Four Common Home Buying & Selling Mistakes (and How to Avoid Them)

While your realtor can help you buy and sell a property and can provide you with valuable market insight, some of their commonly repeated advice can lead to unnecessary and avoidable complications. 

Here's why you should question some of their recommendations and what you should do instead to avoid these issues:

1. Do not buy and sell on the same day.

Your realtor may encourage you to close your purchase and sale on the same day. DO NOT DO THIS. They may make it appear that buying and selling on the same day can be done seamlessly and that it will save you money. In reality, doing this is a risky and potentially costly decision. 

The standard form OREA Agreement of Purchase and Sale (APS), which is used by most real estate agents, allows for closing to be completed by 6 pm on the day of closing.  This timeframe will be the same in your Agreement for your sale and your purchase. If you require your sale funds to complete your purchase and your sale is not completed until the end of the day, you will be unable to complete your purchase that day and you will require an extension on your purchase.  Purchasers who require extensions are liable for any costs incurred by the sellers due to the purchasers’ inability to complete the transaction as scheduled.

In the event of chain transactions, the sellers in your purchase may also be selling and purchasing on the same day. If you are unable to complete the transaction, then you can be liable for the costs they incur as well. Even something as minor as a delay in a wire transfer from the buyer's lawyer can lead to these bigger issues.

Instead, give yourself a buffer. The interest on a bridge loan or the cost of a few nights at a hotel will not only be cheaper but also provide you with peace of mind.

2. Never list the cost of a rental item on your Agreement of Purchase and Sale. 

If your purchaser is assuming any of the rental items in the property (hot water tank, furnace, A/C units, etc.) these items to be assumed MUST be noted in Section 6 of your APS. Ensure that your agent has not listed the monthly amounts of the rental items. While it may seem that you are being transparent, doing so puts you at risk of having to cover any increase in these costs should the rental provider adjust the rates.

Instead, avoid unnecessary complications. Simply list the items that the purchaser will be assuming, and the purchaser can verify fees with the rental company if needed.

3. Do not rely on MLS listings.

Listings are a great way to garner attention to a property and realtors can use it to highlight features such as blinds and light fixtures. However, MLS listings are a marketing tool and are not part of the APS. Similarly, verbal agreements also hold no weight and cannot be relied on.

 Instead, if there is an item that you want to ensure is included in the sale or any repairs you want to be done before closing, make sure it is listed in the APS to avoid any disappointments or disputes. 

4. Do not rely on GeoWarehouse for property details.

GeoWarehouse is a tool used by agents for property information, but it is not always accurate. We have had situations where the system has multiple or incorrect addresses for a single property. The data on GeoWarehouse is not updated as frequently as the Land Registry Office is which can lead to it featuring outdated or incorrect data.

Instead, verify all details with a lawyer, surveyor, or official land registry and only view GeoWarehouse as a starting point.

 

Your realtor plays a vital role in your real estate journey, but they are not all-knowing. A knowledgeable real estate lawyer can help you navigate the fine print and help ensure your transaction goes smoothly. Before making any major decisions, seek professional legal advice—because in real estate, what you do not know can cost you.