Let me help you every step of the way.

My Commitment to You       1.                 To assist you in determining your specific needs and desires in selecting a home.   2.                 To conduct an ongoing search for you new home by checking MLS listings, networking with RE/MAX sales associates and my knowledge of the market.   3.                 To schedule appointments and accompany you on showings of those homes that interest you or provide you the address so you may drive by.  Give me a call if you want to look inside.   4.                 To provide mortgage qualification assistance to facilitate the mortgage application process.   5.                 To provide assistance in selecting qualified companies and individuals that may be necessary for appropriate and desired property inspections.   6.                 On request provide comparable market analysis and tax record research on any homes selected for possible purchase, providing you with factual data on recent comparable sales that will assist you in preparing an offer to purchase.   7.                 To assist you in analyzing all gathered information prior to making an offer to purchase.   8.                 To assist you in preparing your offer to purchase.   9.                 To schedule appointments to provide access to the property for inspectors, appraisers, etc.   10.             To monitor the post-contract, pre-closing process, to assure that all necessary documentation is completed.   11.             To be available after closing to assist you with any unresolved or unforeseen problems.    Your Commitment to Me     You are a house-hunter, while driving home from work or browsing the Internet, you notice a house for sale that interests you, but it has another real estate salespersons name on it.  Can you ask me about it?  ABSOLUTELY!  All real estate salespeople list properties for sale on the Multiple Listing System (MLS).  This system provides property information such as price, square footage, services, area, etc.  Many buyers are not aware that one salesperson can provide them with information on homes listed by another salesperson using MLS, or for that matter, nearly any home listed on the market.     What about Open Houses?   You are not obligated to work with the salesperson that shows you through the open house.  Simply mention to the salesperson that you are working with me.  New home builders display homes are not open houses and require that I register your name with them prior to viewing.  Please discuss with me and I will make the necessary arrangements.   So remember, when you see a house with another real estate agents sign in front, dont feel that you might be bothering me if you call to ask me for information or would like me to show you the house.  DEFINITELY CALL ME.   I would like to work for you as your salesperson.  We will be WORKING TOGETHER.  If you see something you like, let me know. If I see something I think you will like, I will let you know.  I will do my very best to make your dream come true.  My service to you is given willingly.  I promise professional service and will earn your loyalty.   Working with a Real Estate Person     Buying or selling a home is often one of the largest financial transactions a person makes.  It is important to consider the kind of legal relationship you might be entering with the real estate you choose to assist you.   The term agent is often used interchangeably with a real estate person, broker, licensee, or the real estate firm they are employed with.  This brochure will refer to the individual representative as the salesperson and the real estate firm he/she works for as the real estate firm or Agent.     Your Relationship with the Salesperson   When you engage a salesperson to represent you or act on your behalf in a particular matter, an agent/client relationship arises between you and his/her real estate firm.  This relationship can be created by contract such as when you sign a listing contract for the sale of your home or a buyer agency contract for representation when buying a home.  It can also arise through the implied conduct and activity between you and the salesperson such as when the salesperson takes on the role of representing you in viewing properties, obtaining information, or assisting in negotiations.  Through these actions and conduct, it may become evident that the sales person has undertaken to represent you even though your legal relationship has never been discussed.  In the absence of any written listing or buying contract with the real estate firm, an agent/client relationship can be created when a salesperson undertakes to do something on your behalf, which results in your reliance and acceptance of the salesperson's actions on your behalf.   The Salespersons Duties and Obligations   Once an Agent/Client relationship is formed, the salesperson and his/her real estate firm is required to protect and promote your best interests in the transaction as they would their own.  The following outlines some of their duties arising out of an agent/client relationship in a typical real estate transaction:   1.                 Loyalty to serve your best interest ahead of anyone else, including their own and at all time to exercise good faith and to disclose all known facts and information which may influence your decision.   2.                 Obedience to follow all of your lawful instructions.   3.                 Discretion to keep confidential your private circumstances, motivations, and confidences which you shared with the salesperson or which the salesperson or the real estate firm has learned.   4.                 Competence to exercise reasonable care and skill in performing all assigned duties.   5.                 