Buying With Furlani

BUYER’S GUIDE

YOUR GUIDE TO BUY

TABLE OF CONTENTS

ABOUT US

With 13+ years of combined experience supporting over $500 million in sales volume, we bring a wealth of knowledge & experience in real estate & a passion for the vibrant urban lifestyle Toronto offers.

We come from families with strong backgrounds in real estate, hospitality & entrepreneurship. We are keeping this spirit alive in our own family business, Furlani Real Estate.

Our level of marketing, service & knowledge will achieve the best results for you and give you peace of mind with one of the largest investments of your life.

CONNIE

Born and raised in the Toronto real estate industry, Connie brings 10+ years of professional experience on one of the city’s top teams*

She has seen everything, has thorough knowledge of market trends, and can confidently guide you through the selling and buying process.

A reputation built on quality advice and a client-first approach, Connie loves helping people and building long-term relationships.

Connie received a degree in journalism & communications from Old Dominion University in Virginia where she earned a division 1 golf scholarship. She brings this competitive spirit and work ethic into her real estate career.

ANTONIE

Antonie’s unique blend of technical capabilities, caring disposition, and strong communication make him an invaluable asset to Furlani Real Estate. A relationship builder at heart, Antonie is a passionate advisor that enjoys helping his clients live better lives.

Antonie’s formal education includes a BA in Honors Business Administration (HBA) and a BA (Honors) in Economics from the Ivey Business School and Western University.

Upon graduation, Antonie worked in Business Valuations at Deloitte Canada, followed by working on the Origination team of DIF Capital Partners, an independent fund manager specializing in Infrastructure.

After working closely with one of Toronto’s best luxury brokers, Antonie is excited to lead the growth and development of Furlani Real Estate.

*Top 15 by sales volume in 2021 according to IMS Inc.

THE PERFECT HOME

Acquiring the perfect home is a process. This guide is about understanding that process and placing oneself in the most favourable position possible.

STEP ONE CHOOSE YOUR REAL ESTATE TEAM

You will need a team of professionals to support you throughout the process.

1. The Listing Brokerage/Salesperson: works with the seller to market a home

2. The Selling or Cooperating Brokerage/Salesperson: works with the buyer to help locate the right home.

3. Lender: reviews and provides mortgage loans.

4. Appraiser: lets the lender know their evaluation estimate of the property.

5. Inspectors: provides basic inspections such as a building, pest and/or environmental inspections.

6. Lawyer: handles the paperwork, transfers the home ownership and ensures a good property title.

7. Insurance Broker: provides the required insurance.

8. Home Security Specialist: provides burglar alarms, as well as freezing temperature alerts and flood alerts.

STEP TWO CHOOSING A REAL ESTATE AGENT

You can choose the right advisor to help with home buying by interviewing, seeking referrals, and researching prospective salespeople. Since you only work with one agent, it should be someone you like, trust, and respect and who feels the same about you.

STEP THREE

UNDERSTANDING AGENCY RELATIONSHIPS

Your salesperson is called the Selling Agent or Cooperating Salesperson and will work on your behalf. Buyer Brokerage Agreements detail any responsibility for payment, but they are usually paid by the seller. Representation agreements are now required by law in Ontario.

STEP FOUR

FINANCING, BUDGETING AND MORTGAGES

Request Your Credit Report

Credit reports show your credit history. Request a free copy of your report from Equifax and/or Trans Union Canada to be sure they are accurate and challenge any errors.

www.consumer.equifax.ca

www.transunion.ca

Pre-Qualification

Pre-qualification is the lender’s estimate of your borrowing power determined by your application, credit history, income and debts.

Pre-Approval

Pre-approval formalizes the estimate and concludes with a letter or certificate of commitment from a lender that confirms approval for a specified amount at specified terms.

Total Down Payment

This is the amount of money you have to invest in a down payment and closing costs. If you already own a home, your equity can be added to this total. You can determine an estimation by talking with your lawyer or financial advisor.

STEP FIVE HOUSING STYLES

Toronto’s housing stock is diverse and gives home buyers limitless options. Most neighbourhoods offer a variety of housing styles such as single-family homes and condominiums, as well as a choice between existing, new construction, or renovated homes. If green features are important to you, a Sage Real Estate Agent can help you find a housing option that fits your needs.

