PEI Real Estate - Prince Edward Island - Nora Gravel

BUYING a home can be one of life's most fulfilling experiences and one of the most challenging. The more prepared you are at the outset, the less overwhelming the buying process will be. From selecting a real estate professional to finding out what type of home you can afford, as a CENTURY 21Ž realtor I can help take the anxiety out of buying a home. Call me, and allow me to explain to you all the different services I can offer.

Don't forget to check out how you can earn AIR MILESŽ reward miles with your real estate transaction.

Information for non-residents/overseas buyers (non-islanders). If you plan on moving, relocating and purchasing a residence or commercial property please read information below. This also applies to recreational and high-end property (luxury estates/cottages/businesses etc.). Investors take note. There is a wealth of information below.

Century 21 Northumberland Realty (1987) Ltd. has been awarded number 1 for sales and volume of sale for the City of Summerside and area for 2006 and 2007.

Limited Dual Agency: When a Realtor/Real Estate agent is representing both the buyer and seller in an unbiased fashion for the entire transaction. Sellers Agency: A Realtor represents just the Vendor Buyers Agency: A Realtor represents just the Purchaser Of course both agents on the Sellers and Buyers end will have to agree and negotiate for both their clients.

Date of Possession: Just after the closing. The actual date you become owner of your new home/residence/cottage/ business. This has to be negotiated between the agents who in turn discuss the information among the purchaser and vendor. It could be immediate if the property is vacant/empty or between 1 to 3 months. This date is to be negotiated when an official offer has been accepted.

Listing Agent: The most confusion. I can sell any property listed with any agent at any time no matter what other name or other company name is written on the sign.

Commission: The Purchaser/Buyer pays for the entire commission. The amount is divided amongst the brokers, sellers and buyers agent.

Listing: The Realtor/Real Estate agent only gets paid a few days after the complete closing of the sale. Their salary is 100% commission and their broker(s) take half +/- amount/portion of their salary plus any additional fees. The myth is that a Realtor/Real Estate agent gets 100% of the commission. This is totally false. It is divided among many individuals.

REALTOR/Real Estate Agent: At Century 21 Northumberland Realty (1987) Ltd., Realtors pay for 100% all their advertising including: TV Ads, Real Estate Book, news paper advertising, internets site(s), domain names, technical costs, hits on their sites/month, mass mailings, brochures, business cards, courier service, marketing plan, Open house signs etc. We also pay fees for CREA and MLS fees per month and the following is mandatory: yearly bond/license and Errors and Omissions Insurance. Real Estate agents are bonded and insured.

Water Test: A house will not close without an official water test that has been approved. The vendor usually pays for the water test.

Insurance on Homes/Businesses: A house/business will not be insured without an adequate furnace system conformed. Both the furnace and the flues must be in great working order. The flues are now 16 inches.

To be Sold As Is Where Is: You accept the house/property as is with no legal guarantees. For example: There is no furnace, oil tank nor flues and the house needs new windows. The purchaser is aware and agrees to purchase the house/property as is. The vendor is not responsible to put in a new furnace/oil tank nor flues nor new windows. It is up to the new purchaser/buyer. Same applies to a leaky roof, plumbing and electrical. etc.

The most important factor is to hire a lawyer and your banker on Prince Edward Island eases the transaction immensely.

Hire a lawyer from PEI which enables ease of title search, deed, registration, adjustments, oil tank, and legal fees. Verification of any easements/encroachments etc. Houses/cottages/recreational properties etc. or Commercial properties. The lawyer will go over inventory and financials too.

Legal fees are separate from the research. Lawyers represent the buyers and sellers separately. I do not recommend using the same lawyer for both the buyer and seller transaction of the Agreement of Purchase and Sale and Schedule "A".

A lawyer may accept representing both the purchaser and vendor. This may be done and accepted by signing a document and both parties (purchaser and vendor) must agree.

Make sure your Agreement is well worded: Schedule "A" contains list of inclusions and exclusions. Have your real estate agent/Realtor write the items out. This is simple: Inclusions - what stays with the house/business.
Exclusions: What does not stay. What the vendor is keeping or not leaving. Do not take verbal\ agreements. Each item should be listed and signed by the vendor and purchaser. If the items go in the hundreds, than the vendor can write a list of exclusions: List of what they will be taking. Sometimes, the vendor is relocating or leaving the country and does not want to keep/bring everything.

Oil Tanks. Since 2007 it is mandatory for all oil tanks to be tanked or the oil tanks companies will refuse to fill up the tanks. This simply means that the oil tanks need to be tagged and updated. There is a year stamped on the tag. For example: An oil tank may be in working order until 2015. In the year 2015 a new oil tank will need to be purchased to replace the old tank. This is done to prevent rusted oil tanks that are too old.