Accounting of all money, deposits, or other property entrusted to them.   Types of Agency Relationships     Agent represents one Party:   In Manitoba, the approach to real estate agency relationships is one that reflects the general understanding and expectation of buyers and sellers.  It is generally understood that whether selling or buying, the salesperson and his/her real estate firm that you engage and rely on for representation has formed an agency relationship with you whereby the agent/client duties arise.  It is this approach that is reflected in your local real estate board's multiple listing contract for residential property and the statutory residential offer to purchase form that the salesperson is required to use for residential properties.  It is assumed, that unless the parties otherwise agree, the salesperson and the firm representing the seller is the seller's agent and the salesperson and the real estate firm representing the buyer is the buyer's agent.     Agent Represents Both Parties:   It may arise that your salesperson and his/her real estate firm also represents the person who wishes to buy your home (or represents the owner of the home you are interested in buying).  This may occur (even though the salespeople are different persons) when both salespeople are employed by the same firm.  When this occurs, a conflict of interest arises and the real estate firm can only continue to represent both parties when both parties consent to the joint representation and acknowledge the impact that the joint representation will have on the agent's duties.  You may be asked to sign an Acknowledgement of Limited Joint Representation.  The terms of that acknowledgement will set out the agreed limits of the agency duties outlined earlier in this brochure.  When both parties agree to limited joint representation, the salesperson and his/her firm's relationship to both parties is tempered by the requirement for fairness and even-handedness resulting in the firm being unable to represent the interests of either party over the other. Subject to the terms of the Acknowledgement of Limited Joint Representation, the salesperson may no longer be able to keep confidential certain types of information relevant to the transaction from the other party and may be compelled to disclose these facts in an exercise of openness and fairness.  Even thought his conflict arises, if both seller and buyer consent to Limited Joint Representation, the agent can continue.   If you have any questions or concerns about joint representation and the impact it will have on the agency duties, you should discuss your concern with the salesperson involved before entering an agent/client relationship.  The terms of any listing or buying contract that you sign will include your consent to the real estate firm representing both parties jointly; if that is not your desire, the agreement should be amended accordingly.     No Agency Representation:   Apart from a single agency relationship (where the firm represents one party) or joint agency relationship (where the firm represents both parties), it is possible to engage the services of a salesperson without you and the real estate firm establishing an agent/client relationship.  An example of this might be when you call a salesperson in response to an ad or a sign on a property, or when you attend an open house and deal with the salesperson representing the seller.  In these instances, the salesperson you ask to assist you should make it clear to you that in showing you a particular property he or she is representing the seller alone.  Even though it is clear between you and the salesperson that the salesperson is not representing you, the salesperson will still owe certain legal and ethical responsibilities to you which include the following:   1.     Honesty and Fairness in response to all of your questions concerning real property the salesperson is promoting. 2.     Care and Skill in providing accurate information and assistance with the offer to purchase contract, in presenting the offer you submit, in dealing with conditions, in explaining legalities, and overall general assistance.   One of the disadvantages of dealing with the other party?s agent or not having an agent/client relationship with the salesperson you have assisting you, is that you cannot expect the salesperson to negotiate price and terms on your behalf or disclose all information that may influence your decision because such activity may be contrary to the best interests of the client whom the salesperson represents.   Agency Disclosure   The salesperson who gave you this brochure is a member of The Manitoba Real Estate Association and (where organized) a local real estate board.  These members are also members of the Canadian Real Estate Association, which entitle the salesperson to be called a REALTOR.  A REALTOR is required to abide by a strict code of ethics and standard of business practice which serves to protect the buying and selling public.  One of the ethical obligations embodied in the standards of business practice requires that all REALTORS disclose to all parties concerned who it is they are representing in a real estate transaction, i.e., seller or buyer.  More precisely the requirement reads as follows:   A REALTOR shall fully disclose in writing to, and is advised to seek written acknowledgement of disclosure from, al parties to a transaction regarding the role and the nature of service the REALTOR will provide to the client versus the customer or other party to the transaction.  The REALTOR shall also disclose his or her role to the other REALTOR involved in the transaction.   