STEP SIX

FIND YOUR HOME

Creating a Wish List

Home purchases require some compromise, which is why you must prioritize your needs and wants before beginning your search. Share your wish list and your price range with your salesperson so they can find properties that fulfill your requirements. Keep your Sage Real Estate Sales Representative advised of any changes to your requirements.

Look at Everything

All listed homes can be shown by your Sage Real Estate Sales Representative. As you inspect various homes, narrow your search to specific parameters and assess alternative housing styles, configurations and conditions. Discuss your impressions and reactions to properties with your agent in a frank and direct manner.

Using the Internet

If you’re searching for a home in Toronto, the best site is SageRealEstate.ca, Toronto’s ultimate home search. Sign up to customize and manage your search, receive e-mail updates of new listings as they become available, conduct several searches at once, and save properties you wish to see.

Realm is Toronto Real Estate Board’s home search tool. Search the MLS ® in real time and find out about new listings through instant notifications. Communicate with your Sage agent by making comments on a listing that get conveyed automatically.

“The Right House”

The goal is to feel comfortable directing your Sage Real Estate Sales Representative to proceed with the purchase of the right property when you see it since timing is critical. There are several offer strategies that can be used.

Sage Advice For Home Buyers

1. Location, location, location: buy into a location that you predict will be equally attractive in the future when you may need to sell.

2. Check out the schools: the school district is important even if you don’t have children.

3. Energy efficient houses save thousands of dollars: if the house isn’t energy efficient now, make certain it becomes so once it’s yours.

4. Trial-run your commute: drive, walk or use “the better way” to get to work during peak periods to see if the commute is bearable.

5. Buy a fixer-upper to increase your equity: tour Sage Real Estate Sales Representative can tell you which renovations reap the greatest returns.

6. Do a self credit check: check for errors on your credit report.

7. Pay off debts and don’t incur more: lenders are more forgiving to borrowers who have recently been making regular on-time payments.

8. Variable vs. fixed: A Mortgage Broker can help you with the pros and cons of a fixed-rate vs. a variable rate mortgage.

9. Buy so you can expand: buy a house that can expand along with your family’s changing needs.

STEP SEVEN

MAKING AN OFFER

Here are the most common elements of an offer:

Price

Price is determined based on comparable listings and sales, and current market conditions.

Mortgage Condition

This stipulates that you will buy the home subject to obtaining a mortgage in a specific time frame.

Home Inspections Condition

A thorough inspection of the property protects you against structural or material problems. The buyer is responsible for hiring and paying the inspector.

Deposit

The deposit secures the contract until the closing and will be applied to the down payment and/or closing costs.

Closing Date

Date when ownership changes hands. Flexibility can give a buyer a big advantage and can occasionally allow you to negotiate more favourable terms.

Counteroffers

There is often a fair amount of negotiation before both parties are satisfied. Your agent’s experience and market knowledge will be invaluable during negotiations.

How to Win

Since only one buyer gets the house, stack the cards in your favour by:

1. Meeting the sellers beforehand to make a good impression.

2. Knowing the market so that you are in a position to bid high without overpaying.

3. Bidding high during the first round. You may not get an opportunity to improve your offer.

4. Offering a huge deposit.

5. Accommodating the seller’s requested possession date or offering a seller-flexible possession date.

6. Asking for few, if any, conditions.

7. Proving your ability to close the transaction.

8. Writing a note about why you want the house.

9. Keeping yourself available when offers are being presented for last-minute negotiations.

10. Having faith and trust in your agent so you can make the most aggressive choice based on their insight.

Bully Offers (Pre-Emptive Offers)

When sellers list a good property in Toronto’s hot market, they may hope to generate a bidding war. When that strategy is employed, they set a date for interested buyers to submit their offers to the seller for consideration. A buyer, however, may ignore the offer date and submit an offer earlier than requested. This is called a Bully Offer.

Bully Offers must be attractive to sellers in terms and price. Buyers making unattractive Bully Offers can easily offend sellers, disadvantaging their subsequent offer on offer night. A good agent can review the appropriateness of Bully Offer submissions in each situation to determine if it is a good idea.

