Keep a Record of Your New Home Purchase

Home buying should be an exciting and enjoyable experience. It is also a legal transaction that involves a series of steps and a number of companies and service professionals. Keeping a record of the transaction from beginning to end will help to ensure that everything moves along smoothly and nothing falls through the cracks.

Buying a home is based on promises and agreements, which all need to be documented. As a home buyer, you should have a copy of every document that is part of the transaction. These documents may include all or some of the following.

• Your application for mortgage pre-approval, and the pre-arranged mortgage confirmation certificate from your lender. The certificate should include such details as the maximum amount you can borrow, the interest rate you will be charged, and the length of time the rate is guaranteed for. You also want to know how to proceed once you have signed the contract with the builder.
• The contract with your home builder. Always get a written contract setting out the agreement between you and your home builder. The contract should cover exactly what you are getting, in detail; where and when; and price and payment milestones.
• Fulfillment of contract conditions. The contract may contain conditions that have to be met within a certain time limit before you have a firm deal—mortgage financing or the sale of your existing home are the most common ones. Both you and your lawyer should get copies of any documentation related to the fulfillment of the conditions, and a copy should be forwarded immediately to your builder.
• Change orders and contract amendments. It is not uncommon to fine-tune some of the details or finishing touches on a home in progress. Home builders use change orders to keep track of any deviations from the original contract and will give you a copy for your file.
• Proof of third-party warranty. Professional home builders are registered with a new home warranty program in their province and will enroll your home in the program when you have a firm deal. Once your home is built, and you and your builder have conducted a satisfactory pre-occupation inspection together, the enrollment of the home will be finalized, and you will receive a certificate from the program.
• Estimates from your insurance company, movers, lawyer and others. The more you know about the final costs of the entire transaction, the better you can budget. Get written, detailed estimates whenever possible. How much will it cost to insure your new home? How many people, how many hours are included in the mover's estimate? What are the closing costs, including legal fees, disbursements, land transfer tax and registration costs? What other items must be dealt with on closing day?
• Your deed and mortgage documents. The deed is your proof of ownership of your new home. The mortgage document spells out the details of your financing arrangements with your lender. You will usually get these and other documents from your lawyer after closing.

Finally, it makes good sense to keep track of conversations, meetings and correspondence between you, the new home builder and everyone else involved in the transaction. Note down discussions and decisions. And don't ever hesitate to ask questions of your builder, or air any concerns you may have. Professional home builders have been through the process many times and are ready to offer their assistance and experience.