If you have any questions about the contents of this brochure, talk to the salesperson or another representative of the firm who gave you this brochure or contact your local real estate board or The Manitoba Real Estate Association.    The Home Buying Process     Selecting Homes       Viewing Homes       The Contract       Closing       Possession      Three Easy Steps to Finding a Home     1.                 Assess Your Housing and Lifestyle Needs.   Everyone has different lifestyle needs which dictate the type of home they require.  Your family may have children, pets or hobbies such as gardening, etc.  Your individual circumstances will ultimately govern your choice, however, it is possible to generalize and draw some conclusions about what you need now and what you will possibly need in the future.     2.                 Assess Neighborhoods Suited to Your Needs.   Many factors go into choosing the right neighborhood for you and your family.  Location is one of the most important components of real estate value, so choose carefully.  AS you are investing a lot of money into a property which you may occupy for some time we suggest you weigh the following factors:   Property Value rising or falling, maintenance of homes Zoning for work from your home, future development Environmental Issues,  noise. e.g. flight paths, traffic or trains Transportation, distance to work, bus routes, proximity to major thoroughfares, chauffeuring of children Schools, proximity, curriculum, special education requirements, language programs Shopping, proximity to grocery stores, convenience centres Recreation, youth and sports groups, playgrounds, bike paths, swimming pools, fitness clubs  Arrange for you to view the right houses in the right neighborhoods quickly and efficiently.  I will introduce you to builders if you are considering a new home.     New Home vs. Resale Home ? Advantages and Drawbacks   Resale usually costs less, established neighborhood, landscaping and fencing, redecorating, maintenance costs, requires inspection for structural and other problems such as flooding, roof leakage, etc.  You may want to hire an expert to do an inspection.   New choice of flooring, fixtures, etc. latest building standards and energy efficiency, builder warranty usually available, neighborhood amenities may be incomplete.   During the Search   You should view several houses before considering making an offer.  Communicate honestly with me your impressions of the houses as you see them.  I am more effective when I know what you like and dislike.  Pay attention to prices similar houses have recently sold for in the neighborhood.  Review these sales and current listings and compare them with the house you wish to buy.   Be aware of underlying problem which may affect your equity.  Remember, you may want to move within this community or you may be offered a transfer.  The ease with which you can resell this property will contribute to the ease of your next move.  Consider how well the home will sell in one or two years.  To help protect your equity, be a smart and objective buyer and assess these ten factors:   1.                 Is the house located on a busy street? 2.                 Is the property close to an obstacle or negative influence? (i.e. an apartment building, shopping center, school, radio tower, railroad track, airport or commercial project). 3.                 Are there plans for this neighborhood that you may be unaware of (i.e. a future highway, a commercial development or a new housing development) that will provide competition on resale? 4.                 Does this neighborhood, for any reason, have a poor reputation? 5.                 Is there any indication of water seepage or damage in this house? 6.                 Is the house far superior or inferior to other houses in this neighborhood? 7.                 Does the floor plan of this house present problems? 8.                 Will you have to renovate or add too the house to the point where your costs far exceed market value?   A "yes " to any one of these may influence the future resale of your home.     Housing Cost   Cost is divided into two main categories. Your initial cost to purchase a home and the continuing costs of owning that home.   Initial Costs                            Continuing Costs           Include:                                   Include:                                                                                    Home sale or                            Mortgage and purchase                                   Insurance           price                                         Payments               Acquisition Costs:                       Property           Legal Fees and                            Taxes           Taxes               Moving Expenses                        Home and Upkeep                                                               Maintenance Costs         What Can You Afford? ? Continuing Costs     To arrive at the amount that you can afford to spend on housing, include the following expenses:   (a)Mortgage Payments A mortgage lender can determine exactly how much you can borrow and therefore what you are able to pay for a house.  Generally, your monthly debts including house payments, should not consume more than 40% of your gross family income.  I recommend pre-qualifying for a mortgage so you know exactly what you can afford and fix the interest rate for a period of time.  Contact a few lenders to compare rates.  You will require verification of down-payment (cash, bonds, gift, etc.) and proof of income/employment.   (b)Property Taxes The cost of taxes for any particular piece of property is easily obtained from the municipality in which the property is located and I will be pleased to provide you with that information.       