Purchase Documents!

Woohoo! You have an accepted offer! Now comes the fun part for us - submitting to the lender and getting you that conditional approval.

We will need a handful of signed documents along this process for the property you've purchased, along with some non-signed documents. These will all come from your realtor (and if you don't have a realtor in BC - check out this list of awesome ones). You can connect us with your realtor for these, or forward us the emails from your realtor with the items we need. 

 

First Up - The Contract & PDS

This contract is the most important one. It tells us the names of people on title, the closing date, the subject removal date, the purchase price and the deposit amount. A goldmine of information for us honestly. We need a copy of this that has been signed by everyone - sellers and buyers. 

You can see some samples below of parts of the contract, as well as part of the PDS

Just a note for those of you outside of BC - these samples below are specific to BC, and some of them may not even exist in your province!

 

purchase contract sample mortgage bc

#3 is where the "subjects" section may be found. This is where the "subject to financing" and "subject to inspection" clauses would be located traditionally. Some realtors put in more conditions than will fit in this space, and use an addendum instead to list the items. 

The PDS (Property Disclosure Statement) is a document provided by the seller that outlines information about the property they are selling. It is designed to disclose known issues or defects about the property, helping potential buyers make informed decisions before making an offer.
 

The PDS includes a series of questions that the seller must answer honestly, covering various aspects of the property’s condition.

PDS sample mortgage BC

Next, the MLS & Property Tax Report

The MLS report is an information sheet supplied by the realtor that the lender (and your broker/advisor) use to verify important information about the property such as the legal ID, age, address, water/sewer types, etc. 

Depending on where in BC you are there are different names for property tax reports. In the lower mainland, it's called a Folio, in other areas it's a report, or assessment. This shows the lender what the current property tax amount is, as sometimes on the MLS it's missing or a previous years amount is used and property tax is one of the amounts we use to qualify a person.

Samples below of what these may look like (the reports vary from real estate board to real estate board)

MLS Sheet Sample Mortgage Canada
Property tax statement mortgage canada example

Lastly, are you buying a strata property?
We'll need a whole bunch of docs there too.

strata form b sample mortgage canada
strata agm example bc mortgage

The lender will want specific strata docs, and we will get these from the realtor as it's usually a whole dropbox full of docs - but don't think these are just for the lender. These docs are VERY IMPORTANT TO REVIEW for you too. They tell you things like; the rules of the strata (like how many pets you can have) and if there are any big expenditures coming up (things that may have special assessments and require out of pocket payments). 

The lender will typically require specific strata documents to assess the property’s financial health and overall risk. These documents help the lender determine whether the strata property is well-managed, has sufficient funds, and if there are any potential issues that could affect the property’s value or your ability to repay the mortgage.

Here are the key strata documents a mortgage lender may require:
 

  • Strata Council Meeting Minutes: These minutes provide insight into the ongoing operations and decisions made by the strata council. Lenders will look for any indications of issues such as disputes, special assessments, or potential repairs that could affect the property’s value or your financial obligations

  • Strata Budget and Financial Statements: The lender will want to review the strata corporation's budget and financial statements (typically the last two years). These documents provide an overview of the strata’s income, expenses, and the financial health of the strata. Lenders will be particularly interested in the operating fund and the reserve fund (savings for future repairs or replacements).

  • Strata Certificate: The strata certificate is a summary document that includes essential information such as the strata fees, the amount in the reserve fund, any special assessments or arrears, and other key details about the strata property. This document gives the lender a quick snapshot of the property’s financial status.

  • Form B – Information Certificate: This document is a comprehensive report provided by the strata corporation that includes details about the property, such as unit size, the bylaws, any legal actions involving the strata, any unpaid strata fees, and the financial status of the strata. The Form B is critical in assessing any potential liabilities that could affect the property’s value or your ability to make mortgage payments. 

  • Form F – Certificate of Payment of Strata Fees: The lender will want to ensure that the strata fees are up to date and that the seller has paid all fees. This certificate shows that there are no outstanding strata fees or charges that the new owner will inherit.

  • Bylaws and Rules: The lender may request a copy of the strata bylaws and rules to ensure there are no restrictions that could affect your use or enjoyment of the property. For example, pet restrictions or rental limitations could impact your ability to rent out the unit or use it as you intend.

  • Insurance Certificate: The lender will need confirmation that the strata has the necessary insurance coverage. The strata corporation should have insurance for the building, common areas, and liability. The lender may require proof that the insurance coverage is adequate and current.

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