Frequently Asked Questions

After working with countless clients, over countless hours, with countless emails, calls and texts, we hear a lot of the same questions come up.

So we’ve collected those questions and answers here for you to review whenever you need.

The Seller’s FAQ

  • Your designated listing agent will charge a commission on the sale of your property, usually a percentage of total sale price. When you sign your listing agreement, we will discuss our fee & services and outline them clearly in the agreement.

  • We use a variety of methods to determine the value of your home, including local area market trends & comparable homes. Our approach is data-driven and numbers based so that when we come up with our value, we can back it up.

    When selling your home, we will review not only the market trends just for prices, we also review presentation tactics, pricing strategies & seasonal trends when we offer you our two cents.

  • As with most answers in real estate, the trust is it depends: on the budget you have available to you, how quickly you need to sell your property, if you want to make changes to your home and the state of the home as a whole.

    Some homes need no changes, while others require a small renovation to bring a home to it’s full potential.

    When we see your home for the first time, we will do a walk-through, review recent sold homes with you and look for opportunities to make the most out of your property to deliver the highest sold price.

  • We believe staging, whether that means arranging the existing furniture in the home to create the easiest flow of movement through the home, or bringing in a full household of furnishings, fixtures and decor, will increase the value of homes specifically geared towards end-users.

    Often buyers can have a hard time understanding how their furniture would fit in an empty space, or in a space with someone else’s personal items. We recommend decluttering and removing personal items at a minimum when selling your home, and together, we will determine the right approach for your home.

  • In preparation to sell your home, we will often recommend completing a pre-listing home inspection. Receiving the report in advance can give you a chance to update issues that may be identified in an inspection report, and can be helpful information to provide to buyers while they consider purchasing your home.

  • We will almost always recommend a fresh coat of paint in preparation to sell your property. It is one of the easiest ways to brighten up a tired space, making it feel clean & new.

  • If you’re considering hiring a friend or family member who is a REALTOR, we recommend interviewing them the same way you would any other agent. It is important to make sure you as a consumer have excellent representation to set yourself up for success when selling your home.

    When our hat is in the ring to sell a property, we will review our past work, recommended approach, marketing plan & answer all of your questions.

  • There are some fees you will need to pay as a seller, including your solicitor’s fees, your REALTOR’s fees and any other costs you might incur while preparing your home. We are happy to a provide a summary of potential closing costs to give you a clear picture of the costs you can expect.

  • We treat our listing presentations as interviews: we bring our resume, an outline of our approach, recommendations & communication strategies, and how we’d apply them to your specific property. At this meeting, you can expect us to talk through your vision for the process, and how we can tailor our selling strategy to make that vision happen.

  • A property listed on MLS, also known as the Multiple Listing Service, are shared with the public. They appear in websites available to REALTORs exclusively, on websites like realtor.ca and brokerage/agent real estate websites.

    Exclusive listings are homes available for sale off-market, without any public marketing.

    Some sellers may prefer to sell their home without listing it MLS for a variety of reasons, like their privacy, but most homes will sell faster, for more money and easier when listed on MLS. It’s hard to know something is for sale if you don’t hear about it.

  • A portion of the commission or remuneration outlined in the listing agreement is dedicated towards the Buyer’s Agent, also known as the Cooperating Agent. We will discuss the pros & cons of offering a portion of the overall commission to the Buyer’s Agent, and together we will determine the best plan for the sale of your property.

  • The simple answer: When it makes the most sense for the needs and wants of your life, lifestyle and family.

    The long answer: Sometimes you will have time to wait to sell your home in historically seasonal busier markets, like the Spring or Fall, and sometimes we need to move quickly to get your home to market. No matter when we need to hit the market, we will make sure we are presenting your property in the best light to get the best price we can.

The Buyer’s FAQ

  • In most cases, no.

    When working with a REALTOR, you can decide if you want to work with them exclusively, in a limited services agreement (like for a specific home, or a short period of time), or represent yourself as a Self-Represented Party.

    In all cases, you will need to decide how you would like to work with them after receiving the RECO Information Guide, and formalizing your relationship with a representation agreement at the earliest opportunity.

    By working with one specific REALTOR, we commit our time, effort and attention to you, both to provide excellent service and because it is our legal obligation to work in your best interest once a representation agreement has been signed.

    If you do work with more than one REALTOR at a time in the same area for the same product, you may be on the hook for covering the commission of each of your agents when you purchase a property.