Since property taxes are paid at the end of June, but they cover the calendar year (January to December), a purchaser buying a property before June will receive a credit from a vendor for the vendor's share of taxes during his occupation.  Alternatively, a purchase of a property after June 30 results in the purchaser reimbursing a vendor for the vendor's payment of taxes for the period from possession to December of that year.   Include Property Taxes in Your Mortgage Payment?   To ensure that property taxes are paid, many mortgage lenders stipulate in their mortgage that they will pay the property taxes.  In such cases, one twelfth of the estimated yearly taxes is added to the total monthly mortgage payments.  This type of mortgage is called a "P.I.T" (Principal, interest and taxes) mortgage.  The payments on such a mortgage will vary from year to year depending on any rise in your property taxes.   If a lender requires taxes to be paid on a monthly basis, you should ask how such tax payments would be treated by the lender.   Some mortgage companies will apply the total P.I.T. payment toward payment of interest and the mortgage principal.  They then add the amount of the taxes they subsequently pay back onto the then reduced balance.   Other lenders simply take the tax portion (the "T" in the " P.I.T." payment) and put it in a special tax account. This "special tax account" is allowed to accumulate until the tax payment is due.  While some lenders pay interest on such tax accounts, others do not.  Consider this when computing the overall cost of your mortgage.   Save for Property Taxes on Your Own?                                        If property taxes are not included in the mortgage, a monthly amount should be set aside which, after one year, will cover the yearly property taxes.  Homeowners who do not do this often find themselves unable to quickly raise the necessary money at tax time and are often forced to either borrow the outstanding amount or pay the late payment penalty.     Make Monthly Property Tax Payments Directly to City Hall?   T.I.P.P. tax installment payment program whereby you authorize the City to debit your account by pre-authorized cheque for 1/12th of property tax starting in January each year.     (c)  Fire and Liability Insurance   Most standard homeowner fire insurance policies not only insure against fire damage to your home, but also against loss on the contents in the house, and can provide comprehensive personal liability.  The amount of insurance carried should cover the replacement value of the home being insured.  (as opposed to the purchase price of the house which included the land value). The land does not need to be insured against fire.   You should arrange for coverage effective on possession date.  Note that unless specifically requested, coverage of stamps, jewelry, and other such items in most instances are not included.  You may include these items, but it will cost you more.   (d) Utility Charges   To calculate the approximate utility charges, remember to average these over an entire year, as both heating, water and electricity charges vary according to the season.   (e) Repairs and Maintenance   It is often impossible to determine the exact amount required for maintenance and repairs.  Homeowners often allocate a monthly figure in excess of bare maintenance costs.  Although it is impossible to anticipate all expenses, some amount should be allowed for "major replacement" expenses.  To arrive at a realistic amount, consider how often the interior and exterior of your home will need repainting or refinishing, how often floor coverings such as carpet or linoleum will need replacing, how often electrical wiring or plumbing will need to be repaired, how often the furnace or hot water tank will need an overhaul, etc.   (f)  Landscaping   To estimate landscaping expenses, as well as the cost of maintaining the garden, remember to include the initial cost of landscaping equipment, such as lawn mowers, rakes, ladders, shovels, edges, shears, and hoses.    What can you Afford? ? Initial Expenses   We have considered the continuing expenses of owning a house once it has been acquired.  There are, however, several initial expenses that should also be considered.   (a)            Mortgage Insurance and Commitment Fees   Under Canadian Law, certain lending institutions cannot provide first mortgage financing in excess of 75% of the purchase price or lending value unless the mortgage is insured.  Mortgage loan insurance can be paid at the time of purchase or can be added to the value of the mortgage loan and paid as part of the principal.  Premiums range from 0.5% to 3% of the loan depending on loan to value ratio.  Application fees for mortgages vary depending on the lender but usually run from $75 to $235 and may or may not cover appraisal costs.   (b)            Legal Fees and Disbursements   A Lawyer's bill is comprised of two items:   (a)              fees for services  rendered to the client, and   (b)              disbursements which are charges for those expenditures made on the client's behalf to complete the transaction. (i.e.: funds paid to the Land Title Office to have the title transfer document or mortgage registered, funds paid to have searches done, money spent for obtaining photographs of all relevant documentation on file, etc.).     Legal fees are either calculated according to a "sliding-scale" or tariff system, or on a flat fee, according to the fee basis chosen by each law firm or each lawyer within the firm.  When inquiring on the amount of the fee, also check if the fee covers all services, or whether extra id charged for preparing or discharging a mortgage, and the amount of any "opening or closing file" charges or miscellaneous charges.      (c)     Appliance Purchase   This will depend on appliance you have on hand, and what may be included in the purchase.     (d)     Moving Costs             You should obtain quotes from two or more reputable moving companies, or arrange to do it yourself to save these costs.   (e)            Land Transfer Tax   is paid by the purchaser. The property transfer tax, calculated on the purchase price of the property being acquired, is paid by the purchaser.  The Land Transfer Tax is calculated on a "sliding-scale" tariff as follows:   Value of Property                             % or Flat Fee   $        0-$ 30,000.                                Base fee of $50. $ 30,000 - $90,000.                             .5 of 1% (.005) $ 90,000 - $150,000.                           1% $150,000 - $ 1 Million                          1.5%     Note that when calculating the transfer for tax, the applicable percentage amount is only chargeable at that rate for the purchase price that falls within that range.  The following is an example to demonstrate how the calculation is made, using a $70,000. Home as an example for this purpose.   Example:      0 - $ 30,000  base fee of  $ 60.  30,000. - $ 70,000.        (.005 x $40,000.*)  $ 200.    Total Land Transfer Tax                               $ 260.   *$40,000.  = Purchase Price minus Base Fee     (f)              Goods and Services Tax ? GST     The only things the tax department didn?t include were used residential properties, personal-use property, such as cottages and hobby farms, and land not purchased from a developer.  On the sale of new and substantially renovated residential housing, including the land component, GST does apply, however, there is a provision for a partial rebate.  The costs of related services, such as legal fees to register title will be subject to GST.   Because GST liability can be a confusing area and the cost of mistakes is high, if you are at all unsure, seek professional assistance.   (g)            Other Adjustmentsbetween Seller and Purchaser   The "Statement of Adjustments" covers these items.  This statement, detailing adjusting figures and amounts owed by both parties as of the adjustment date, is usually prepared by the purchaser's layers.  These items are additional expenses that are not included in the down payment.  Before committing your entire savings to such a down payment, you the purchaser should be aware of these costs.  These are usually reimbursements of expenses that the seller has prepaid on behalf of the purchaser.(e.g.: realty taxes and utilities).   Another example of the type of adjustment is the accrued interest during registration payable to the vendor.  If you are arranging a mortgage, the receipts of these moneys will be delayed until registration of the transfer is complete and title to the property is in the name of the purchaser.   Since the vendor has not received these funds at the time you took possession of the home, you pay interest on the unpaid balance at the same rate of interest as your mortgage.  This does not result in any increased cost to the purchaser, since interest on the mortgage funds does not begin to run until the bank has advanced the mortgage funds for use in paying out the vendor.    Offer to Purchase   Once the decision has been made to purchase a house and the price range has been determined, the purchase will be initiated by means of an "Offer to Purchase".   The offer to purchase is a written contract setting out the terms under which the buyer agrees to buy.  Upon acceptance by the seller, it forms a legally binding contract subject to the terms and conditions stated in the document.   The offer to purchase is, in most circumstances, an imposing pre-printed form.  Great care should still be taken to see that it outlines the transaction accurately.  Once the contract is in writing, a verbal explanation of what was meant, intended or understood, cannot be added, even in a court of law.   It is often believed that a printed contract cannot be altered.  That is not so.  Printing a contract is only for the convenience of the user.  If you disagree with something in the contract, alter it, delete it, or amend it, but do not ignore it.  When changes are made on the form, all parties should initial each change.   I will write up the offer to purchase on your behalf and submit it to the seller for consideration.  The seller is then at liberty to do one of the following:   (a)              Accept the offer: signing it in the form that is presented without alteration, or   (b)              Reject the offer outright:  refusing to sign, or   (c)               Counter-offer, by varying some term in the offer to purchase and sending it back to the prospective purchaser for approval.  As a purchaser, you ca now choose to accept, reject or re-write a new offer with a different price and/or terms.  I will assist you with this process as it can become very complicated.     The Deposit             The deposit serves two purposes:   (a)              It is part payment of the purchase price, which is the consideration for the sale and is, as such, one of the legal requirements for a contract.   (b)              It is a guarantee of performance.     The deposit is generally paid to the listing agent's company and held in trust, pending completion of the transaction.  After the transaction has been completed, the deposit is turned over to the seller as part of the purchase price.   The seller is entitled to keep the deposit if the purchaser is at fault for not completing the transaction, therefore the larger the deposit, the more appealing it is to a potential seller.     Subject Offers   There may be a condition precedence ("subject to" clause) in the offer to purchase.  