Home Inspection Clause

How to write home inspection clauses when you are buying or selling Real Estate can make a difference between a deal maker or breaker. A typical home inspection clause by a Realtor is usually sufficient for average Home buyer or seller. But if you are sophisticated Real Estate Investor, you need to protect yourself with proper wording.

home inspection clause

  • What is the purpose of inspection clause?
  • Does a home inspection condition give a Home buyer a right to cancel the
    Purchase and sale agreement or the contract any time ?
  • Is the Property owners is entitled to a copy of the home inspection report if they want to share the cost of inspection?
  • If the report shows only minor problems, is the seller entitled to just fix the problems and ask the property buyer to complete the transaction?
  • What happens if the buyer does not obtain a home inspection at all and then tries to get out of the deal?
  • Who can be the home inspector?

In general, the ethics have indicated that when buyers are trying to satisfy any condition, including a home inspection condition, they must act honestly, reasonably and in good faith.

If you are buying then the following home inspection condition shall be in your contract

“This agreement is conditional upon the inspection of the property of the purchaser’s choice and expense, and receipt of a report satisfactory to him, in his sole and absolute discretion within ten banking days failing which this agreement becomes null and void”

Then you are not satisfied with the inspection report, then you can ask for the deposit to be returned without any deductions and sign mutual release at the same time.

As a result, many sellers try to remove the words “sole and absolute discretion” from home inspection condition clauses.

If you are selling and you must insert following wording to protect yourself by  Including additional language that if the amount to correct all deficiencies is less than $1,000, then the seller has the right to correct the deficiencies before closing or within thirty days and have the right to have a copy of inspection report. The inspection must be carried out by licensed or certified home inspector who carries error and omission insurance.

If you are a buyer and any change is made to the home inspection condition clause, you need to review the changes carefully with your Realtor and Real Estate lawyer as your rights might be impacted.

Sellers are not entitled to a copy of the inspection report unless it says so in the clause itself.

If the buyer does not conduct the home inspection at all, or perhaps brings in an
Un qualified person to conduct the inspection, then the buyer must remove this condition in writing within ten banking days as per original contract.

That is why any home inspection condition must be drafted carefully and approved by your Real Estate lawyer before the offer is being presented.

World Wealth Builders offers many unique, practical, out of the box real estate investor apprenticeships which offers the student hands on, in the trenches style instruction to facilitate both a different mindset as well as a successful and lucrative real estate investment business. To find out more, please go to http://www.WorldWealthBuilders.com/live.html
The above information is provided as a guideline and is not intended to give a professional legal advice. Please consult a real estate lawyer for their opinion on your particular case

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Canadian Real Estate Investors Training LIVE

Flip Houses make Instant Cash

New Strategies for Canadian real estate investors

Canadian Real Estate Investors Training LIVE are quite common for Canadian Real Estate Investors. Canadian Real Estate Investors Training teaches how to use  borrowed all the money required to acquire the investment to write off all the interest. Canadian Real Estate Training teach investors how to use other people money, Government grants, rebates and tax credits.Canadian Real Estate Investors Training LIVE

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Healthy Homes Renovation Tax Credit for Seniors

Homes Renovation Tax Credit for Ontario Seniors get $10K Tax Credit for Renovations. Ten thousand dollars in Tax credit will be available for Ontario seniors to renovate and improve accessibility. The bill passed in Ontario government with majority in favor.

It was a promise Premier Dalton McGuinty made a year ago during the last election campaign.  Navtaj Chandhoke, founder of Professional Real Estate Investors Group (PREIG) Canada said, “The tax credit is up to $10,000.00 in eligible home renovations or 15% up to $1,500 each year”

Health Minister Deb Matthews says in a press release.This Healthy home renovation tax credit will also help achieve the goals of our Action Plan for Health Care by keeping our loved ones out of hospitals and long-term care, and at home, where they want to be.

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Whistler Home Owner Grant

Half Price home-ownership in Whistler-BC, Canada

“You can own a house in Whistler at half price provided that you are employed in Whistler, This is a unique program run by the Whistler Housing Authority. They range in size from studio condos to duplexes and single family homes” say Navtaj Chandhoke, founder of Professional Real Estate Investors Group (PREIG) Canada.

whistler home owner grant

“Would-be owners have to be employed in Whistler to buy one. Prices are allowed to increase only a certain amount per year, with the price of most units are tied the consumer price index.”

