Real Estate Representation – protecting your interest

Real estate representation is an important topic to consider. Representation can fall into one of 2 categories: client and customer. The difference being a client receives additional obligations from his/her representative while a customer receives a limited set of obligations from the rep. More importantly, clients are owed fiduciary obligations that are not owed to a customer. Put another way: a real estate representative is not obligated to look out for the best interests a customer; a real estate representative is only obligated to protect and advance a client’s interest. This difference is enough to make you think twice about what type of representation you require.

The hallmark of good representation is full disclosure, avoiding and disclosing any conflicts of interest, and taking necessary steps to disclose to the buyer material facts related to the acquisition of property. Be prudent and ensure you are well represented in your real estate transaction. My Buyer Representation Agreements are easy to understand, easy to cancel, and give you added value in service, tools, and positive results. Finally, keep in mind that as a buyer, you do not pay for my representation services. My commissions are paid by the seller and disclosed to you.

First-Time Home Buyers' Tax Credit (HBTC)

The Home Buyers' Tax Credit (HBTC) is a Government of Canada incentive enabling you to claim up to $5,000 of your closing costs. Your closing costs are multiplied by the lowest personal income tax rate for the year (15% in 2009). For instance: assuming the maximum amount of $5,000 is claimed, for 2009, the credit will be $750 ($5,000 * 0.15 = $750). Here is a great link to additional information and qualification for the First-Time Home Buyers' Tax Credit (HBTC) incentive.

Home Buyers' Plan (HBP) RRSP

This government program enables you to withdraw up to $25,000 in a calendar year from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability. For those who are saving for a down payment, this is an perfect way to save because you get the tax incentive while you save into your RRSP, and pay no tax when you withdraw up to $25,000. It just makes sense! Here is where you can learn more about qualifying conditions for Home Buyers' Plan (HBP) RRSP .

Land Transfer Tax Rebates

As a first-time home buyer you may be eligible for a refund of all or part of the tax up to a maximum of $4,000. The tax refund applies to newly constructed or resale homes. You must occupy the home as your principle residence. An important condition is you can not have ever owned a home anywhere in the world. You must apply for the refund within 18 months of the date of registration. Get all the information on Ontario Land Transfer Tax Rebate

Municipal land transfer tax rebates vary by municipality. In Toronto, similar qualification rules apply. Both newly constructed and resale homes qualify, and the maximum rebate is $4,475. Follow this link to get more information on Toronto Municipal Land Transfer Tax (MLTT) Rebate. For more information on these rebates and others in your municipality contact me at any time.

GST/HST New Housing Rebate

In case you are considering a newly constructed home for your first-time purchase, you may be eligible to recover some of the GST/HST. In some situations, the buyer rebate can be assigned to the builder, so the rebate is baked into the purchase price. This is a complex topic and you should consult either a lawyer and or an accountant for information specific to your case. Builder agreements should be reviewed by a lawyer prior to signing. Here is a link for information on the Toronto Municipal Land Transfer Tax (MLTT) Rebate. For more information on these rebates and others in your municipality contact me at any time.

5% Down Payment

CMHC mortgage loan insurance allows buyers to get a mortgage for up to 95% of the purchase price of a home. This program really makes a positive difference for first time buyers that have a limited amount for a down payment. There are several conditions which I think will be quite easy to satisfy for most first-time home buyers. This is an important topic to discuss with your financial devisor or lender of choice. Here is a link to a page with the complete description of the CMHC Mortgage Loan Insurance program.