If there is, there is not a firm contract for purchase and sale until that condition has been fulfilled or been waived by the party for whose benefit it was inserted.   The purchaser should consider a condition to the effect that the purchaser is entitled to terminate the agreement if the purchaser has not received a satisfactory report from an expert as to such items as-pool inspection, structure, building inspection, potability water in a rural area, etc.   Possession Date   The date on which the seller has contracted to give the purchaser possession of the house.  Since the purchaser can start using the house on that date, the purchaser assumes expenses from that date.  I recommend the exact time of possession be stated in the offer to purchase.     Fixtures and Moveable Property     Chattels                                            Fixtures (moveable items)                                       (non-moveable items)     Fridge                                           Built-in Fridge Stove                                            Built-in Stove Dishwasher                                  Built-in Diswasher Curtains                                       Curtain Rods Loose Laid Carpets                      Attached Wall-Wall                                                                         Carpet       Fixtures not specifically mentioned are automatically included in the sale price.  Chattels are not.   Should you, as the purchaser, wish to include chattels in the purchase, and in the purchase price, these items should be mentioned specifically in the offer to purchase as being included.  Identify these so the seller will not, for instance, take out the nice, expensive curtains you saw in the house and replace them with some older, or less expensive curtains that my be totally unacceptable to you!   Types of Mortgages   Conventional Mortgages   The rule for a conventional first mortgage is to allow a person to borrow up to 75% of the value of the lot and house.  The borrower will therefore have to supply at least 25% of the value to be able to borrow 75%.   High Ratio Mortgage Loans   Many conventional lenders provide high ratio mortgage loans.  In high ratio loans, the lender will insure the mortgage against investment loss if the borrower defaults under the mortgage and the lender suffers a loss as a result.   Insurance against investment loss should not be confused with life insurance.  It is not the borrower who insures against liability to the mortgage company, but the mortgage company that insures against loss in the event of default or loss under the mortgage.  The best known mortgage insurance companies are GE Capital Mortgage Insurance and Canada Mortgage and Housing Corporation (CMHC).   Mortgage insurance enables the conventional lender to lend up to 95% of appraised value (to a maximum of $ 175,000.) for single detached houses, duplexes, and condominiums that are purchased for owner occupation.     Mortgage Term   The conditions in mortgages may vary.  Some mortgages require no payment until the time that they are to be paid off, others require only interest payments and still others require both interest and principal payments.  The last type of mortgage is called an amortized mortgage. (A conventional house mortgage is an amortized mortgage).  The principal balance owing under an amortized mortgage is reduced with each payment.  If it takes 25 years to pay off the mortgage, then the amortization period of that mortgage is aid to be 25 years.   Term is the length of time a financial institution will lend money to the borrower.   Amortization refers to how long it will take the borrower to pay back the entire amount of the mortgage.   Do not confuse the ?term? of a mortgage with its ?amortization?.   Financial institutions want to negotiate the conditions (interest rate, payment amount) under which they lend you the money.  When a mortgage term is up, you must go back and renew your term to continue to pay off the remaining amount of your principal.   If you have a mortgage with a 25 year amortization and a 5 year term, this means that a financial institution will give you 25 years to pay off the full amount borrowed, but you must come back and negotiate the interest rate after 5 years.     Phrases in a Mortgage   These mortgage phrases are included in and form part of every mortgage which incorporates prescribed standard mortgage terms, either by an election in the mortgage form or by operation of the law.   Survey Certificate and Zoning Memorandum   The survey certificate (more accurately called building location certificate), includes a sketch and narrative by a qualified Manitoba land surveyor indicating the presence or absence of encroachments onto the property line or adjacent properties by buildings (your neighbor?s or your own).   The zoning memorandum or memo, is a  one page document form the City of Winnipeg Department of Environmental Planning, which indicates whether the property complies with the municipal by-laws or Town Planning Schemes as to yards and alignments.   These two documents are used together and in conjunction with each other by the lawyer to protect a purchaser from buying properties with significant encroachments requiring special permission from the City by way of a zoning variance, or even involving removal of some portion of a building on the property.  As well, the lawyer for the purchaser will be required to give an opinion to the purchaser's financial institution that the property complies with the zoning regulations, and that there are no significant encroachments, in order to assure the financial institution that the value of their security is not jeopardized in this way.   