THE ROLE OF A LAWYER

The buying process involves many legalities, so be sure to use a lawyer with real estate experience. Although most transactions close without any problems, an experienced real estate lawyer is invaluable if difficulties arise.

Toronto lawyers typically charge a flat fee for home buyers. Disbursements will be in addition to the quoted fee. Your lawyer will be able to provide you with exact disbursement expenses on your transaction.

What Does a Lawyer Do?

Before the offer:

• Review offer clauses to help buyers understand the legal aspects of the offer.

After the agreement is accepted:

• Detail exact closing costs.

• Search title.

• Search taxes, utilities, building and zoning or order title insurance.

• Execution search.

• Mortgage and other financing arrangements.

• Verify insurance policy documentation.

• Calculate land transfer tax.

• Request resolution of any problems found in searches. A few days before closing:

• Address Provincial Sales Tax issues.

• Prepare mortgage documentation, statement of adjustments, and documentation for land registry.

• Accept closing funds.

• Review & have buyer sign necessary documentation.

Closing day:

• Exchange mortgage documentation for money.

• Meet with the seller’s lawyer.

• Complete final searches.

• Transfer funds.

• Register deed and mortgage in buyer’s name.

• Pay land transfer tax.

• Obtain keys from the seller’s lawyer.

After completion:

• The lawyer will send you a reporting letter certifying your title together with the deed, survey, and all other related documentation.

The insurance requirements associated with home ownership can be complex. This section provides a brief overview of the various types of home-related insurance.

Homeowner’s Insurance

Protects your home against hazards, as well as liability coverage against injury to visitors. Policies can also protect the home’s contents. Your lender requires homeowner’s insurance in an amount at least equal to your mortgage.

Mortgage Life Insurance

The amount of insurance is equal to the principal amount of the mortgage. In the event of the mortgagor’s death, the balance of the mortgage is paid off.

Mortgage Insurance

Canada Mortgage and Housing Corporation (CMHC) insurance protects lenders of high ratio mortgages against default.

Title Insurance

Eliminates the risks of defective property title. A title claim could be very serious. You would have to pay all defense costs, and a claim could result in complete loss of equity if defense were unsuccessful.

We encourage purchasers to buy title insurance because of the cost savings when hiring a lawyer. With title insurance, your lawyer can skip come of the searches. As municipalities increase their search fees, title insurance becomes even more cost-effective.

STEP TEN COMPLETION OF THE TRANSACTION

Shortly before closing, your lender will forward all loan documentation to your lawyer. You will be responsible for bringing the balance of your down payment and closing costs in the form of a certified cheque.

STEP ELEVEN AFTER YOU BUY

Rebuilding Your Savings

Buyers should take time to review and evaluate their finances after a home purchase.

• Set up an automatic electronic payment to avoid penalties for late payments.

• Make a plan for rebuilding your savings account. You’ll need 1–3% of the cost of your home per year for maintenance and repairs.

Refinancing

If interest rates go down, you may be able to save money by refinancing. If you have an Adjustable Rate Mortgage (ARM), you may refinance at the expiration of the initial fixed-rate period if the fixed-rates are substantially lower.

Home Improvement

Your Sage Real Estate agent can help you determine the market value of improvements you are considering making to your home.

ABOUT SAGE

If there is one word that sums up Sage, it’s uncompromising. We set a high bar for ourselves and our agents. Our clients deserve the very best of us, and we’re relentless in making sure they get it.

As a family-run company, we have an unusual combination of deep industry expertise and a fresh, progressive approach. We never stop thinking about how we can improve what we do so that we can deliver more value to our clients and agents.

We monitor, respond and adapt quickly but strategically to help everyone stay ahead of the market. We provide our agents with industry-leading knowledge, training and expertise. They’re supported by our comprehensive marketing systems, in-house creative team, professional graphic designers, and a highly-respected management team.

We insist on the highest standards of integrity in everything we do, hand-selecting agents who believe in doing what’s right and fair for our clients.

GLOSSARY

Adjustable Rate Mortgage (A.R.M.): Mortgage with a rate tied to the prime rate that is variable.

Agency: Relationship a buyer or seller has with their real estate agent.

