Have you ever wondered how to smoothly transition from an old house to a new one? It's not unusual for people to worry about coordinating with the expiration of a lease or the sale of an existing home. But don't worry because we've got you covered!
Coordinating a Closing
Moving between homes requires careful communication and timing. This is especially true if you're moving from one rented place to another or selling your current home. Strike a balance with your leases' expiration dates or get your present place sold before your new one.
Dealing with Lenders
Sometimes, things don't go according to plan, and you might end up needing to stay just a bit longer in your old property. Many lenders may not be comfortable with even a mere one-month leaseback. Why? Lenders consider it as turning your property into an 'investment property' rather than a 'primary residence.' Sounds silly, doesn't it?
Here's a workaround: on the same day, when you sign the Agreement of Purchase & Sale, also sign a one-month lease agreement. Need to close by August 1st while the seller wants to stay up to September 1st? Close the deal and let the seller rent!
But, take note: this can’t be included in the Agreement of Purchase & Sale. It adds uncertainty when you don't know when your property may sell. And it's stressful. That's why flexible closing options are appealing. Consider a leaseback if possible.
Giving Notice to Tenants
Sad news for tenants: when the house you're living in sells, you need to move out. The new homeowners are probably going to live there. Your landlord must give you a 60-day notice from the first of the month that your tenancy is ending.
For instance, if your house is sold on April 4th, the notice starts on May 1st. So, you'll have until August 1st to find a new place. That's enough time, right?
Tips for Home-Buyers
Are you a potential home buyer in the GTA, Milton, Mississauga, Georgetown, Guelph, or Action Markets in Ontario? We've gathered the top tips to help you have a smooth home-buying process.
- Make sure to communicate your needs during the negotiation process.
- Try to coordinate the closing date with your current lease expiration or the sale of your home.
- Consider a leaseback option if timing doesn't work.
And that's it! Home-buying doesn't have to be stressful. Prepare, communicate, and negotiate! Need more assistance? Download your free Buyer's Guide here and save $10,000 to $50,000 guaranteed when buying a house with us!