If the oil tank is empty at the time of purchase it is the responsibility of the new purchaser/buyer to refill the tank at their own expense. The rule of thumb is if the tank is filled by the vendor (topped) off with a receipt from the oil company, then the purchaser will pay for a full tank which ranges depending on the amount of gallons of oil. For example: A tank for a 2.5 storey house with 4 bedrooms costs approximately 650 +/- for a full tank including GST and PST taxes. It is up to the purchaser to establish their own credit with a reputable company. I suggest Irving or Noonan oil companies for their friendliness and ease of transactions. Please note every oil tank capacity is different.

Propane tanks: For propane fire places and stoves are rented not owned on Prince Edward Island for safety reasons. Each tank is rented with a monthly fee ranging from the type of tank and amount of propane.

Furnaces: There are (2) types of furnaces. Oil or Wood or Oil and Wood combined. There is forced air or hot water. I would suggest Sherry Heating service. It is important to have conformity for the insurance companies. This means the furnace has to be in working order and the flues also. A house will not be insured on Prince Edward Island without a conformed furnace and the flues.

Woodstoves and propane fireplaces: Should be installed by a someone experienced and certified. Antique woodstoves are required to have 16" (inch) flues. Your flues should be cleaned at least at spring and fall and/or more often to clear the soot that forms. This soot is a fire hazard and early prevention is recommended.

If you plan on burning lots of wood than your wood has to be well dried. I would suggest Arsenault Saw Mills for your wood order. A small wood burning stove takes logs in the sizes from approximately 15-20 inches. A large furnace takes logs from 24 to 28 inches. A slow burning stove takes less wood that a working wood furnace. A large wood furnace on a cold winter day takes at least 16 logs per day. Wood may be purchased in blocks. Which you would have to have split. Or the wood may be corded, cut and delivered.

Note: In cities such as Summerside and Charlottetown, wood stoves and furnaces are quite rare. There are many more in the rural/country areas.

Land Transfer Taxes effective since June 2005. This tax is mandatory and is 1% of the closing price of the house/cottage/business/land/investment etc. Example: 100,000 - land transfer tax would be 1,000 etc.

Non-residents/overseas buyers and non-islanders pay 1.5 higher taxes*. Note. If you live, work and reside in Prince Edward Island for 183 consecutives days and can prove this, then you can apply for a Pronvincial Tax Credit. The amount will be credited to your tax bill but you will not be reimbursed in cash.

GST - May or may not apply. The lawyer/barrister/solicitor takes care of this information.

IRAC (Island Regulatory Advisory Committee).
This committee regulated who and how much land/acreage/waterfront is owned on Prince Edward Island (Canada). If you plan on purchasing a home in PEI with more than 5 acres. IRAC also monitors waterfront. If you owe more than 165 feet of shore/water frontage. Please contact me for further details at (902) 854-4190 (Residence) or direct cellular: (902) 888-9293. Your future lawyer on Prince Edward Island fills out the IRAC application and sends it off to IRAC on your behalf for approval. The delay is normally between 4-6 weeks.

New House/Cottage Construction: You will have to pay GST on a house that is 5 years or less.

Building Permits: You have to apply to get a Building Permit from Access PEI located in your designated area, county/city you will be residing. There is a procedure to follow and a soil test/perk test will need to be conducted. There are (3) different categories of soil. Category 1, 2 and 3.

Land/Survey and Plot Plans: This is the most frequent question I get asked. Alright, most houses on Prince Edward Island do not have a plot plan or survey plan. The plot plan has the boundaries of the home in relation to the property. A plot plan may be done after a closing of a sale of a home.

Sub-division: A building permit must be issued to commence an application for a sub-division. Also a soil test with the company of a reliable company which has a back hoe to dig a hole with a representative has to be both present. The quality of soil is examined. They choose where they will dug for the sample. A letter will be sent to let you know the results. An approval of a sub-division has many facets and steps. It all varies depending on the sub-division. Will it be for recreational purposes, building lots, waterfront lots, waterview lots. How large is the sub-division in acreage, how many lots and their size. There must be enough space for a well and septic system on the building lots. There are restrictions on how far from the ocean one can build a home and the distance the well and septic system have to be away from each other. A land surveyor has to be hired to make a survey and plot plan per lot. The blue prints are made and authenticated with a stamp of approval and numbered from the City. Not all sub-divisions will be approved.

Appraisals: Are conducted through banks or private certified appraisers. Please be aware that there are limited appraisers on the island. An appraisal price is depending on the size of the property/home and varies. The appraiser will charge for the kilometers for driving to the location added on the bill and GST and PST will be charged.

