1. Found the home of your dreams? 2. Real estate fact or fiction 3. The right questions to ask before signing on the dotted line 4. Hiring a real estate professional? 5. Save money and be green with these energy saving tips

1. Found the home
of your dreams?
“Your home sold
or I buy it”
Save money and
be green with these
energy saving tips
FALL EDITION 2014

2. There is no shortage of information on the Internet about buying or selling a home, but finding local and objective advice that applies to you can be a real challenge.
The Real Estate Council of Ontario (RECO) is here to help. As Ontario’s real estate regulator, we protect consumers by ensuring that real estate professionals follow the rules and regulations that govern the sector. And, we provide consumers with objective information about the buying and selling process.
All sales professionals registered with RECO have met the standards needed to enter the profession. They are required to take continuing education courses to keep up with the latest developments and they participate in the consumer deposit protection insurance program. This means they are well equipped to help you with their knowledge and guidance during a real estate transaction.
RECO also provides consumers with information in a variety of places and formats about buying, selling and owning a home. For example, this newsletter, published twice a year, can help you learn how the real estate process works and what you can expect of your real estate professional.
Message
from
the Chair
By Glenda Brindle
It doesn’t matter if you are buying your first home or selling your fourth – being an informed consumer is critical to helping you ask the right questions and make the right decisions in what may be the largest transaction of your life.
There are other RECO resources available to consumers. I would encourage you to visit our website, www.reco.on.ca, which contains a section dedicated to educating consumers about the buying and selling process.
Our Facebook page
(www.facebook.com/RECOhelps) and our Twitter account
(www.twitter.com/RECOhelps) provide regular tips, and
our videos on YouTube
(www.youtube.com/RECOhelps)
give more in-depth advice from objective experts. And finally, check out RECO’s Ask Joe column that appears weekly in the Saturday Toronto Star’s homes section. Remember, an informed consumer is an empowered consumer. Knowing what you need to ask and what your registered real estate professional can do for you should lead to a positive experience when buying or selling your home.
2
reconnect · Fall Edition 2014

3. Finding a home that has the qualities you want and is
within your budget is no easy feat. But there’s lots more to
do before you move in.
Before you make an offer
These to-dos can be completed before or after you make
an offer, but getting ahead of the game is a good idea.
● Obtain a mortgage pre-approval to give you a good
idea of how much you will be able to finance for your
home.
● Hire a real estate lawyer in case you have legal
questions and so you’ll be ready when it’s time to
close the deal.
After your offer is accepted
These items should be added to your list once your offer
has been accepted.
● Satisfy any conditions included with your offer,
like conditional financing or a satisfactory home
inspection.
● Confirm financing by providing your lender with the
signed Agreement of Purchase and Sale. Your lender
may conduct an appraisal on the home.
● Ask your real estate professional, family or friends
to recommend a home inspector. There are also
associations for home inspectors that can refer you.
When selecting a home inspector, ask about their
training, experience, certifications and approach to the
home inspection process.
Here’s your to-do list.
If there is an issue with any of your conditions, you will
need to speak with your real estate representative and your
lawyer about your options.
If all the conditions are satisfied, you will have to sign
documents stating that each of the conditions are either
waived or fulfilled. The offer will then become firm.
● Once the deal is firm, your lawyer will help you close
the transaction.
● You might need to prove you have home insurance
before your lender will release the mortgage funds.
Planning your move
● If you’re renting, you’ll need to provide notice to your
landlord.
● If you already own a home, it’s a little more
complicated. Ideally the move-in date for your new
home will align with the date you move out of
your existing home. If not, you may need to get a
storage locker and stay with friends or family, or rent
temporarily while you’re between homes. You might
also need to talk to your lender about bridge financing
if you will own both homes for a period of time.
Throughout this process, your registered real estate
professional is a great resource. Make the most of their
expertise as you work through these to-dos. Just remember,
at each step of the way, you’re getting a little bit closer to
your dream home.
Found the home
of your dreams?
Fall Edition 2014 · reconnect 3

