Real Estate Lawyers Tillsonburg, Ontario

Not at all. True, it is expensive, but whether you buy insurance is up to you. 

Mortgage life insurance is not mandatory, but it does prevent your family or beneficiaries from suffering a potential foreclosure if they are unable to afford the mortgage payments on your matrimonial or family home when you die. The payout for mortgage life insurance is strictly the balance owing on your mortgage, and it goes directly to your mortgage lender. 

That clears the mortgage charge on the property title. Your estate trustee can distribute the home according to your Will, or a legally married spouse can file a survivorship application for exclusive possession.

Don’t confuse mortgage life insurance with mortgage default or loan insurance. That’s a guarantee offered by high ratio insurers like CMHC, Canada Guaranty, or Sagen™. It allows your lender to get their money back if you default on your mortgage due to job loss, disability, or any other reason. 

Is mortgage life insurance worth the expense? It’s useful to know the payments never change, even as your mortgage balance gradually declines. If that worries you, consider investing or buying general life insurance to protect your family instead.

That depends on your circumstances, which is why Axess Law Tillsonburg reviews your agreement of purchase and sale before you sign.

For instance, if you and the seller mutually agreed to return the deposit if you fail to get mortgage financing, it’s likely a simple matter of signing a release. Your real estate agent will return the deposit to you when the signed release is received.

Brokerages are required by law to keep your deposit in a designated trust account at a recognized financial institution. So if you didn’t agree on who keeps the deposit if a deal falls through, it will remain there. 

Although Axess Law Tillsonburg can negotiate with the seller’s lawyer to see if they will return the deposit, you could be in for a wait. Your other options are to forfeit it, or apply for a court order to have your deposit returned. Since offers to purchase are legally binding, unless yours is carefully worded, the judge may rule in the seller’s favour. Because going to court is expensive, weigh carefully if getting your deposit back is worth the time and effort.

Housing demand is fed by interest rates, and how many homes are on the market when you buy or sell. A hot market can make sellers less willing to negotiate, and vice versa. Of course, price isn’t the only consideration. Offering all cash, a firm offer with no conditions, or a quicker closing could win the day. 

Back to your question, why the discrepancy between sales and listing prices? Some sellers undervalue their homes to generate offers. Surprised buyers may be informed only closed bids are being accepted, or asked to counter offer because multiple bids have been received.

Tread cautiously if you become embroiled in a bidding war to get the home you want. Overbidding for a home may backfire if the property appraisal doesn’t match the amount you offered. You may have to put more down to make up the difference, or abandon your deposit. Legal consequences, like demands to compensate the seller for the inconvenience of relisting or storing possessions, may follow.

No system is fail proof. That includes lockboxes. A dedicated thief can thwart most security codes, just as they can electronically capture your door FOB’s signal from the street.

Newer models use a smartphone app, or electronic key that sends an infrared signal to the box to open it. Otherwise, your real estate agent gives out the access code when a viewing is arranged.

It’s up to your agent to verify who they give your code to. Ask them to change codes regularly, which can be done remotely with digital lockboxes, and avoid using easily guessed combinations like your street address.

Keeping a record of who received the code is helpful if anything goes missing. At the same time, take steps yourself to secure your belongings by:

• removing valuables or mementoes
• and placing prescriptions, bank statements, income tax returns, or anything that can identify you in a safe.