  • As soon as you’ve decided you’d like to move forward with your REALTOR, you’ll need to sign a Buyer’s Representation Agreement, or BRA for short. Within the BRA, we’ll outline the length of time we will work together, the boundaries of your search & property type we are hunting for, as well as how our commission works and how much. We will also outline the services we’ve promised to you so everyone is on the same page.

  • Often, the Buyer’s Agent will be paid out of the commission paid to the listing brokerage by the Seller. This commission comes out of the sold price of the home, and is often a percentage of the sold price.

    This means, often, the Buyer will not need to pay their agent any additional fees on top of the purchase price of their new home.

    However, there are times when a Seller & Listing Brokerage will not offer the Buyer’s Agent a portion of the commission the Seller is paying to the Listing Brokerage. In a case like this, the Buyer would need to cover their agent’s fee as outlined in their Buyer’s Representation Agreement, or BRA, as one of their closing costs.

  • Getting pre-approved for financing the purchase of a property is one of the best ways to determine your budget. A pre-approval is a quick step that will require some personal information from you, and we always recommend speaking with a mortgage broker before beginning your home search.

    You can expect us to ask to see a copy of your pre-approval when we begin our search to make sure we are showing you homes within a realistic budget set out by your potential lender.

  • A bully offer is also known as a pre-emptive offer, and is usually an aggressive, firm offer - an offer so good the seller can’t refuse. Some sellers will be open to receiving pre-emptive offers when deciding to set an offer date, while others will decide to wait it out.

    If a Seller does receive a bully offer, they will need to let buyers know who have shown interest and toured the property to give everyone a fair chance to throw their hat in the ring should they so choose.

  • Holding an offer night usually involves listing a property and allowing showings, and holding off reviewing any offers until a specific date and time. This can allow buyers to look at the property a couple times, do their due diligence and decide if they’d like to submit an offer without rushing.

    Accepting offers anytime tells buyers that the seller is willing to review any offers that come in, often on a first-come, first-serve basis.

    Depending on how the market activity is, how buyers are searching for properties, and strategies that are seeing success, we tailor our offer strategies based on Seller’s expectations and the competition.

  • Anytime we make an offer, we give the Seller a deadline to make a decision - to accept our offer, decline it, or counteroffer. Once the irrevocable time has passed, if nothing has been done, no agreement has been made, or no extension has been granted, the offer will expire and will no longer be valid.

    To restart negotiations, a new offer will need to be submitted, and any agreement will need to made within the irrevocable time outlined.

  • A status certificate is a document requested from Seller’s with a condominium available, and outlines the financial health, plan & resources a Condominium Corporation has on hand. The Status Certificate is often made up of multiple documents, including an operational budget, an audit of the reserve fund, a summary of issues like lawsuits active against the condominium, and much more.

    It is a critical step within any condominium purchase to have your lawyer review the status certificate before your purchase becomes a firm deal.

  • We use a variety of methods to determine the value of the homes we are considering, including local area market trends & comparable homes. Our approach is data-driven and numbers-based so that when we come up with our value, we can back it up.

  • We will often encourage our buyers to speak with a Mortgage Broker because of their access to more products, more rates, more lender types than a traditional bank will have. Where a bank can provide you with a pre-approval rate based on their own products, a mortgage broker is not tied to a specific lender.

    We are happy to provide you with a few recommendations for Mortgage Brokers that we’ve worked with in the past, and have delivered on the promise they make.

  • Within your offer, you will specify a specific amount to put down as a deposit, either delivered with your offer or within 24 hours of an accepted offer, which will sit in the Listing Brokerage’s Trust account until closing has been completed.

    Your downpayment is the total funds, including your deposit, that you will be using to purchase your home, and the balance of your purchase will be funded by your lender. These funds are due on the closing day.

  • While there is no set amount for a deposit when purchasing a new property, we generally recommend to put down at least 5% of the purchase as your deposit.

    Your deposit can be a tool to strengthen your offer, along with your offer price, closing date, conditions and other considerations.

  • There are some instances where your deposit can be refunded to you if the deal does not move forward, including a condition not being fulfilled, and in those cases, your deposit will be refunded in full without deduction - generally within 10 business days of the request for refund.

    Once a deal is firm however, it can be very difficult to recoup your deposit should the deal not move forward, and if you as a buyer cannot close or are in default of the agreement, you will in most cases be required to forfeit your deposit.

