What You Need to Know Before Signing on the Dotted Line
Tags: real estate, selling home, newmarket, real estate tips
1 minute read.
It’s no secret that buying a home comes with its fair share of contracts, documents, and legalese to decode. Between the POA, RPC, and BRA, it’s all too easy to become bogged down in the humdrum of acronyms and paperwork during the exciting process of your house hunt.
But, much like opening a new bank account, or purchasing a car, buying a home is an investment that must legally protect all parties involved.
If you’re new to the legal process of purchasing a home, chances are you’re going to come across more than a few of the contracts and acronyms listed above. Since the Knowledge Broker team is founded on honesty and transparency, we thought it would benefit you to explain what a few of these terms and contracts mean.
Buyer Representation Agreement (BRA)
A BRA defines the relationship between the buyer (you) and the real estate brokerage that is working on your behalf. It sets out the property type and geographic location for your potential new home, lists the services to be provided, addresses the issue of the commission that may be payable to the brokerage, and it also specifies the duration of the agreement.
Agreement of Purchase and Sale (APS)
One of the most used real estate contracts is the Agreement of Purchase and Sale, which is between the buyer and seller for the transaction of a property. It covers the entire real estate transaction and includes important provisions, such as price and closing date. Before signing this contract, you should hire a home or real estate property inspector to review damages and other issues with the property. This can affect the purchase price and how much you would be willing to offer in the end.
Power of Attorney (POA)
When you're are unable to sign your own real estate contracts, you'll need to sign a Power of Attorney, a document for someone else to sign on your behalf. You might also be a designated agent under a Power of Attorney, for an elderly parent or relative. Not having one can hold up a real estate transaction, so it's important to take care of it now. Decide who you want to act on your behalf if you should fall ill or suffer some injury that would prevent you from executing agreements.
Need some help decoding your transaction of buying, or selling a home? Give us a shout!
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JOSHUA CAMPBELL (@knowledgebrkr)
Real Estate Broker
Coldwell Banker The Real Estate Centre, Brokerage
249 Avenue Road • Newmarket, ON L3Y 1N8