What are the qualifications for purchasing through the Whistler Housing Authority?

All applicants must be of legal age, Canadian citizens or landed immigrants, must be qualified employees or retirees, and must be pre-approved for a mortgage. Employees must work a minimum average of 20 hours per week within Whistler. A retiree is someone who was employed in Whistler for five of the six years prior to ceasing employment. Applicants or their spouse must not own, either personally, jointly or indirectly through a trust or business assets, any non-restricted real estate in Whistler at the time of the application.

Whistler Home Owner Grant

Half-price home-ownership in Whistler-BC,Canada

whistler home owner grantThe bottom line: the two-bedroom townhouse that could be worth about $500,000 is sold for half that. It’s a strategy that’s allowed local employees with moderate incomes to buy in, but they also don’t get cash in by capitalizing on real market values when it comes to selling their homes.

The program, launched 15 years ago, has been funded by contributions from commercial developers. There are tradeoffs, such as foregoing the chance of striking it rich in real estate. But they make other investments and still get a home in Whistler, surrounded by families who live and work there.

More info at http://www.whistlerhousing.ca/about_wha_ownership.html

What do I need to do to get on the Whistler Housing Authority Purchase Wait list?

If you qualify under the Wait list Guidelines and you have been pre-approved for a mortgage, you can fill out an Purchase Application. This Application is a legal statutory declaration and therefore you need to have it notarized (can be done free of charge at Municipal Hall). As well, we need proof of citizenship or landed immigrant status and proof of employment in Whistler.

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How do I find out which resident restricted units are for sale?

Once you are on our Purchase Wait list, we will contact you when a unit comes available for purchase. Applicants are prioritized on a first-come-first-serve basis.  You can view the Calendar of Open Houses under the Purchase section to see when open houses are scheduled for available units.

How do I find out what price to offer for a unit?

The Whistler Housing Authority calculates the maximum resale price using the covenant formula, and advises vendors and the purchaser of this price. You can also view the Historical Resale’s under the Purchase section to see what other units have recently sold for.

What type of restrictions may apply to the resident restricted units available for purchase?

There are some units that are only occupancy restricted, which are required to be occupied by either a Whistler employee or retiree. There are also units that are both resale and occupancy restricted, which must be occupied by a Whistler employee or retiree and the resale price of the unit is controlled by the Whistler Housing Authority.

Once I buy a resident restricted unit, can I stay on the Purchase Wait list?

Yes, but your name will be moved to the bottom of the wait list when you purchase a unit.

Why is there a resale cap on the resident restricted units?

whistler home owner grant

In order to maintain a stock of more affordable housing in perpetuity for Whistler resident employees and retirees. The object is to start it lower and keep it low. The Whistler Housing Authority calculates a maximum resale value for every resale restricted unit. Depending on the unit, the resale appreciation is either tied to the Royal Bank of Canada prime lending rate, the Greater Vancouver Housing Price Index or the Canadian Core Consumer Price Index. All resale’s and future developments maximum resale value will be tied to Core Consumer Price Index. If the units did not have resale restrictions, they would eventually become the same price as housing in the private market due to demand.

How many resident restricted units exist in Whistler?

As of 2012, there are 862 price restricted ownership units and 232 Whistler Housing Authority managed rental units. In total there are 1,875 units (5662 beds) including owned and rented units, that form Resident Restricted Inventory in Whistler.

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High Ratio Mortgage

A high ratio mortgage is a mortgage in which a borrower places a down payment of less than 20% of the purchase price on a home. Another way of phrasing a high ratio mortgage is one with a loan to value ratio of more than 80%. A mortgage with more than a 20% down payment is called a conventional mortgage.

A high ratio mortgage will require mortgage insurance. Mortgage insurance is usually purchased by the lender through one of Canada’s three default insurers, the Canada Mortgage and Housing Corporation (CMHC), Genworth and Canada Guarantee and the cost of the premium is charged to the buyer as a closing cost, or is financed through the mortgage.

What is Down payment?