    We work with our buyers to make sure they are as protected as possible, within their agreement terms, as well as guiding them through the process so they fulfill their obligations and never going into default. When you are our buyer, your needs are our needs.

  • Once you are under contract for your new property, your lender will schedule an appraisal be done to confirm the value of the property to move forward with lending you the agreed amount for the specific properties.

    Your financing amount is not only based on your personal financial picture, but also the value of the neighbourhood, the home, the structure itself, and potential improvements that may be required, among other variables.

    Our valuation methods are meant to give you confidence in the value we’ve come up with, not just so you know the right price for the specific property, but also so we can support our purchase price to a lender should they need additional support.

  • When putting together an offer for a property, we will review the terms of the offer, including the purchase price, closing timeline, and any conditions you may want to include. We will review the pros & cons of including a condition to secure appropriate financing, to complete a home inspection, asbestos and/or termite inspection, review financial documents like a status certificate or to secure insurance for the property.

    Other conditions can be included for a range of concerns that could come up with a property, and we tailor our offer plan & strategy based on your needs as a buyer, the seller’s wants & the competition we are up against.

The Investor, Builder & Pre-Construction FAQ

  • A cap rate, or Capitalization Rate if you’re fancy, is the rate of return a property generates based on the net operating income. It is a tool to determine the potential return a property can generate. A higher cap rate usually indicates a higher risk, and vice versa for a lower cap rate.

    To determine the cap rate, divide the net operating income by the current market value of the property.

  • Capital gains tax is generally applied to 50% of your profiles made from selling an asset for a profit. This tax can be applied to property sales, unless the home is your primary residence.

    What this means in practice is say you buy a property for $500,000, and then sell it the following year for $550,000. Your capital gains would be $50,000, and a 50% capital gains tax, you would need to add $25,000 to your taxable income for that year.

  • Toronto is a diverse city centre with a consistent, constant influx of new people moving to Toronto. As the capital of Ontario, Toronto is widely regarded as an incredibly diverse city, filled with close-knit communities, each acting as their own little town. Our transit infrastructure has been undergoing major upgrades for the last decade: finally, the Eglinton LTR is close to opening, connecting East & West in the GTA and the Scarborough Extension construction is underway.

    Toronto is also home to the University of Toronto, Toronto Metropolitan University (formerly Ryerson University), George Brown, Sheridan, Humber and more educational institutions - too many to count.

    Every day Toronto grows, and the opportunity to invest in property here grows with it.

    To help encourage and support that growth, the City of Toronto has recently passed inclusionary zoning, permitting multi-unit properties in areas they previously were not allowed. A huge opportunity has opened up in Toronto that has never been available - building laneway homes, garden suites & multi-unit homes across the GTA.

  • Do you have more money than time, or more time than money?

    Hiring a property manager can alleviate some of the stress from managing a rental property, especially if you don’t live in the same area. Some services can includem coordinating with your tenants, helping maintain the property and dealing with emergencies. Hiring a property manager doesn’t remove your responsibility as a landlord, but it can make the job easier.

    Without a property manager, you’ll need to be prepared to take care of everything yourself, and you’ll be saving yourself some money.

    Depending on your goals & wants, one strategy make work better for you than the other, and we can help you figure that out.

  • Due diligence, due diligence, due diligence. Should we say it again?

    Due diligence.

    When we help you list your property for lease, our team completes a thorough due diligence process whenever we receive an offer, including a look at an applicant’s financial, employment & housing histories, reference checks, and our skills from our teenage social media sleuthing days. We want to see a history of steady rent payments, steady & secure employment, and sufficient income on top of glowing personal & past landlord references.

    We also recommend staying up to date with news from the Landlord Tenant Board, and getting to know your role & responsibility as a landlord.

  • Buying a home at a pre-construction project generally involves looking at different floorplans while trying to find where the unit is on the scale model at the sales centre.

    The builder will hire a team of realtors to help sell the project, and we recommend bringing your own REALTOR to the party if you’re considering a pre-construction unit - one that is experienced in the New Construction industry. Once you’ve selected a unit, your agent will help you work through the Agreement of Purchase and Sale, deliver your first deposit and have your lawyer review the purchase documents before the Cooling period expires.

