home in Edmonton, be sure to check out all of our home buying blogs.

Buying a Condominium in Edmonton?

When deciding between purchasing a single-family house or a condominium, one of the largest factors is the price. Currently, in Edmonton, there is a surplus of condominiums for sale and are a great real estate investment whether you are a first-time buyer or are looking for residual income as a rental property.

Purchasing a condominium comes with both perks and downfalls, especially if you are not familiar with the history of the complex. When you buy a condo, you are buying a share in the complex, similar to other investments, you will own a portion of the common area - both capital gains and loses. If you are familiar with what you need to know before purchasing an Edmonton condominium, you are leaps ahead. The first thing you need to know is your money (condominium fees) will be spent.

Condominium Bylaws

The bylaws may also play a key part in purchasing a condominium. Bylaws overall are pretty standard, but read them anyway or take them to your lawyer to read. There may be items in there which can be important to a buyer which may have been overlooked. A few examples are: No pets allowed, Extra costs occurred as a rental property, or no bar-b-ques allowed on a balcony. If you have any concerns with the bylaws, feel free to contact the management companies and ask questions.

Condominium Fees

Depending on the type of condominium you are purchasing, will depend on what the condo fees cover. Sometimes these fees only cover exterior maintenance. Complexes with more amenities such as exercise rooms and pools will always have higher fees due to the maintenance cost of purchasing a condo with several units is, in the event, there is a special assessment on the building, the cost is shared by a larger number of people.

Reserve Fund Study

A Reserve Fund Study is one of the most important documents. With every condominium complex in Alberta, it is now mandatory to have a new Reserve Fund Study completed every five years (New condos are exempt until they are five years). The reserve fund study is a physical study completed on the building and indicates any foreseen structural issues with the building. It is laid out in the same manner as any business plan with predictions of structural deficiencies and repairs and how they will affect condo fees.

Condominium Documents

There are several documents to review prior to purchasing a condo in Edmonton Alberta. Like any investments, it is extremely important to view the financials of the complex. Below is a list which you should add as a "Satisfactory Review" condition to your purchase to offer.

• a statement setting out the amount of any contributions due and payable in respect of the unit
• the particulars of:
• i. any action commenced against the corporation and served on the corporation
• ii. any unsatisfied judgment or order for which the corporation is liable
• iii. any written demand made on the corporation for an amount in excess of $5,000 that, if not met, may result in any action being brought against the corporation
• the particulars of, or a copy of, any subsisting management agreement
• the particulars of, or a copy of, any subsisting recreational agreement
• the particulars of any post-tensioned cables located anywhere on or within the property that is included in the condominium plan
• a copy of the budget of the corporation
• a copy of the most recent financial statements, if any, of the corporation, including the most recent year-end and month-end statements
• a copy of the bylaws of the corporation
• a copy of the most recent approved and most recent draft minutes of the annual general meeting
• a copy of the minutes and draft minutes of meetings of the board of directors of the corporation for not less than the past 12 months
• a statement setting out the amount of the capital replacement reserve fund
• a copy of the reserve fund report
• a copy of the reserve fund plan
• a statement setting out the amount of the monthly contribution (commonly referred to as condominium fee) and the basis on which that amount was determined
• a statement setting out any structural deficiencies that the corporation has knowledge of, at the time of the request, in any of the buildings that are included in the condominium plan
• a copy of any lease agreement or exclusive use agreement with respect to the possession of a portion of the common property, including a parking stall or storage space
• a copy of the registered condominium plan
• a copy of the condominium additional plan sheet certificate (CADS)
• a copy of the insurance certificate
• the amount of any homeowner association fee
• a copy of any proposed special resolution awaiting a vote
• a copy of any easement, covenants and restrictions (ECR) agreement
• a copy of any other building or site report such as a building assessment report, building envelope report, geotechnical report, technical audit, performance audit
• any other relevant information
• If the condominium is a bareland condo, you will also need a real property report.

We know that buying a condo in Edmonton is a bit more complicated than purchasing a single-family home, that is why, here at RE/MAX, we want you to feel confident with the ins and outs of buying a condo. Never hesitate to call us at 780-237-7074 if you have any questions or concerns during your buying process we are here to help.

How to get Mortgage Pre-Approvals

Depending on who you have chosen, for your Edmonton REALTOR®, the brokerage may have several in-house mortgage brokers to help you or you can make an appointment with your current financial institution with a mortgage specialist.

