REAL ESTATE FACT OR FICTION: 8 things you need to know before ...

BOOMER EDITION

5 KEY WAYS THE REAL ESTATE MARKETPLACE HAS

CHANGED

REAL ESTATE FACT OR FICTION: 8 things you need to know before you

buy or sell a home

5 QUESTIONS TO ASK WHEN HIRING

A REAL ESTATE PROFESSIONAL

What to do if you're not happy with your real estate representative

Message from the CEO

By Kate Murray

Downsizing to a smaller home? RECO is here to help.

Downsizing to a smaller home, or selling the family home, can be an emotional experience, especially if you've been out of the real estate market for a long time. And much has changed in the real estate world in recent years.

There's no shortage of information on the Internet, but much of it focuses on market trends and how to get the best price. You also need information about your rights and responsibilities as a buyer or seller. How do you ensure you are protected?

Fortunately, the Real Estate Council of Ontario (RECO) is here to help.

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Providing objective advice

RECO works to protect consumers and enforce the rules that real estate professionals in Ontario must follow. That means we can offer buyers and sellers impartial advice on how to protect themselves, and ask the right questions during the real estate transaction.

This newsletter is a great place to start. Inside, you'll find key information about today's real estate market, how to choose a representative, and more.

Three pillars of protection

All brokers and salespersons in Ontario are registered with and regulated by RECO. That's why working with a real estate professional provides buyers and sellers with three pillars of protection.

Knowledge

Real estate professionals must complete courses before they can enter the real estate sector. And once they are in the profession, they complete additional courses every two years to keep their knowledge up-to-date and their skills sharp.

Professional standards Brokers and salespersons are required to uphold professional standards that emphasize treating anyone involved in a transaction with fairness, honesty and integrity, and following rules and regulations that are there to protect consumers. In the rare instance that something goes wrong and you want to complain about your representative or the brokerage, RECO will investigate the complaint and take steps to hold the real estate professional accountable for their actions.

Insurance

Deposit insurance provides you with peace of mind knowing that your hard-earned payment will be held in trust and insured against loss, insolvency or misappropriation by a brokerage.

Information is power

When it comes to real estate, informed consumers have more positive experiences. Understanding the process and asking the right questions can make a big difference throughout the buying and selling process. I encourage you to keep reading to learn more.

You can also find more buying and selling tips on RECO's website (reco.on.ca) and on our Facebook page (RECOHelps). RECO's "Ask Joe" column in the Toronto Star is also a great resource. You can find it in the Saturday "Homes" section.

Do you have any comments or inquiries about the reconnect newsletter? Please send them to: communications@reco.on.ca

Real Estate Council Of Ontario 3300 Bloor Street West Suite 1200, West Tower Toronto, Ontario M8X 2X2

Tel: 416-207-4800 Toll-Free: 1-800-245-6910 Fax: 416-207-4820

@RECOhelps /RECOhelps

Disclaimer: While RECO makes every effort to ensure that the information in this publication is current and accurate, RECO does not warrant or guarantee that it will be free of errors. The information contained in this publication is not intended to cover all situations. It is general information only and users/ readers are encouraged to seek their own independent advice for particular fact situations.

5 Key Ways the Real Estate

Marketplace has Changed

If you've owned your current home for many years, you may find that a lot has changed in the real estate world. Understanding what has changed can come in handy when you're entering the market for the first time in a while.

1. Buyers and sellers have more access to info

Real estate advice and trends are easily available online at any time. Today, many buyers turn to the online Multiple Listing Service? at REALTOR. ca to see what homes are available for sale. The accessible, up-to-date system is a big upgrade from paper-based listings.

2. Real estate professionals are more accessible

Cell phones and mobile technologies have made brokers and salespersons easier to reach, so when you need guidance or advice, you're more likely to get a quick response.

3. Commerce is conducted electronically

Transactions often take place electronically as well. Contracts can be signed with electronic signatures, offers can be submitted via email, and money can be transferred electronically too. This can make the buying and selling process more efficient, if you choose to take this approach.

4. Real estate professionals can offer specialized service

Boomers have unique needs when it comes to buying or selling real estate. The real estate profession has responded to this reality, and there are now brokers and salespersons who specialize in serving the boomer market. You can find one near you by visiting or .

5. The Real Estate Council of Ontario (RECO) is looking out for consumers

The Ontario government created RECO in 1997 to protect home buyers and sellers. That means enforcing rules and a code of ethics for real estate professionals, and providing helpful advice to home buyers and sellers. RECO also provides insurance that protects your deposit payment when it is held by a registered brokerage.

One thing hasn't changed: the knowledge and experience of a real estate professional can be very valuable when you're buying or selling your home.

A broker or salesperson can help you navigate the process and provide key advice. Before you choose a representative, ask friends or family if they've worked with anyone they would recommend.

Be sure to interview a few candidates to ask them about their approach to the buying and selling process, their experience, the services they will offer, and the fees and commission they will charge. It's also a good idea to ask for references and actually contact them.

A lot has changed in the real estate world, but the changes have provided a lot of benefits for home buyers and sellers.

