Posts Tagged ‘Toronto Realtor’

Multiply Listing Service (MLS): What is it?

Monday, July 12th, 2010

Heard of MLS? If you’ve ever dealt with a realtor, you surely have.Being a Toronto realtor gives me plenty of opportunity to work with MLS every day. Let’s have a look what this short abbrev stands for.

The fundaments of MLS

MLS stands for Multiply Listing Service or System - a database of all the real estates for sale in a certain area. Its purpose is to link a realtor working for the seller with a realtor working for the buyer.It comprise of all the information of the property the owner wished to make public, like address, size, location, number of rooms, and much more. Usually the local area and its services are covered too, with plenty of photos.

If I made it sound as if MLS was simply another list of properties not much different to let’s say a listing available on your realtor’s website, it’s not quite so.MLS has never been fully available to the public, because it has been created by the realtors and for the realtors.The information on the available property on various real estate blogs are not complete. You might get an idea about the property, but will always have to contact the realtor for more information in the end.

The history

The history of MLS reaches some 50 years ago when the “database” were bi-weekly updated ringed binders by the local board of realtors.The first “upgrade” of the system came up when the real bound MLS books appeared once a month with weekly updates.Only realtors paying the membership fees were entitled to the information in the system.The 70s made it a little bit more easier with the 3rd generation of the system: database stored in some central computer, which the realtors connected to by dumb terminals and phone lines.The use of PCs and Internet was the next logical step forward. So far last upgrade happened in the 90s and the system stabilized on web-based regional databases of today.

MLS of the future

You might encounter an opinion that the current version of the system isn’t good enough because it’s regional based, which isn’t enough.Particularly in the USA the discussing fellowship of realtors came up with the idea of another upgrade of the system to MLS 5.0, mainly by incorporating the functionalities of the ‘web 2.0′.The upgraded version of MLS should nationwide, be parcel based (holding information on all the property there is, not just oh those listed for sale) and should be more opened to customers, vendors and developers.No such system is currently being prepared in Canada.

So what does MLS have for you?

75% of property on sale are sold with the use of MLS.If you’re a seller, your property would never get that as much exposure as possible without MLS.For buyers it has a value as well: without MLS they would hardly get (through their broker) the complete information they need.Hence always ask your realtor if they have access to MLS of the region you have interest at.

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Your Offer Has Been Accepted: What You Must Do Now

Thursday, October 22nd, 2009

Once your bid for your dream home has been accepted, there is still so much to do before you can call the house trully yours. In the following article, an experienced Toronto realtor will identify the most important points of the process.

Once the offer has been accepted, your legal adviser should explain to you your obligations under the contract. The legal adviser should also advise you as to what expenses you are likely to incur with regard to the closing procedures, including Land Transfer Tax, disbursements and legal fees.

UTILITIES

The legal adviser will also send letters to all the concerned municipal or regional utility departments, in order to confirm there are no arrears or outstanding charges for gas, water or hydro expenses. These letters also verify if the equipment on the property is rented or owned and they also inform the various utility departments of the planned closing date, the new owner’s name and the name of the vendor’s legal adviser. These letters also request information as to the type of billing and if the billing is metered.

TAXES

Your legal adviser will require a Tax Certificate to verify the current year’s taxes amount and to find out any arrears and outstanding charges for taxes, both in the current year and in any preceding ones.

BUILDING & ZONING

The Building and Zoning Department will need to get involved as to the particulars of zoning by-laws and restrictions relating to the distance from the street and side and rear lines, type of construction, lot areas and building areas, lot frontage and depth requirements and permitted uses. Another letter is sent by your legal adviser to this department, along with a copy of the survey to find out all this.

TITLE & EXECUTION SEARCH

A Search of title to the property is commenced in the appropriate division of the Land Registry Office to establish whether or not the vendor is the owner of the property, whether or not he has the right to convey the property, and that the property is not subject to any encumbrances, encroachments, easements, liens, agreements or mortgages that were not disclosed in the Agreement or Purchase and Sale. Also an execution search is made in the appropriate Sheriff’s Office to make sure that there are no executions against the vendor or prior owners of the property that would affect your title.

FINANCING

All the initial searches we have just described are taken care of by your legal adviser. In the meantime, it is up to you to make all the necessary arrangements concerning the financial side of the business. Already before signing the Agreement of Purchase and Sale, you should have decided the amount of financing you will qualify for and the amount you will need to finish the transaction. On the day of closing, you might not be aware of all the costs related to mortgage financing. Your legal adviser can advise you of these costs when the financial institution that you chose provides you with a Mortgage Commitment Letter.

BEFORE THE DAY OF CLOSING

You will also need a certified cheque to verify the balance of closing funds to your legal adviser. Bring this with you when you come to sign all the documents needed a few days before the closing.

CLOSING DAY

Your legal adviser will arrange an appointment with the vendor’s legal adviser at the appropriate Land Registry Office to subsearch the title and finish the execution searches. They will exchange documents, keys and cheques and your legal adviser will make sure all the necessary documents are registered. After the documents registration, the vendor is entitled to get the money and you can get the keys from your legal adviser.

AFTER CLOSING

After closing your legal adviser will prepare a reporting letter to you certifying your title and explaining all aspects of the transaction. After moving in to your new place, it is a good idea to check all items that should be included in the purchase price according to the Agreement of Purchase and Sale, are indeed left on the property by the vendor. In case you find out anything is missing, get in touch with your legal adviser as soon as possible.

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