A mortgage pre-approval is the mortgage underwriting approval process, which consists of gathering all necessary paperwork, prior to house shopping. This paperwork will consist of the last two years of your T4's or last 3 years if you are self-employed, most recent paystub, confirmation of downpayment and closing costs, all debts including support payments, charge card debts and vehicle payments, other income, and any other relevant documentation.

Once all of the paperwork is gathered, it is sent to the underwriter who will review it, check your credit and take into consideration any other factors which will affect your debt ratios.

REAL ESTATE TIP: When you have completed your pre-approval process, this does not guarantee you will be approved for your home. If anything changes or if a "surprises" arrives prior to possession of your new home, your financial institution can still pull your mortgage approval.

If you are putting less than 20% down you will need to pay a CHMC Fee. This is an insurance fee for your financial institution and can be rolled into your mortgage. Rule of thumb. The higher your down payment, the lower the CHMC Fee.

If your credit is border-line, it is great to have a mortgage broker who has personally met you and is willing to vouch for you to the underwriter if needed. All mortgage lenders have, at least internally, a turn time." That is simply the time from submission to underwriter review and their decision. The turn time can be affected by a number of factors big and small. However, if you go to a big bank you can expect a more lengthy approval process and may not make your condition deadline. It is what they do. Let your agent know whether you are using a mortgage broker or someone at your financial institution.

Once the underwriter has had time to review the documents, they will typically issue one of three dispositions - approved, denied or suspended - to your application. If approved underwriting will typically assign a set of conditions you will need to clear to obtain full approval. Clarification on a late payment, a large deposit, past life transgression or simply a missed signature here or there is normal requests. If suspended, which is not completely unusual, underwriting is confused and needs clarification on something.

REAL ESTATE TIP: Once you have approval from your bank, ask them to send you and your real estate agent something in writing.

Alberta REALTOR® Fiduciary Duties

Real Estate Agents in the province of Alberta who are in an agency capacity for buyer or seller clients have duties mandated by the legal system called fiduciary duties. The position of the REALTOR® is a fiduciary capacity, acting in the best interests of the client.

• Obedience: Your real estate agent must obey your instructions as long as it is legal and in accordance with your brokerage agreement.
• Loyalty: Your real estate agent must be loyal and keep your best interests ahead of those of any other party, including themselves.
• Disclosure: In the province of Alberta, the law requires real estate agents, whether in an "agency" capacity or not, to disclose material facts to their client. Material facts are those that, if known by the buyer or seller, might have caused them to change their purchase or sale actions. In a signed agency agreement, your real estate agent must disclose more than the material facts. They must disclose all known or suspected information regarding the purchase of the property.
• Confidentiality: A real estate agents fiduciary duty of confidentiality means that nothing learned about you can be disclosed including your business, financial, personal affairs or motivations. This confidentiality fiduciary duty must be maintained for eternity.
• Accounting: Your real estate agent is accountable for all documents and funds in the transaction. Accurate reporting of the whereabouts of all monies pertaining to the transaction and the ultimate disposition. All documents are to be kept for at least six years.
• Reasonable Care: The words "reasonable care" are only finally fully defined in many cases by a judge or jury when it's too late to change your actions. Most Edmonton Real Estate Agents, as a rule of thumb, go by the ethics code "What we know, you know" when acting in an agency relationship.

Whether you work with a REALTOR® in Edmonton under a "customer status" or a "client status with a buyer brokerage agreement", before signing any paperwork including writing an offer, it is a regulatory requirement to present and discuss our Consumer Relationship Guide with you which includes the real estate agency relationship you have chosen to work under.

Are You Paying too Much for Your Property?

Before you offer any seller a price for a property, there are a few facts you should know. The asking price or the city assessment of a property does not necessarily reflect the "market value" of the home. Below are a few questions you should check into prior to making an offer.

Is the property tax assessment accurate? If not, find out why

For the city of Edmonton, you can find out the tax assessment value of any residential property at https://maps.edmonton.ca/map.aspx. Although the amount the city thinks the property is worth does not necessarily reflect the true value. It is only used as a starting point.

Are real estate prices going up or coming down?

What is the latest real estate trend in that community? To determine if Edmonton community property values are going down or to tell if it is becoming one of Edmonton's hot spots, use the absorption rate tool.

