Real Estate - Frequently Asked Questions
FAQ's
What does MLS mean?
It means Multi Listing Service allowing all REALTORS® from different Brokerages to sell each other’s listings, promoting a generous way of providing service to the Sellers and Buyers with great visibility in a faster way.
In London and St.Thomas, our local real estate board is the London and St. Thomas Association of REALTORS® (LSTAR), as a member of CREA, the real estate board allows our listings to appear on Realtor.ca, Canada’s number one Real Estate website.
Should I Buy a Foreclosure or Power of Sale Property?
Foreclosure or Power of Sale properties are not necessarily the cheapest or best buying deals, the Court/Lender or their representatives might be interested in selling the property through a REALTOR®, in order to obtain the best market value for that property. If you as Buyer are represented by a REALTOR®, your REALTOR® will help you determine if it is a good deal for you.
From the property owner’s point of view, a Foreclosure or Power of Sale will negatively affect the homeowner’s Credit Score badly. It is recommended that owners reach out as early as possible once they realize they are in a difficult finance situation and talk to their Lender to work out an alternate payment plan to bring their mortgage current or, consult a Finance Expert to search for better options.
What is a Power of Sale?
Similar to the Foreclosure. It means that the Borrower (Mortgagor) has stopped paying mortgage to the Lender and the Lender is allowed to recoup the funds by selling the property.
In the Power of Sale the Borrower (Mortgagor) remains on title until the property is sold. The Borrower (Mortgagor) is entitled to any extra money, after deducting debt repayment and fees, from the sale. The Mortgagor is responsible for any losses incurred from the sale.
In Ontario, the Mortgage Lender is able to evict the property occupants and sell the property.
Power of Sales requires less involvement from the Court System than the Foreclosure do.
Why a REALTOR®?
Whether Buying or selling there are many aspects and procedures that might not be familiar to you, it is recommended to hire an expert; someone with the credentials, knowledge, experience and commitment to walk you through it. Your REALTOR® will be your Representative, his/her role is to work to your benefit. You are choosing the person who will help you make a wise decision about one of the major assets in your life. This shall be a competent professional committed to serve with integrity and competence.
What is CREA?
The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade Associations, representing the interests of its members (REALTORs®) to the Canadian Government and providing technology products and national standards to enhance professionalism and ethics that affect home ownership. CREA works for the benefit of homeowners, through the efforts of its members (REALTORS®)
What is RECO?
Real Estate Council of Ontario regulates Real Estate Professionals to protect the public interest. It is the entity enforcing the rules that REALTORS® and its Brokerages must follow.
What is a Seller’s Market?
The Demand of houses is higher than the Supply. Fewer houses available will help prices to go up.
What is a Buyer’s Market?
The Supply of houses outpace the Demand. Buyers might have better chances to offer lower prices and get better deals.
Who is a Listing Agent?
A Listing Agent is a REALTOR®, representing the Owner of the home. He/she works for the Seller. The Listing Agent has fiduciary duty to the Seller and must represent the Seller’s best interests. Seller will pay a remuneration to the Listing Agent and the Cooperating REALTOR® who brings the Buyer of the property. It might happen that the Listing Agent sells direct to the Buyer, however, it is still Listing Agent’s responsibility to act towards the Seller’s best interest, facilitating the transaction to the Buyer.
What is the Buyer’s Agent Role?
Buyer’s REALTOR® represents your interests when buying a home and has Fiduciary Duties to you as a Buyer. Sometimes referred to as the Cooperating REALTOR®, your REALTOR® will make a big difference in the house hunting process. Your Agent will keep you informed and educated about the current market, the available resources you have and the options you face. A good REALTOR® will be the one who facilitates the process for you as a Buyer and will work hard to represent your best interests.
What is a Home Inspection?
A home inspection is an examination of the state of the home, usually required by an interested Buyer; it is desired to be conducted by a qualified Home Inspector, who shall have the credentials and expertise to identify major defects and other problems for the Buyer to make an informed decision when buying the property.
What does the Home Inspector do?
Depending of the category of the service you want to have, the Home Inspector usually goes through the whole house, looking for structural failures, possible leaks or cracks, safety hazards or other issues that might affect Buyer’s ability to obtain financing, insure the property and live comfortably in the home.
What is a Foreclosure home?
Foreclosure is a legal process originated by a Lender (Mortgagee) and allowed by a Court or Sheriff in the purpose of recovering a balance of a Loan from a Borrower (Mortgagor) who has stopped paying the mortgage. The Lender is able to take title to the property, which is sold to obtain the unpaid resources back and protect Lenders from losing money.
In the Foreclosure, the Lender (Mortgagee) also takes responsibility for any losses and is entitled to any future profits from the sale of the home.
With the Foreclosure, the Lender has to sue the Borrower in court and wait for the Court to issue a judgement. It takes more time and requires more legal work than a Power of Sale.
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