    As you move through the waiting period between purchase and closing, which can be upwards of 4 or 5 years, you’ll be expected to deliver deposits on a set schedule, pick your finishes & any structural upgrades, and to see the unit for the first time a month or so before you get the keys. Getting the keys doesn’t mean you’ve closed the transaction, however - the period between getting your keys & the final closing date is called Interim Closing. Closing occurs when every detail in the building is finished and inspected by the city.

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  • Right after you sign the Agreement of Purchase and Sale for a pre-construction unit, you will have 10 days to have your lawyer review the contract and to make request or changes to the agreement. There can be negotiations back and forth between you and the builder during this period, usually handled by the agents, and can be a time to talk about closing costs, potential incentives and more.

  • To qualify as a buyer for a pre-construction property, a builder will often require a pre-approval letter from your lender, or a statement of assets to show you have the funds to cover the purchase.

    We always recommend speaking with a Mortgage Broker before making any kind of Real Estate purchase so you know exactly what your options are.

  • The TARION Warranty program is mandatory for all new homes in Ontario, and covers homeowners for a variety of issues. TARION provides guidelines for key notices & critical dates to keep you informed about the construction of your new property. When your new space is ready for occupancy, you’ll get to inspect the unit before moving in with a Pre-Delivery Inspection, and a series of warranty claim deadlines ranging from the first month to 7 years. The warranty covers finish issues, structural issues and support resolving disputes between consumers & builders.

  • In 2023, Toronto introduced the Vacant Home Tax, imposed on homes that are vacant for 6+ months of the year. While the Vacant Home Tax was introduced at 1% of the property’s assessed value, and in 2024, is being raised to 3%.

    Property Assessments were reevaluated in 2024, increasing Property Taxes for many Torontonians, and effects the total amount your Vacant Home Tax is calculated.

    Vacancy Declarations are due at the end of February each year and everyone must complete a declaration, whether you live there or not.

    You can submit your declaration here: https://www.toronto.ca/services-payments/property-taxes-utilities/vacant-home-tax/

The Landlord’s FAQ

  • Due diligence, due diligence, due diligence. Should we say it again?

    Due diligence.

    When we help you list your property for lease, our team completes a thorough due diligence process whenever we receive an offer, including a look at an applicant’s financial, employment & housing histories, reference checks, and our skills from our teenage social media sleuthing days. We want to see a history of steady rent payments, steady & secure employment, and sufficient income on top of glowing personal & past landlord references.

    We also recommend staying up to date with news from the Landlord Tenant Board, and getting to know your role & responsibility as a landlord.

  • Sometimes, in an overly competitive market, tenant applicants may offer more month-worth of rent payments upfront to strengthen their application against other offers. There are a variety of reasons why a tenant may take this approach, and as a Landlord, it’s important to know that it is illegal to request for any rent upfront other than the first & last month’s rent deposit.

  • No, you may not require a tenant to provide post-dated cheques as a landlord. Often landlords & tenants will come to an agreement of how rent will be paid, more often done by e-transfer these days, when the Ontario Standard Lease is completed.

  • Unless another current resident of the unit has a serious allergy to the pet, you cannot stop a tenant from having a pet. It is a fair expectation for a tenant to be responsible for any damage their pet causes, just like they would be responsible for covering any other negligent damages.

  • In a time where we hear stories about tenant vs landlord disputes, damaged property, unpaid rent, we will always tell you if we have a concern about the validity of a tenant’s application.

    In our opinion, a better quality applicant with secure, steady employment, a clear history of paying their rent on time, strong credit and good references win over more money & a bad profile. A good tenant who will care for your space will be less likely to be a headache in the future, and reduce the potential costs needed to prep the property between tenants moving in & out.

    That extra $50/month might not cover potential damages done by a bad tenant.

  • You cannot evict a tenant to sell a property, and we encourage you to have open communication with your tenants if you are considering selling your property. Who knows? They may even be interested in buying the place!

    It is important to let tenants know if your Buyer is planning to move in to the home themselves, however, as tenant’s can be evicted for personal use with the proper notice & consideration of the rental terms.

  • If you are having issues with your tenant, like they’ve stopped paying rent or damaged the property, we recommend speaking with a Paralegal who specializes in rental disputes. There are other legal reasons to evict a tenant, including moving in yourself, however you will need to make sure you are following the proper procedures & delivering the appropriate notices as set out by the Landlord Tenant Board.

    Evicting a tenant can be a long process, and we always recommend speaking with a paralegal if you are considering traveling down this road.

