Christie's Real Estate Team

Costs and Typical Expenses

There are many costs that homebuyers incur, especially upon purchasing your first home that you should expect to pay. Some of the expenses related to
buying a home
are one-time costs, while others are continuing costs.Your largest cost at the beginning is your down payment. As a first time buyer, this would
likely represent only 5 - 10% of the purchase price. However, you should be prepared to pay for additional costs, such as:

• Legal Fees & Disbursements
• GST and PST (if applicable)
• Property or Land Transfer Tax
• Adjustments (reimbursed to the vendor)
• Interest
• Property Taxes
• Utility Payments
• Strata or Condominium Fees
• Estoppel certificate fee
• Survey Fee
• Home Inspection Fee
• Water quality and quantity certificate
• Appraisal Fee
• Mortgage broker's fee (if applicable)
• Mortgage Loan Insurance Premium (if only 5% down)
• Mortgage Loan Insurance Application Fee (if only 5% down)
• Moving Expenses
• Renovations and repairs
• Furniture, paint, carpeting, window coverings, etc.
• Service and Utility Hook-up Fees
• Property/Condominium Insurance
• Mortgage Application Fee
• Deed and/or Mortgage Registration Fee
Additionally, once you have purchased your home, you will incur regular expenses on a monthly, quarterly or yearly basis. Some of these costs include:
• Mortgage Payment
• Water and/or Sewer Payments
• Electricity and Gas Services

                                                              ASSIGNMENTS
 

Below is a brief explanation & summary of purchasing a property by way of an assignment. It is different from a "typical" real estate transaction. In an assignment purchase you are buying the contract from the original purchaser and do not own the property until the unit is physically ready to be occupied.

Summary of what transpires in an assignment

The original purchaser buys a condo from the Developer in 2006 for $400,000 with a total down payment of 25% ($100,000), completion is scheduled for 2008.

In 2007 the original purchaser (assignor) re-sells or assigns the property to another party (assignee) for a sale price of $500,000.

 To purchase the assignment the new buyer (assignee) must pay the following in order to assume the assignment contract:
 

When the property is ready for occupancy in 2008 the new buyer (assignee) shall complete the sale with the Developer under the same terms and conditions per the original purchase and sale agreement. Please Note: In the event buyer two (assignee) does not complete the said transaction, the developer may go after buyer one (assignor). In this case buyer one should seek Legal Advice.

In 2008 when property is complete and ready to occupy, the following breakdown occurs

Therefore the total cost for the property is $500,000 with $200,000 due immediately (payable to Original Purchaser or assignor) and $300,000 (payable to the Developer) due at completion. Assignment contracts can either complete within 1 month of writing a contract or when the developer finishes the building and the suite is ready for occupancy (it is negotiable). Please discuss this with the Listing Agent.
Please note, the above information is simply a guideline. Any buyer who enters into an assignment contract is highly recommended to seek independent legal advice. Please also take note: A buyer should be qualified by a Mortgage Broker  before writing an assignment contract - these contracts are firm & binding. There can be serious consequences and loses to buyer #2 (assignee) if he cannot complete on the contract.