4. fact 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! 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. 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. 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. Real estate fact or fiction:
eight things you need to know before buying or selling a homeYou 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.
4 reconnect · Fall Edition 2014

5. 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 asking price. Other factors could be more important to 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 because they already bought their new home and don’t want to carry both mortgages. Having an open house can come
with risks if you’re not mindful. 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 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 information in a secure place. Have a sign-in sheet for all visitors. Ask your representative to have an assistant on hand to escort visitors at all times. It’s important to remember that it’s your home, and you set the rules for visitors. 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. A home inspection may find problems that could turn your ‘dream home’ into the nightmare you avoided. Carefully consider the risk of future expensive repairs before you skip an inspection. Given the risk, you might want to ask yourself, “Can I 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 systems. The inspector will help you assess the overall condition of 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 additional insights from the home inspector. If your conditional offer doesn’t firm up, you will automatically get your deposit back. If you do not waive or fulfill the conditions in your offer within the time allowed, the deal will not proceed. This means your deposit – which is held in a brokerage’s trust account – can be released only if both the buyer and seller agree, or if you obtain a court order. You should seek the advice of your lawyer and real estate representative before you decide to neither waive nor fulfill a condition. 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. Real estate professionals are regulated in Ontario. This means that anyone working as a real estate salesperson or broker must be registered with RECO and must follow the rules and a Code of Ethics. RECO’s job – with authority from the provincial government – is to protect home buyers and sellers. 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 take part in ongoing education to stay on top of emerging trends. They are also enrolled in an insurance program that protects consumer deposits. In short, you are able to draw on their professional knowledge and guidance as you engage in one of the biggest transactions of your life. “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.” For more information about these topics or to verify the registration of a real estate professional in Ontario, visit www.reco.on.ca
. 5 Fall Edition 2014 · reconnect

6. You’ve already bought a new
home and now the clock is ticking
to get your existing home sold.
A local real estate representative
has advertisements up around the
neighbourhood promising “Your
home sold or I buy it!” It seems like
the perfect fall-back plan in case your
home doesn’t sell as quickly as you
would like.
But before you jump at this
guarantee, make sure you understand
all the details involved.
Consider your finances
Keep in mind the price your
representative offers for your home
may not be the listing price or even
the amount you are expecting from
potential buyers. Will a lower sales
price on this home impact your ability
to close on the new home?
Do your research
As with any home sale, you’ll want
to interview the representative about
their approach to the selling process.
How will they market your home?
Do they have experience working in
your area? Have other sellers taken
them to be in your listing agreement.
By law, they will need to provide
a few additional details in writing:
1) disclosure of all facts that they
know of that affect or will affect
the value of your home, and 2) the
full details of any negotiations they
may have had to re-sell or lease the
property by them to another person,
including the prospective price.
Even when both parties are acting
in good faith, misunderstandings
regarding an oral agreement can
occur. A written agreement is the best
way to ensure that you and your real
estate representative are on the same
page. For additional peace of mind,
you can have your lawyer review the
agreement before signing.
Asking questions and understanding
all the details of your contract before
signing will help you make the best
decision possible for your situation.
advantage of the guarantee and
how has it worked out for them?
Be sure to ask for references and
contact those individuals, particularly
any sellers that signed or used the
guarantee.
For additional perspective, you should
interview several representatives
to gain further insights about the
value of your home and
ensure the representative
you choose is a good
fit for your needs and
expectations.
Get it in writing
If you decide that the
representative offering
the guarantee is the
best choice for you,
satisfy yourself that
all of the details of
this arrangement are
captured in writing
the way you want
Ask the right questions
You’ll want to get a list of all of the terms
and conditions involved. Key issues
include:
• Are there exceptions to the offer?
Does your home qualify?
• At what price will they buy your home?
How is that price established?
• After how many days of listing will they
buy your home? How many days after
that will the transaction close?
• Your listing agreement is with the brokerage.
Is the brokerage offering to buy your home
or is it the sales representative personally?
• Can you still try to sell the home while waiting
for the representative’s or brokerage’s
purchase to close?
• What happens if you change your mind
about selling to them? Is the “guarantee”
optional or do you have to sell to them if no
other buyers submit an acceptable offer?
• What is the commission arrangement
if the guarantee is acted on?
• Can the representative or brokerage confirm
that they have the financial capability to
honour the guarantee?
Your home sold
or I buy it
6 reconnect · Fall Edition 2014
The right questions to ask before
signing on the dotted line