The buyer must pay the down payment from his/her own funds or other eligible sources before securing a mortgage. The portion of the home price that is not financed by the mortgage loan.high ratio mortgage

What is Mortgage payment?

A regularly scheduled payment that is often blended to include both principal and interest. This payment can be made weekly, bi weekly or monthly depending upon the bank and what have you negotiated.

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Selling Their Own Home In Canada

selling home canadaPrivate sale is the new concept when it comes to the real estate market, according to new research commissioned by Kijiji Canada. The study revealed that 61 per cent would like to selling your own home in Canada on their own if it was easy and more affordable than using a Realtor. 22 % Canadians who have sold a home in the past have sold a home on their own at least once.

Selling Home Canada

selling home canada

“This research corresponds with what we’re seeing on social media sites when it comes to the for private sale of the properties in Canada,” says  Navtaj Chandhoke, founder of World Wealth Builders, a Canadian Real Estate Investors Training company.” This is getting very common among Canadian Savvy Real Estate investors too”.

According to the new research:

  • Nearly three-quarters (72 per cent) of those who believe decluttering is important didn’t actually purge their home of many items before selling.
  • A large majority (86 per cent) of those who believe conducting renovations is important before selling a home didn’t do any when selling their home.
  • A large majority (86 per cent) believe staging is important, but 61% of those who think it’s important didn’t do it.

Top tips to beautify your digs

The survey also found that the majority (62 per cent) of Canadians are doing minimal maintenance to prepare their home. But when it comes to the sale itself, not everyone feels they are getting a fair price (21 per cent), often because they didn’t take the time.

Following some simple tips to get more:

  1. De-clutter your domicile: De-personalize your home before showing it, and the first step in this process is to de-clutter. Moving is an excellent time to do this anyway, as you really don’t want to be stuck transporting more than you have to. Stop, take stock of what you really use, and get rid of what you don’t need.
  2. First off, fix it: When a potential buyer notices that broken drawer or leaky faucet, you can lose the sale. Correcting minor problems are worth the small investment to help seal the huge deal. The impression of a house in disrepair can jeopardize a sale.
  3. Stand out with staging: The research shows that many Canadians are already savvy stagers, with 33 per cent taking steps to properly prep their property. A few small steps can make all the difference:
    • De-personalize: remove items such as trophies, children’s artwork, and family pictures.
    • Neutralize: What may be appealing to you may not be so appealing to someone else. Allow prospective buyers to envision your home with their preferred colours, artwork, and furniture by keeping things as neutral as possible.
    • Sweat the details: For open houses, it’s important to add a little extra something with things like scented candles, a bowl of fruit, and accent pillows.
  4. Curb appeal It’s really just common sense. This is where you make your first impression. Think of it like a job interview. Closely consider your home’s exterior and make sure bushes are pruned, grass is trimmed, and paint isn’t peeling. You want your home to look cared for and inviting.
  5. Professional inspection: Instead of waiting for a potential buyer to find something wrong, invest in a professional inspection. It’s your best way of finding and fixing deficiencies before a potential buyer discovers them and walks away forever.

Real estate by the numbers

Who’s the savviest at selling their own home? What community has bought and sold the most homes? When it comes to real estate know-how, the survey also reveals interesting differences from coast-to-coast:

  • British Columbians are savvy salespeople. Sellers in BC have sold the most homes on their own than any other province, at 31 per cent. The province also has the highest percentage reporting that they plan to sell within the next year, at 17 per cent.
  • Staging separation. When it comes to self-staging, sellers in Alberta have done in the most at 39 per cent, versus their Saskatchewan neighbors, who self-stage the least at 14 per cent.
  • People who purge. Sellers in Ontario seem to have the least trouble getting rid of items before selling their homes, at 37 per cent, while Quebeckers have the hardest time, at 19 per cent.
  • Who renovates the most in preparation for sale? Sellers in Atlantic Canada appear to be the most adept at 20 per cent.
  • Fair market value for whom? Atlantic Canadians are least happy with what their homes sold for, with 27 per cent of sellers reporting that their home sold for less than market value.