Commercial Appraisers: Cost much more than a residence. It takes approximately at least 2-3 months to complete a single commercial appraisal transaction. It is detailed including inventory, business, financials etc. There is an assessment for both the business (inventory etc) and real estate property: building/land etc.

First Time Buyers:
Interest rate - Note: changes daily for a home and higher for commercial loans.
Amortization rate: duration of term (Usually 15 to 25 years or more). If you have a very large down-payment your amortization rate may be lower. Speak to a mortgage broker.
Deposit - down-payment for home.
CMHC - A down-payment of 25% or more may eliminate the CMHC fee* . Speak to your mortgage broker.
We have an in-house Mortgage Broker Ask for her advice and please call and make an appointment to go over your credit history. If she is free at the office she will sit down with you and discuss mortgage possibilities. She will advise you on how to correct your present situation. Her name is Tricia Keen at Centum Financial Options Group located right beside my office at 629 Water St. East in Summerside. This is the is the 2nd largest City in Prince Edward Island. Tricia Keen is the Mortgage Manager and please mention my name to her should you set up an appointment. Thank you. Tricia will go over different types of mortgages: Flexible, variable or fixed, current interest rate and terms (amortization).

Directions to my office and our in-house mortgage broker office (Same Building). From the Confederation Bridge take Highway 1 which becomes 1A and exit direction Summerside. Turn left on Water Street and you will see and Esso gas station and Star-Lite Restaurant. We are located right beside the College of Piping. Contact me,
Nora Gravel, Bilingual Realtor with Century 21 Northumberland Realty for an appointment 1 week prior to your visit to the island so I may be available to show you properties in advance and service you better.
Telephone Residence: (902) 854-4190 or Cellular: (902) 888-9293
Emails: nora@century21pei.com or nora.gravel@pei.sympatico.ca
Websites: www.norapeihomes.com or www.property-list.net (Agent Sites)

Credit Rating: (In-house mortgage broker can assist you with the following situations below: Items affecting your credit rating may be as follows:

Beacon Score and TDR (Total Debt Ratio)
Credit Cards: Visa, MasterCard, American Express, Capital One, Diners Club and all Gas cards etc.: Pay your minimal monthly amount but don't be late
Car leases: Not terminating a contract. Late payments etc. Car loans: Outstanding payments
Bursaries: School bursaries
Judgments: You need a pardon
Bankruptcy: (7) years on your credit record but information always remains.
Outstanding Bills: Sears, Canadian Tire, Future Shop, Long Distance Companies/Plans
Bank overdrafts unpaid
Bank credit lines late payments or unpaid balances
Mortgages and 2nd mortgages: Late payments
Continuing Education school tuition unpaid or incompletion (Designer, Media, Tourism, Travel etc.) or At home courses
Furniture/TV rental etc.
Videos, books, CD's (Mail orders), Blockbuster Movie - Unpaid, refusal of returning items
Websites: On-line shopping outstanding invoices

Make a list of your expenses: Rent/heating (Oil, Electric or gas), /electricity/phone (long distance plan), internet cellular phone/cable or satellite cable. Clothes, restaurants, outings, miscellaneous. Car payments, credit card payments, school payment (if applicable). Medical bills, medication monthly bills and any personal loans.

Speak to a mortgage broker about how an RRSP's can help contribute to your first time buyer (home). Primary residence.

CMHC: Will charge a certain amount percentage as an insurance. For example: If you qualify to put 5% down-payment on a first time home than CMHC will charge a percentage of the money loaned. (Residential & commercial loans differ in the amount). Speak to a mortgage broker about this. (Residential & Commercial loans have different maximum amount allowable)

Investments (Diversified Portfolio) would include the following:

If you plan on investing in Prince Edward Island speak to a mortgage broker or a bank mortgage broker regarding your immediate investments to purchase real Estate. You may or may not have the following assets: RRSP'S/REERS, Stocks & Shares (Regular and Blue Chips), Options, Mutual Funds, Money Market Funds, Canada Savings bonds, Treasury Bills, GIC's, Locked in RRSP'S/Retirement Savings Plans, Investments (ROI's), Real Estate (Land/Waterfront/Acreage/Homes/Recreational/Commercial), Art, Antiques, Vintage Cars, RV's etc. In the United States: 401 K's.

Define your criteria: Will this be your primary residence, 2nd residence, (6 months on PEI and 6 months elsewhere), cottage, future retirement home or business.

Relocation: Please contact me if you plan on relocating to the gem of the world, Prince Edward Island (Canada).

I can walk you every step of the way to ensure your move is pleasant and professional. Whether you choose to move because of a new job or simply want a change of pace. Are you moving to retire here permanently or within the next 5 to 10 years? Let me show you how.

Buying PEI REAL ESTATE with Nora Gravel