ADJUSTMENT DATE: The term is most commonly used in real estate transactions, where the adjustment date refers to the agreed-upon date on which certain costs such as property taxes and interest will be adjusted between the buyer and the seller. The interest adjustment date is the date from which your lender first starts calculating the normal ongoing interest that you'll pay. Interest adjustment dates tend to commonly fall on the 1st day of the month after mortgage funds are advanced to the borrower. Lawyers and notaries routinely collect interest adjustments at closing. Confirm this when you discuss your closing costs with them.
MORTGAGE INSURANCE CMHC: Mortgage loan insurance is typically required by lenders when homebuyers make a down payment of less than 20% of the purchase price. Mortgage loan insurance helps protect lenders against mortgage default, and enables consumers to purchase homes with a minimum down payment of 5% - with interest rates comparable to those with a 20% down payment. Mortgage loan insurance is not to be confused with mortgage life insurance which guarantees that your remaining mortgage at the time of your death will not be a burden to your estate.
CLOSING COSTS: Closing costs include a variety of expenses over and above the price of the property. These can be divided into two categories: recurring costs and non-recurring costs. Recurring costs include property taxes and homeowner's insurance; one year's worth of each must be paid in advance and put in an escrow account to ensure that the cash is available when it is time for the bills to be paid. Non-recurring costs include fees related to conducting a real estate transaction, and include loan origination costs, title search fees, surveys, and credit report costs.
TITLE INSURANCE: In Canada if the purchaser takes out title insurance they are usually covered for any 'loss or damage' sustained if a claim that is covered under the terms of the policy is made. The terms of the policy usually cover search and survey irregularities, claims which may lead to the removal of pre-existing structures such as outbuildings, extensions, garages etc., a claim that arises due to fraud, forgery or duress, problems relating to rights of-way, pedestrian or car access etc., etc. The insurance company cover pre-existing but undiscovered risks and as with all insurance policies there are certain exemptions and excesses that you will need to understand and be happy with before you take out the policy.
COMMISSIONS: Most salespeople earn commissions for the work that they do and there are many sales professionals involved in each transaction, including Realtors, loan officers, title representatives, attorneys, escrow representative, and representatives for pest companies, home warranty companies, home inspection companies, insurance agents, and more. The commissions are paid out of the charges paid by the seller or buyer in the purchase transaction. Realtors generally earn the largest commissions, followed by lenders, then the others.
TAKING POSSESSION: The possession date and time is negotiated in the contract and agreed upon by all parties. With that said, let's give it some food for thought. Often times the seller would prefer some time after closing to allow possession to the buyer, typically 48 hours or so after closing. In fact, that is often indicated in the MLS for other agents to see and know the seller's preference. Keep in mind, everything is negotiable depending on which point of view you see the situation.
MORTGAGE INSURANCE CMHC: Mortgage loan insurance is typically required by lenders when homebuyers make a down payment of less than 20% of the purchase price. Mortgage loan insurance helps protect lenders against mortgage default, and enables consumers to purchase homes with a minimum down payment of 5% - with interest rates comparable to those with a 20% down payment. Mortgage loan insurance is not to be confused with mortgage life insurance which guarantees that your remaining mortgage at the time of your death will not be a burden to your estate.
CLOSING COSTS: Closing costs include a variety of expenses over and above the price of the property. These can be divided into two categories: recurring costs and non-recurring costs. Recurring costs include property taxes and homeowner's insurance; one year's worth of each must be paid in advance and put in an escrow account to ensure that the cash is available when it is time for the bills to be paid. Non-recurring costs include fees related to conducting a real estate transaction, and include loan origination costs, title search fees, surveys, and credit report costs.
TITLE INSURANCE: In Canada if the purchaser takes out title insurance they are usually covered for any 'loss or damage' sustained if a claim that is covered under the terms of the policy is made. The terms of the policy usually cover search and survey irregularities, claims which may lead to the removal of pre-existing structures such as outbuildings, extensions, garages etc., a claim that arises due to fraud, forgery or duress, problems relating to rights of-way, pedestrian or car access etc., etc. The insurance company cover pre-existing but undiscovered risks and as with all insurance policies there are certain exemptions and excesses that you will need to understand and be happy with before you take out the policy.
COMMISSIONS: Most salespeople earn commissions for the work that they do and there are many sales professionals involved in each transaction, including Realtors, loan officers, title representatives, attorneys, escrow representative, and representatives for pest companies, home warranty companies, home inspection companies, insurance agents, and more. The commissions are paid out of the charges paid by the seller or buyer in the purchase transaction. Realtors generally earn the largest commissions, followed by lenders, then the others.
TAKING POSSESSION: The possession date and time is negotiated in the contract and agreed upon by all parties. With that said, let's give it some food for thought. Often times the seller would prefer some time after closing to allow possession to the buyer, typically 48 hours or so after closing. In fact, that is often indicated in the MLS for other agents to see and know the seller's preference. Keep in mind, everything is negotiable depending on which point of view you see the situation.
About the Author:
Want to find Angus Real Estate Agents then visit www.napoleon.cc/angus_real_estate, then visit WETT Inspections in Barrie ON for your insurance requirements.
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