  • If you are having issues with your tenant, like they’ve stopped paying rent or damaged the property, we recommend speaking with a Paralegal who specializes in rental disputes. You will need to make sure you are following the proper procedures & delivering the appropriate notices as set out by the Landlord Tenant Board.

    Evicting a tenant can be a long process, and we always recommend speaking with a paralegal if you are considering traveling down this road.

  • You do have the right to show your property, for sale or lease, at anytime, as long as you have provided the appropriate written notice to your tenants.

    We always recommend coordinating with your tenants if you do decide to put your property on the market to schedule showings at a time that works for them, and to ensure everyone is on the same page for keeping the property ready for showings.

  • Yes, as a landlord, once a property has been leased, you will need to give your tenants 24 hours written notice before stopping by the property. Your new tenants have the right to quiet enjoyment of the property, so we recommend keeping visits infrequent, but regular, and brief, and to maintain a open dialogue with your tenants.

    This is a long term relationship with someone you are trusting with a large asset.

  • In Ontario, rent increases are limited to a maximum of 2.5% in 2024 on homes that were occupied on or before November 15, 2018. Rent increases are permitted once per year with the appropriate notices. There is no rent control on homes occupied after that November 2018 date.

The Tenant’s FAQ

  • Using a REALTOR to help you find a new home, whether you are buying or selling, is one of the best ways you can make sure your needs & best interests are covered in your lease.

    Your REALTOR will help you search for properties, offer advice and guidance throughout the process on neighbourhoods, market activity and putting in an offer, and land you with a successful lease.

  • When you complete your Tenant’s Representation Agreement at the beginning of the search process, you will agree upon the commission your agent will be paid to help you find a new place. Often this commission is covered by a portion of the fee the landlord pays to the Listing Brokerage, and you as tenant won’t feel this cost on top of your rent payments.

  • When you’re ready to make an offer, you will need to pull together a rental application with supporting documents. As part of our process to onboard our Tenant clients and qualify them, we require these documents in advance of any showings being completed. This gives us a chance to make sure your budget is realistic, and that you are putting your best foot forward as an applicant.

    This application package for each tenant includes: (1) valid government issued photo ID, (2) a current employment letter/record of employment, (3) a full credit report with the score and history outlined from either Equifax or TransUnion, (4) your last three paystubs and/or bank statements, and (5) a completed rental application (we’ll provide this) with references.

    Once we have our representation agreements in place and the full package of supporting documents in hand, we can get started on showings.

  • If your landlord sells the property while you are still a tenant, the new owner will inherit your lease agreement unless they want to move in themselves. Buyers are allowed to require tenants to move out if they want to move into the property, and will be required to provide the proper notices and honor any fixed terms to be completed.

  • In Ontario, rent increases are limited to a maximum of 2.5% in 2024 on homes that were occupied on or before November 15, 2018. Rent increases are permitted once per year with the appropriate notices. There is no rent control on homes occupied after that November 2018 date.

  • You can ask, absolutely, but it does not always guarantee that a landlord will say no.

    We often will include any requests like this within our initial offer and do our best to try to reach an agreement with the landlord when representing your needs.

  • No, unless it’s an emergency. Otherwise, your landlord will be required to give you 24 hours written notice for any general visits or inspections. If your landlord decides to list the property, meaning showings may occur, we generally recommend keeping an open dialogue with your landlord and communicating your needs to accommodate showings. It is important that you as a tenant keep the space clean & tidy during showings, and work with your landlord to help the process run smoothly.

    Often we see good tenants kept by new owners, especially when they have shown they care for the property, pay their rent and are responsible, respectful, pleasant neighbours to work with.

  • While you can offer on more than one property at once, we strongly advise against doing so. If you have more than one offer accepted at once, you will be legally on the hook to follow through with those agreements.

  • If you get written permission from your landlord, you can make agreed-upon changes like painting. But remember, you need to get their permission first.

  • Just like painting the place, you will need to get written permission from your landlord before you try to sublet or assign your lease to someone else if you need to move out. Your landlord cannot arbitrarily say no to your request, however the new tenant will need to be qualified and approved using the same process you went through when you moved in.

  • Yes. When you offer to rent a property, you will be required to provide first and last month’s rent upfront - as payment of your first month and a deposit of your last month’s rent.

    Your last month’s rent deposit is applied to the last month of your tenancy - so when you actually move out - and will be subject to any rent increases that occur during your rental period.