But while the Private sale trend may be trending up, many homeowners may not be prepared to do what it takes to get the best price when going it alone in the real estate market. Important pre-sale steps to take include de-cluttering, renovating, and investing in curb appeal.

selling home canada

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Lease to Own Homes Ontario Canada

Are you tired of lining your landlords pockets, making them rich while you throw your money out the window? If you have a good job, but poor credit, Lease to Own may be your best option. You a home owner sooner than you ever thought possible. If you area already a home owner at risk of losing your property, lease to own may be able to put you back on track.

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Interest Free Mortgage Calgary

Home ownership in Calgary with Interest free Mortgages & Grants

The PEAK Home Ownership Program — which stands for Public, Essential and Key workers — is a joint initiative with Habitat for Humanity, the Government of Alberta and the Trico Charitable Foundation.

“This is very nice program for Calgarians for the first time Home buyers and give them a head start” says Navtaj Chandhoke, founder of Professional Real Estate Investors Group (PREIG) Canada, instead of renting it and not able to built equity as well as take advantage of  appreciation. The carrying cost will be quite similar but pride of ownership has its own rewards”.

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BC First Time New Home Buyers Bonus

BC First-Time New Home Buyers’ $10,000.00 Bonus Tax Free

The BC First-Time New Home Buyers’ Bonus is a one-time bonus payment worth up to $10,000 for first-time new home buyers in BC. The legislation for the BC First-Time New Home Buyers’ Bonus is expected in spring 2012.

“ Finally BC first time buyers would have the opportunity to have their dream release by  owning their dream home instead of  renting it” says Navtaj Chandhoke, founder of Professional Real Estate Investors Group (PREIG) Canada” it can be difficult for lot of Canadian families to save the down payment. This program will assist lot of families in the BC”.

Home Buyers Bonus

BC First-Time New Home Buyers’ Bonus are required to have following qualifications

  • Eligible claimants must be first-time homebuyers – an individual who has never previously owned a primary residence anywhere in the world;
  • For couples, neither the individual nor the spouse or common law partner can have previously owned a primary residence anywhere in the world;
  • The claimant must file a BC resident personal income tax return for 2011 or if the claimant moves to BC after December 31, 2011, must file a 2012 BC resident personal income tax return;
  • Individuals or families who move to BC after December 31, 2012 will not be eligible.

Newly Constructed Homes and Substantially Renovated Homes

  • The bonus is available in respect of new homes located in BC (i.e. newly constructed homes purchased from a builder and substantially renovated homes), on which HST is payable;
  • A substantially renovated home is one where all or substantially all of the interior of a building has been removed or replaced, generally 90% or more of the home must be renovated to qualify;
  • The written agreement of purchase and sale for the home must be entered into on or after February 21, 2012 and before April 1, 2013;
  • Ownership or possession of the home must transfer before April 1, 2013;
  • Eligible new homes include detached houses, semi-detached houses, duplexes, and townhouses, residential condominium units, mobile homes and floating homes and residential units in a cooperative housing corporation.

The BC First-Time New Home Buyers’ Bonus is available in respect of owner-built homes:

  • Where the written agreement of purchase and sale for the land is entered into on or after February 21, 2012 and before April 1, 2013;
  • The bonus will be based on land and construction costs subject to HST;
  • Construction of the home must be complete, or the home must be occupied, before April 1, 2013.

Other Criteria for BC First-Time New Home Buyers’ Bonus

  • The claimant must be eligible for the BC HST New Housing Rebate in order to receive the bonus;
  • The claimant must intend to live in the house as a primary residence;
  • No one else has claimed the bonus in respect of the home.

Bonus Calculation for BC First-Time New Home Buyers’ Bonus

  • The bonus is calculated as 5% of the purchase price (not including HST) of the home up to a maximum of $10,000;
  • The bonus is income tested. For single individuals, the bonus will be phased out at a rate of 20 per cent of net income in excess of $150,000 and eliminated at incomes greater than $200,000. For couples, the bonus will be phased out at a rate of 10 per cent of family net income in excess of $150,000, and eliminated at family incomes greater than $250,000.

You must apply to the BC Ministry of Finance to receive the bonus. The ministry will process applications, determine eligibility, and issue the bonus payments. The bonus is not claimed when filing an income tax return.

Once available, the application form will be posted at

http://www.sbr.gov.bc.ca/individuals/income_taxes/personal_income_tax/tax_credits/fthb_bonus_about.htm

Home Buyers Bonus

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