7. HELLO
Agent
HELLO
Broker
HELLO
Salesperson
People talk about working
with an agent, a broker or
a salesperson. What’s the
difference?
It might seem like these terms refer to
the same role, but there are actually
some important distinctions.
“Agent” is often incorrectly used
to refer to the individual real estate
professional who helps you buy
or sell your home, but that’s not
technically accurate. Agent is actually
the term for the brokerage (the
company) that represents you. When
you sign a representation agreement,
you are forming an agency agreement
with the brokerage, not the individual
salesperson.
Brokers and salespersons are
individuals employed by the
brokerage. They’re both real estate
professionals who are subject to
regulation and must be registered
with RECO to trade in real estate
in Ontario. The level of education
distinguishes a broker from a
salesperson. A salesperson can
become a broker by taking additional
courses and exams.
Hiring a real estate
professional?
In Ontario, every real estate salesperson, broker and brokerage must be registered with RECO under the Real Estate and
Business Brokers Act, 2002.
Before you start working with a real estate professional, confirm that they are registered with RECO.
You can do that in one of two ways:
1 Use the registrant search feature available
on RECO’s website (www.reco.on.ca). 2 If the professional has the “MyRECO Certificate”
mobile app installed, they can display a special
QR code. Download the app on your iPhone,
Android or BlackBerry Z10 device and scan the
code to confirm their registration.
A broker designation also allows
someone to manage a brokerage.
If they do take on that role, they
are known as the Broker of Record.
Brokers of Record generally don’t
deal with buyers and sellers directly,
but they will be in the background
managing the business, reviewing
transaction details and serving
as a resource to your real estate
professional. In the unlikely event
that you have questions or concerns
that your salesperson or broker can’t
address, you can speak with the
Broker of Record.
Consumer Q&A
Did you know?
Fall Edition 2014 · reconnect 7

8. 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.
Install a programmable
thermostat to reduce your
heating costs
by up to
10 per cent.
Adjust the
temperature
based on
when you're
home, sleeping or away.
Save money and be green
with these energy saving tips
Fall is here, and that means it’s time to think about how to
save energy as the thermometer drops. Here are some
simple tips that will save you money and reduce your carbon
footprint.
Information courtesy of Ontario’s Ministry of Energy.
Seal up those drafts
by installing
weather
stripping
around doors,
attic hatches
and air
conditioners.
Change your
furnace filter
monthly. Also
consider having
your furnace
serviced to
ensure it’s running at maximum
efficiency.
Use your appliances off-peak
to take advantage
of lower energy prices.
In Ontario, off-peak
rates apply
from 7 p.m. to
7 a.m. if your
home has a
smart meter.
Unplug electronics
when they’re not in
use. TVs, computers,
cable boxes and other electronics
use small amounts of electricity
unless they’re unplugged.
Close off unused parts of
your home like storage rooms
and crawlspaces. It doesn’t make
sense to heat rooms that you
rarely enter.
And remember
safety! Test your
smoke and CO
detectors to ensure
they’re working
properly. If the
detectors take batteries, fall is a
good time to replace them.
Use energy-efficient
lighting
by replacing
burned-out bulbs
with energy
efficient compact
fluorescent or
LED lights.
Let natural light
shine by opening
your curtains to
sunlight during the
day. It’ll also heat
up your home.
Don’t let
faucets drip.
Repair leaky
faucets quickly.
Even a small drip
can waste litres of
water per month,
adding to your water heating
and usage costs.
Clean your
fridge coils
regularly
with a brush
or vacuum to
ensure they’re
operating
efficiently.
8 reconnect · Fall Edition 2014