These documents will be necessary to receive the mortgage funds, and the cost of a new survey in Winnipeg averages $350. (plus GST) at the time of writing, with extra charges where the property has a swimming pool, and may be $400. to $700. outside of the city limits or on large properties.  The survey and zoning memorandum are a cost of the purchaser.  We can request the seller to provide one if available, but it is ultimately the purchaser/s cost.    Fire Insurance   The lender will require that the borrower carry fire insurance with loss payable first (for a first mortgage) to the first lender, second to the second lender, and so on.  It is the borrower's responsibility to carry insurance for a sufficient amount to replace the home.  The lender?s lawyer will require proof of such insurance before money is advanced.  Since the borrower, in most cases, makes the insurance arrangements, there will be no deduction from the mortgage proceeds.  The cost of obtaining such insurance should, nevertheless, be considered.   Appraisal Fees           The lender, before considering loaning money against a property, will want to appoint an appraiser and have an appraisal done.  This will show what the value is for the purpose of the mortgage ratios and that there is value in the security.   Credit Reports           Some mortgage Companies charge the borrower for the cost of obtaining credit reports and other such information.  These charges are usually relatively minor.   Processing Fees   Some mortgage companies may attempt to charge processing fees.  They rationalize this processing fee as being a reimbursement to them for administrative expenses incurred in processing the mortgage.  This is in essence a double charge as that is the reason interest is being paid, and should be avoided.  The processing fee is in reality only to increase the yield on the mortgage to the lender.             Mortgage Funds from your own RRSP   It is possible to borrow money from yourself.  Tax regulations now permit the owner of an RRSP to borrow mortgage funds for his or her own property from his or her own RRSP provided they have entered into an agreement to purchase or construct a home that:          is located in Canada.          was not previously owned by member or member's spouse.         is intended to be occupied as the member's principal residence not later than one year after acquisition.       Eligible homes include: detached houses, semi-detached houses, townhouses, condominiums, mobile homes, or apartments in duplex, triplex, four-plex or apartment buildings.  Shares in cooperative housing corporations also qualify.       Renovations or land purchases DO NOT QUALIFY for the program       Income tax will not be owed on the withdrawal, as long as it is repaid to an RRSP in equal installments over the next 15 years.   The repayments will not be tax deductible.  Revenue Canada sends Plan participants an annual statement indicating the annual deposit required.   Who can use the Home Buyer's Plan?   To participate you must be considered a First Time Home Buyer.  An individual qualifies if during the year of withdrawal under the plan and the four previous calendar years:          You do not own a home while you occupied it as your principal place of residence.         If the individual is married, while married the individual did not live in a home that was owned and occupied by the present spouse.     Do you have to take $ from one RRSP?   No.  You may withdraw from any number of RRSP's, with different institutions, as long as the total withdrawals do not exceed $ 20,000.   How do you "Repay" Money withdrawn from an RRSP?   You are requested to repay (to any RRSP) the amount withdrawn, without interest, in scheduled equal payments over a 15 year period commencing in the second calendar year following the year of their withdrawal's. Revenue Canada issues you an annual repayment schedule.  The statement provides:  the amount left to repay to the RRSP;          notice of the scheduled annual repayment, and           a summary of the prepayments made up to the date of the statement.   If you repay less than the specified amount in a year you will be taxed on the portion you did not repay.  If you repay more than specified, your payment in subsequent years in reduced.   If you die or become a non-resident, the balance which has not been repaid or taxed will be taxed as a lump sum in that year.  A surviving spouse can take over the repayment.   Do Repayments have to be made to the same Financial Institution the RRSP money was taken from?             No.  Except in the case where the agreement to purchase or construct the home is not completed (i.e.: where participation in the plan has been cancelled).  In this situation, the funds must be repaid to the originating issuer.   Do the Repayments affect my contributions for the year?             No.  You may continue to make yearly RRSP contributions and receive the tax deduction, as well as making repayments to the plan.  Repayment is not considered an RRSP contribution.     OUT OF TOWN BUYERS   Pre-Visit Information             On request:         Specific information of current sales and listings         Information relating to any special needs or interests ·        Local Maps ·        Transit information ·        Community Newspapers ·        School Information and telephone numbers   First Visit   ·        Accommodation arranged upon request ·        Airport/Hotel pick up upon request ·        Orientation tour of community and neighborhoods ·        Priority treatment and time allocation during your home finding trip ·        General information in new area construction   Offer Negotiation   ·        Assistance in satisfying offer conditions (i.e: financing, house inspection or appraisal) ·        Delivery/collection of documents relating to purchase   When Moving:   Contact the following with a change of address:    Utilities & Services                             ·        Electric  ·        Gas ·        Water ·        Garbage (special pick-up) ·        Telephone Service ·        Appliance Service ·        Cable T.V.     