The Real Estate Council of Ontario is now joining the chorus of those asking both homebuyers and investors to do their homework before leaping into a rent-to-own deal with any third party.“If a deal seems too good to be true, it probably is,” says the regulator’s registrar Joseph Richer. “As with any real estate transaction, it’s crucial for consumers to do their research before entering into a contract.”
The warning comes on the heels of media reports this summer that homebuyers have lost money and even been evicted from their homes. Incidents of investors, or homeowners looking to sell, have also made headlines across the country this year.
“Asking questions beforehand can help to prevent these unfortunate scenarios, and a registered real estate professional can help,” Richer adds. “RECO recommends that consumers conduct an online search of the company and the individuals in charge, ask for references, and see if they have a history with the Better Business Bureau.”
The registrar is also recommending parties to these growing number of deals seek independent legal advice before signing a contract so they’re up to speed on any and all possible outcomes.
Hiring a registered real estate broker or salesperson could also be part of that action plan, he says.
“A broker or salesperson has a duty to look out for their clients’ interests as they help them navigate the buying process,” according to RECO. “In addition, they must adhere to regulations and a code of ethics, and they are accountable if something goes wrong.”
Courtesy of: Canadianrealestatemagazine.ca
“We completely support this recommendation by RECO. Education is key in a rent to own. This is the reason behind writing Rent to Own: Essential Guide for Homebuyers
.” – Neil Oliver, Clover Properties
“Due dilligence is key. Besides researching the company online, be sure to set up a face to face meeting as well. A company worth it’s word will meet without charging a fee and it is a great way to determine whether or not you will have “chemistry” with the company or individual helping you with the rent to own.” – Rachel Oliver, Clover Properties
Buying or selling a home is a major financial (and emotional) undertaking.
Believe it or not but a real estate agent is more than “just” a sales person. They are trained professionals whose goal is to act on your behalf and provide you with a clear understanding of the legal concerns and potential issues that could arise with the different properties that you will view.
We only work with reputable real estate agents so you can trust that your best interests will be served. Our goal is to ensure your buying experience is a positive one.
Negotiating the right price
One of the first things a real estate agent presents a buyer is a competitive market analysis (CMA). The CMA is study of the current market trends and recent sales in the area where the house you would like to purchase is located. The real estate will use the CMA to negotiate a fair deal for the property.
Matching Your Needs to Properties
The real estate agent will use resources at his disposal to weed-out properties that do not match your requirements and help you shorten you search cycle. There is nothing worse than looking at 100 homes, none of which meet the criteria on your wish list.
Agents usually have a better understanding of what buyers can get for their money in the neighbourhood they want to buy into. An agent will also have important information about the neighbourhoods, including schools, shopping, property taxes and demographics.
Maybe most importantly, an agent can help complete the purchasing and closing documentation. Once an offer has been accepted, your agent may arrange for a home inspection, financing, a title search and a real estate lawyer, as well as ensure that all repairs and stipulations in the contract are completed.