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fact

Real estate fact or fiction: eight things you need to know before buying or selling a home

You read RECO's Ask Joe column in the Toronto Star each Saturday. You can finish the sentences of your favourite HGTV real estate show host. You consider yourself as savvy as can be when it comes to real estate knowledge. But when it comes time for you to buy or sell a home, can you decipher fact from fiction? Read on for the eight home buying and selling essentials that you need to know before you buy or sell a home.

Real estate contracts are all standardized ? all you have to do is sign.

Every home is unique and so is the contract to buy it or sell it. Buying or selling your home involves a lot of paperwork and the devil really is in the details. Signing your name on the dotted line is not something to be taken lightly?you're dealing with binding contracts for significant values. Don't sign something you haven't read or don't understand. You can always ask your broker or salesperson to explain ?that's why you're hiring them. If it's still not clear, consider speaking with a lawyer. Don't sign until you're comfortable with the whole agreement.

Also keep in mind, many of the terms and conditions in real estate contracts are negotiable, such as how long the contract will be in effect or whether the appliances stay when a home is sold. It never hurts to ask!

However, sometimes your representative may be reassigned or asked to help out a colleague. This can be distressing, especially if you like and trust your representative. But, it's allowed so long as the other representative works at the same brokerage. To avoid disappointment, it's important to have clear lines of communication and share your expectations. And if possible, before you sign your representation agreement, put in writing who your primary contact will be at the brokerage and their level of involvement during your buying or selling process.

When you sign on the dotted line of a representation agreement, your contract is between you and your salesperson.

When you sign a representation agreement to buy or sell, it's a contract between you and the brokerage where your salesperson works, not with the individual salesperson.

It's possible that you chose that brokerage because you want to tap into the expertise of a specific representative. After all, you have a lot at stake and you want to work with someone who has a great reputation.

A brokerage can't represent both the buyer and the seller without written consent from both.

When a brokerage represents both the buyer and seller, this is called "multiple representation." By law, your representative must tell you if a multiple representation situation comes up and let you know how it will affect the services they provide to you. They can't proceed with multiple representation unless all parties agree to it in writing. So, be sure to ask questions and make sure you are comfortable with the implications.

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fiction In a bidding war, sellers must go with the highest priced offer.

Sellers do not have to choose the highest priced offer, even if it's at or above the

home and what repairs might be needed. There is no guarantee the inspection will catch everything, but it's your best chance. Attending the inspection is also a good idea. You'll have the chance to ask questions and gain

asking price. Other factors could be more important to

additional insights from the home inspector.

them, such as the size of the deposit, the closing date and other conditions attached to an offer. For example, a seller may accept a lower value offer with an earlier closing date

If your conditional offer doesn't firm up, you will automatically get your deposit back.

because they already bought their new home and don't

If you do not waive or fulfill the conditions

want to carry both mortgages.

in your offer within the time allowed, the

deal will not proceed. This means your deposit ? which is

Having an open house can come

held in a brokerage's trust account ? can be released only if

with risks if you're not mindful.

both the buyer and seller agree, or if you obtain a court

Holding an open house can be a great way to show off your home to potential buyers. But the possibility of theft or damage is there. Before the

order. You should seek the advice of your lawyer and real estate representative before you decide to neither waive nor fulfill a condition.

open house, be sure you talk to your representative about how the open house will work. If you have concerns, voice them! Agree on a game plan about what precautions will be in place. There are some basic safety measures you can take. Store all valuables, medications and financial

There are stringent rules and regulations in place to protect consumers when they buy or sell a home in Ontario using a registered real estate professional.

information in a secure place. Have a sign-in sheet for all

Real estate professionals are regulated in

visitors. Ask your representative to have an assistant on

Ontario. This means that anyone working

hand to escort visitors at all times. It's important to

as a real estate salesperson or broker must be registered

remember that it's your home, and you set the rules for

with RECO and must follow the rules and a Code of

visitors.

Ethics. RECO's job ? with authority from the provincial

government ? is to protect home buyers and sellers.

A home inspection's a waste of money ? if you give the place a good look around, you'll know if it's been kept up or not.

Working with a registered real estate professional has its advantages. For one, you can be confident they have met the standards needed to enter the profession and they

A home inspection may find problems that take part in ongoing education to stay on top of emerging

could turn your `dream home' into the

trends. They are also enrolled in an insurance program

nightmare you avoided. Carefully consider the risk of

that protects consumer deposits. In short, you are able to

future expensive repairs before you skip an inspection.

draw on their professional knowledge and guidance as you

Given the risk, you might want to ask yourself, "Can I

engage in one of the biggest transactions of your life.

afford not to have an inspection?" A qualified and experienced home inspector will examine the major systems in the home, including electrical, roofing, plumbing, heating/air conditioning, foundation and septic

"While buying or selling a home can be complicated, there's plenty you can do to increase the odds that you will have a positive experience," says RECO's Registrar Joseph Richer. "You can achieve that by asking questions, doing your research and taking advantage of the expertise provided by working with a registered real estate professional."

systems. The inspector

For more information about these topics or to verify the

will help you assess the

registration of a real estate professional in Ontario, visit

overall condition of the

reco.on.ca.

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