Publications   ·        Newspapers ·        Book, Video, CD Clubs ·        Magazines      Professional Services   ·        Doctor ·        Dentist ·        Lawyer ·        Your Real Estate Agent     Business Accounts   ·        Financial Institutions ·        Finance Companies ·        Credit Cards ·        Charge Accounts ·        Insurance Agencies ·        Home Delivery Services    Government & Public Offices   ·        Canada Post (Address Cards) ·        Family Allowance ·        Pension Plans ·        Unemployment Insurance ·        Provincial-Health & Hospital Insurance ·        Provincial-Vehicle Registration ·        Provincial-Operator?s License ·        Local Schools     Glossary of Terms     Amortization The period of time required to reduce a debt to zero when payments are made regularly.   Closing Date In most cases, the date which the sale of a property becomes final and the new owner takes possession.   Easement A right acquired for assess to or over, and perhaps use of, another persons land for a specific purpose such as a driveway or public utilities.   Encumbrance A registered claim for debt against a property, such as a mortgage.   Equity (Owner) The difference between the price for which a home could be sold and the total debts registered against the home.  Owner equity usually increases as the outstanding principal of the mortgage is reduced through regular payments.  Market values and improvements to the property also affect equity.   Foreclosure A legal procedure whereby the lender obtains ownership of the property following default by the borrower.   Lease The leasehold interest, if any, of the borrower referred to in the mortgage form.   Maturity Date Is the balance due date shown on the mortgage form.  On this date, all unpaid mortgage money is due and payable, or such earlier date on which the lender can lawfully require payment of the mortgage money.   Mortgage A mortgage is security for a loan on the property that you own.  It provides for your personal guarantee to repay the loan as well as a pledge of the property as security for the loan.   Mortgagee The lender who provides the mortgage loan.   Mortgagor The borrower who pledges his property as security for the loan.   Principal The amount of money actually borrowed.    Term The length of time during which you pay a specific interest rate on your mortgage loan.  You may not have paid off your entire mortgage principal at the end of a term because your amortization period will likely be longer than the term.   Title (Freehold or Leasehold) A freehold title is evidence of ownership of land and buildings for an indefinite period of time.  A leasehold title is evidence of a right to use and occupy land and buildings for a defined period of time.  In a leasehold arrangement actual ownership of the land (and perhaps the buildings) remains with the landlord.   Total Debt Service Ratio (TDS) The percentage of gross annual income required to cover all payments for housing and other such debts such as car payments.       This guide is intended to help the first time buyer with some of the basics of property purchase.  It is by no means complete and is not a legal document.  Legal counsel should be obtained by a lawyer.        When buying a home, consider the following:   I am committed to your success and I am pleased you have chosen RE/MAX.   This is just a list of some of the expenses that will be incurred with your purchase that you should be aware of:       1.     Mortgage Application Fee                                              $____________________   2.     Deposit at time of Offer                                                $____________________   3.     Property Appraisal                                                       $____________________   4.     Property Inspection                                                      $____________________   5.     Balance of Purchase Price                                              $____________________   6.     Legal Fees                                                                   $____________________   7.     Legal Disbursements                                           $____________________   8.     Property Survey                                                 $____________________   9.     Land Transfer Tax                                                        $____________________   10. Mortgage Insurance                                                      $____________________   11. Sales Tax                                                           $____________________   12. Adjustments for Fuel, Taxes                                          $____________________   13. Home & Garden Implements                               $____________________   14. Moving Expenses                                                         $____________________   15. Home & Property Insurance                                          $____________________   16. Utility Hook-Up (Phone, Hydro, Gas, etc.)                       $____________________   17. Re-decorating (Paint, Drapes, Carpet, Etc.)                     $____________________   18. Appliances                                                                  $____________________   19. Other Expenses                                                  $____________________   TOTAL:                                                                 $_________________     The above costs are only an estimate, exact figures should be verified by the purchaser.