First you will need to have a written pre-approved mortgage from your Bank or Mortgage Broker.
Once you have found the right Vancouver home or investment condo you will then write an offer on a standard Contract of Purchase and Sale which may or may not contain subject to clauses, depending on whether or not it is a Buyers or Sellers market.
Contract of Purchase and Sale
The contract will contain the Buyer and Seller's name and address, the address of the property, the legal description, the purchase price, the Closing and Possession Dates, items that are included in the purchase (appliances, window coverings, light fixtures, etc.),amount of Buyer's deposit, the date and time the offer expires which can be changed if all parties are in agreement and the terms and conditions of the offer which include finalization of the mortgage, a building inspection, review of the strata docuements including a Depreciation Report, Engineers Report, minutes of the strata meetings for the last 24 months, copy of the strata plan, Property Disclosure Statement, copy of the title search.
Seller's Response - usually occurs within 24 hours and can be extended if both parties are in agreement. Depending on market conditions, the Seller may accept your offer, counter it or reject it. If you are in a multiple offer situation you usually have one chance to make your best offer and the Seller usually accepts the highest bid. In this case you will need to do your due diligence prior to offer presentation and make a non subject offer - discuss this with your bank
Subject Removal Date - usually five business days
Depsoit - must be a minimum of 5% of the purchase price, by way of a bank draft and is due on or before subject removal date. If the offer has no subject clauses, then it can be due within 24 hours of acceptance of the offer
After the Sale - after your offer is accepted and subject clauses are removed, you then have a firm and binding agreement between Buyer and Seller. At this point your Notary or Lawyer will request a copy of the contract and ensures that the title is free and clear of all financial encumbrances, arranges for your mortgage to be drawn from your bank and forwards the proceeds of the sale to the sellers lawyer on closing date. They will also ensure the seller is current with their property taxes, maintenance fees and any special levies.
Closing Date - your downpayment is forwarded to your NP/lawyer prior to this date. The property title is transferred into your name and registered in the BC Land Titles Office.
Possession Date - this is the day that you can take possession of your new home. Your Realtor will deliver keys to you.
Home Insurance - you will need to purchase this and make it effective on the Closing Date. If you purchase a condo you wil need third party liability.