Home Buying FAQs – Offers, Inspections & Closing Process
Finding your dream home is exciting, but getting from an accepted offer to receiving your keys involves several important steps. Understanding inspections, financing conditions, legal reviews, closing costs, and final paperwork can help reduce surprises and make the process smoother.
Whether you’re purchasing a resale home in Toronto, a townhouse in Milton, a condo in Mississauga, a detached home in Brampton, or a new construction property in Calgary, the following FAQs will help you understand what to expect.
Frequently Asked Questions
31. What is a home inspection?
A home inspection is a visual examination of a property’s accessible systems and components conducted by a qualified home inspector. It is intended to identify visible issues and provide buyers with a better understanding of the property’s condition.
A typical inspection may include:
- Roof
- Foundation
- Electrical system
- Plumbing
- Heating and cooling
- Insulation
- Windows and doors
- Attic
- Basement
- Exterior
32. Should I always get a home inspection?
Many buyers choose to include a home inspection condition, especially when purchasing resale homes. In some competitive markets, buyers may decide differently based on their circumstances. The appropriate approach depends on the property, market conditions, and the buyer’s risk tolerance.
33. How long does a home inspection take?
Most residential home inspections take between two and four hours, depending on the property’s size, age, and condition.
34. Who pays for the home inspection?
In most transactions, the buyer pays for the home inspection when it is arranged as part of their due diligence before completing the purchase.
35. Can I attend the home inspection?
Yes. Many buyers attend the inspection so they can better understand the home’s systems, maintenance needs, and any issues identified by the inspector.
36. What happens if problems are found during the inspection?
The outcome depends on the terms of the agreement and the nature of the findings. Buyers may decide to proceed, negotiate changes, request repairs if appropriate, or, where permitted by the agreement, exercise their rights under an inspection condition.
37. What is a conditional offer?
A conditional offer includes one or more conditions that must be satisfied or waived before the agreement becomes firm. Common conditions relate to financing, home inspection, lawyer review, or condominium document review.
38. What is a firm offer?
A firm offer generally means there are no outstanding buyer conditions remaining before the agreement becomes binding, subject to its terms. Buyers should understand the implications before submitting or accepting a firm offer.
39. What is a multiple-offer situation?
A multiple-offer situation occurs when more than one buyer submits an offer on the same property. The seller chooses how to respond, which may include negotiating, accepting one offer, or requesting improved offers.
40. Should I automatically offer above asking price?
Not necessarily.
The asking price is only one factor in determining market value. Comparable sales, property condition, neighbourhood trends, competition, and your personal budget should all be considered before deciding on an offer price.
41. Can I negotiate after my offer is accepted?
Once an agreement is accepted, the parties are generally bound by its terms. If conditions remain outstanding, there may be opportunities for further discussion depending on the circumstances.
42. What is title insurance?
Title insurance is a policy that may protect property owners and lenders against certain title-related risks covered by the policy, such as specific title defects, fraud, or survey-related issues. Buyers should discuss title insurance with their lawyer to understand the available coverage.
43. Do I need a real estate lawyer?
A lawyer plays an important role in reviewing legal documents, conducting title searches, arranging the transfer of funds, and completing the legal aspects of closing. Buyers should retain their own independent legal counsel.
44. What are adjustments on closing?
Adjustments are prorated amounts between the buyer and seller for items such as:
- Property taxes
- Utility charges
- Condominium fees (if applicable)
- Fuel or rental item adjustments (where applicable)
These adjustments are calculated by the lawyers before closing.
45. What happens before closing day?
In the days leading up to closing, buyers typically:
- Finalize mortgage financing
- Arrange property insurance
- Meet with their lawyer
- Transfer closing funds
- Complete any required documentation
- Schedule a final walkthrough if appropriate
46. Can I do a final walkthrough?
Many purchase agreements provide an opportunity for a pre-closing visit or walkthrough. This allows buyers to verify the property’s condition and confirm that agreed-upon inclusions remain in place before completion.
47. What happens on closing day?
On closing day:
- Lawyers exchange funds and legal documents.
- Ownership is transferred to the buyer.
- Mortgage funds are advanced by the lender (if applicable).
- The seller’s mortgage is discharged where required.
- Keys are released once the transaction is completed.
The exact timing varies and depends on when all legal and financial steps are finalized.
48. When do I get the keys?
In most transactions, buyers receive the keys after the legal closing has been completed and ownership has officially transferred. Your lawyer or real estate professional will advise you when the keys are available.
49. What is Tarion Warranty Protection?
Many newly built homes in Ontario are covered by warranties administered through the Tarion program, provided the home and builder meet applicable registration requirements. Warranty coverage varies by type of defect and applicable timelines, so buyers should review the builder’s warranty information carefully.
50. What is a Status Certificate?
When purchasing a resale condominium, the Status Certificate contains important information about the condominium corporation, including financial information, common expenses, legal matters, and other details relevant to the unit. Buyers commonly have their lawyer review the Status Certificate before proceeding where a review condition exists.
51. What is the difference between freehold and condominium ownership?
Freehold ownership generally means you own the land and building, subject to applicable laws and registered interests.
Condominium ownership typically means you own your unit while sharing ownership of common elements such as hallways, elevators, parking areas, or amenities, along with responsibility for condominium fees and compliance with condominium rules.
52. What should I do immediately after buying my home?
After taking possession, consider:
- Changing exterior locks if appropriate
- Updating mailing addresses
- Setting up utilities
- Reviewing maintenance schedules
- Testing smoke and carbon monoxide alarms
- Locating shut-off valves and electrical panels
- Creating a home maintenance budget
53. What are common mistakes first-time buyers make?
Some common mistakes include:
- Shopping before establishing a budget
- Underestimating closing costs
- Focusing only on purchase price instead of total ownership costs
- Skipping due diligence without understanding the risks
- Making emotional decisions without considering long-term needs
Taking time to plan and seek professional advice can help reduce these risks.
54. Can I buy and sell at the same time?
Yes. Many homeowners coordinate the sale of their current property with the purchase of another. Timing, financing, and contractual considerations should be discussed with your REALTOR®, lender, and lawyer to help manage the transition.
55. Why work with The Realty Bulls through the entire buying process?
Buying a property involves much more than finding a listing online. The Realty Bulls supports clients by helping them:
- Understand neighbourhoods and market conditions
- Compare resale and pre-construction opportunities
- Coordinate with mortgage professionals and lawyers
- Navigate offers and negotiations
- Understand closing costs and timelines
- Make informed decisions throughout the purchase process
Our goal is to provide educational guidance and personalized service from your first consultation to closing day.
Home Buying Timeline at a Glance
- Determine your budget.
- Obtain mortgage pre-approval (if financing).
- Begin your home search.
- View properties.
- Submit an offer.
- Complete any conditions.
- Finalize financing.
- Arrange insurance.
- Meet with your lawyer.
- Complete your final walkthrough (if applicable).
- Close the transaction.
- Receive your keys and move into your new home.
Coming Next – Section 4: Pre-Construction & New Homes FAQ (Part 1)
The next section will cover:
- What is a pre-construction home?
- Buying directly from builders
- Platinum and VIP launches
- Deposit structures
- Interim occupancy
- Builder agreements
- Assignment sales
- HST rebates
- Tarion coverage
- Occupancy fees
- Development charges
- Upgrade options
- Investment opportunities
- Risks and benefits of buying new construction
This will be one of the cornerstone sections of The Realty Bulls’ knowledge hub, providing a comprehensive introduction to buying pre-construction homes and condominiums across Ontario and Alberta.