Agreement of Purchase and Sale (Offer): Legal document that outlines the terms of a real estate deal that will be signed by both the buyer and the seller.

Appraised Value: Amount that a professional appraiser thinks a property is worth.

Canada Mortgage and Housing Corporation (CMHC): Institution which administers the National Housing Act and provides lenders with insurance against high ratio mortgages.

Clear Title: A property with no claims.

Closing Date: Date that the house exchanges hands from the seller to the buyer.

Cloud on Title: When a claim has been made against the title of a property.

Collateral: Tangible asset that is used as a guarantee of payment in a loan.

Common Elements: Parts of a condo building that are owned by all owners of the building.

Condition: Offer clause which outlines what has to happen before the agreement becomes binding.

Condominium: Form of ownership where the owner has the title to a specific unit and a portion of the common elements of a building.

Conventional Mortgage: Mortgage from a traditional lender where the value of the mortgage does not exceed 75% of the value of the property.

Cooperative: Type of ownership wherein the building is owned by a company. To be entitled to live in the building, you must buy shares.

Deed: Document that officially transfers ownership of a property.

Default: When a borrower is not able to make a debt payment.

Deposit: Money that is put down after an offer has been accepted and is held in trust.

Disbursements: Various expenses and costs that a lawyer will pay on behalf of a buyer to close the sale.

Down Payment: Amount that the buyer puts down on the property in cash.

Equity: Value of the property minus any outstanding debt.

Fiduciary Duty: Legal relationship between a buyer or seller and their agent.

Fixed Rate Mortgage: Mortgage that has a fixed amount of interest paid over a specific amount of time.

High Ratio Mortgages: Mortgage that exceeds 75%. These mortgages must be insured by the CMHC.

Hold Back: When money is held back by the lender until a condition is satisfied.

Homeowner’s Insurance: Protects homeowners against damage to their home.

Home Inspection: Objective evaluation of a house by a home inspector.

Irrevocable Period: The period at the end of which an offer expires.

Land Transfer Tax: Tax paid to transfer a property.

Legal Fees: Amount charged by lawyer to execute the purchase or sale of a property.

Lien: Legal claim against real estate to guarantee payment of a debt.

Listing Agreement: Formal agreement between the seller and a real estate brokerage company authorizing a particular piece of real estate for sale.

Listing Broker: The real estate brokerage company that represents the seller.

Lock-in: A buyer tells the lender that they accept a certain interest rate for a certain amount of time.

Maintenance Fee: Fee a condo owner pays each month towards upkeep of the common areas.

Mortgage: An agreement between a lender and borrower where the real estate is collateral for a loan.

Mortgage Broker: A professional who brings together borrowers and lenders.

Mortgage Insurance: Also referred to as mortgage loan insurance or mortgage default insurance, this is offered through CMHC and covers the lender when a borrower has less than 25% down payment.

Mortgage Life Insurance: Covers the mortgage value in the event of the death of the mortgage holder.

Mortgagee: Lender.

Mortgagor: Borrower.

Pre-Approval: A written commitment from a lender to lend a buyer a certain amount of money at specific terms.

Principal: Base amount of money borrowed.

Real Estate Agent (Broker): The brokerage company that represents either a buyer or seller in the process of buying or selling real estate.

Realtor ®: A registered real estate sales representative or broker.

Refinance: When a new mortgage is obtained and used to pay off the old mortgage.

Statement of Adjustments: Amount of money owed at the time of closing.

Selling Broker/Cooperating Broker: The real estate agent who represents the buyer.

Survey: Document that outlines the property line on a piece of real estate as well as the location of any fences, encroachments and buildings on the property.

Term: Amount of time a lender lends funds to a borrower.

Title Insurance: Insurance that assures that the real property remains the property of the buyer if a claim against the property is processed.

Title Search: The process of checking records to ensure the seller has the legal right to sell the property.

Trust Account: Bank account used by brokers to keep protected deposit funds separate from other funds.

Underwriting: Calculation of risk involved for a lender.

Variable Rate Mortgage: Mortgage with fixed payments but where the interest rate is adjusted to market levels.

Warranty: Legally binding commitment to guarantee that the house is in good condition.