How much was the bank property appraisal?

Financial institutions base their appraisals on the "Emily System", which is an accumulation of recently sold comparable properties. If there are no relevant sold Edmonton properties or if your home is more unique, independent appraisers can do a "cost to replace" appraisal.

Ask your REALTOR® to complete a CMA for you before you make the offer?

A good agent will complete a "Sold Comparative Market Analysis" (CMA) for you, prior to submitting an offer to purchase. This will let both you and your agent know what nearby properties have recently sold and for what price.

Is the property staged to avoid any defects?

Don't be fooled by the staging in a property. This is one of the biggest mistakes a buyer can make. When viewing a home, overlooking the nice furniture and freshly painted walls. Take a close look at the overall condition of the property. An easy way to know if a dwelling is shifting is to open and close the windows and doors.

Do you know what a realistic offer should look like?

No matter if you are buying a home in Edmonton in a buyers market or a seller's market. Submitting a realistic offer is important. When a home is priced accordingly to the real estate market, don't try to "low ball" the seller, you will end up paying more because you have insulted them. Do your research.

For more information on submitting in Edmonton and find an experienced buyer's agent, contact an Edmonton Remax Agent.

Should I get title insurance in place of a the real property report?

If possible, it is best to have a current real property report with compliance when buying or selling a home to ensure all property buildings are within the municipality guidelines. If an RPR is not an option, title insurance is a good substitute.

Title insurance without a real property report and compliance is acceptable to most major mortgage lenders and will often provide coverage for the lender for known defects. Unlike other insurance products, there is only one premium paid at the time of closing which provides coverage to the owner throughout their ownership of the property. It also offers a wide range of protection for issues that are not covered by an RPR and compliance.

Title Insurance Benefits include

• Intervening registrations – Anything registered on the title between the time the lawyer submits to the Land Titles Office and the time of actual registration.
• Unknown Liens, encumbrances, tax arrears or defects in the title to a property.
• Unknown special assessments on condos that were implemented prior to closing.
• If an RPR or compliance is not obtained, it covers any defects that would have been revealed by an accurate up-to-date RPR and compliance.
• The forced removal of an existing structure with the exception of a boundary wall or fence where there is only limited coverage
• Forced compliance with work orders or deficiencies on an existing building permit.
• Loss of priority due to matters such as construction liens, agreements on a title, and other mortgages.
• Another party claims an interest in the property.
• Protection against title defects or encumbrances that were unknown or undiscovered at the time of closing.
• Protection against identity theft, mortgage fraud, and fraud against the title.
• Cost savings. Typically, the cost for title insurance is far less than the cost of an RPR and compliance and is available on short notice

Drawbacks of Title Insurance

• It is an insurance product. This means when an issue arises, it may not be covered by the policy and if there is coverage the insurer can decide the method used to solve the issue which may not be the preferred choice of the insured party.
• There is a lack of disclosure and certainty, especially for the buyer, at the time of closing. If an issue is discovered later, it is more difficult to pursue the seller for a fix after closing.
• There is no coverage for known defects, except for some coverage for the lender only.
• There must be some form of enforcement or government action to trigger coverage in most cases. For example, the previous owner did renovations that do not meet the requirements of the building permit or development permit. The title insurance will only pay for the cost to fix these deficiencies if there is some form of enforcement and not simply due to the deficiencies.
• It does not guarantee that all structures will remain in the current state. For example, if the municipality mandates the alteration or destruction of a certain structure, the title insurance company may pay for the cost of appealing that decision however they cannot guarantee a favourable result.
• The coverage of title insurance is for the buyer only (not the seller).
• If a buyer or their lawyer purchases a lender only policy that is sufficient to close the deal however the buyer still has no title insurance protection.
• There is no specific protection or coverage for the seller. If a claim is made and the title insurance company determines it is the seller who created the deficiency, the title insurance company can pursue the seller for recovery of the costs they have paid.
• In most instances, title insurance only defers the need to deal with a particular issue. It does not solve it. The issues will still be there when the property is resold.
• Title insurance cannot be passed onto a new owner. Every new owner must purchase their own policy.

For more information on real property reports and the effects on the resale of your residential dwellings and a free Edmonton Home Evaluation,  contact one of Remax Elite Realtors.