Ottawa Real Estate Agent

2009-07-23T10:12:00.000-07:00

TOM WITEK YOUR #1 CHOICE FOR REAL ESTATE!

Welcome to Tom Witek’s real estate website.

This website serves Sellers and Buyers in Ottawa region as a vehicle to promote residential homes. Currently, there are many residential properties in Ottawa’s market. Tom Witek is the only name you need for residential real estate.

Tom Witek, M.A., B.I.B.
Sales Representative
Prudential Town Centre Realty Brokerage
Business: (613) 828-8010
Cellular: (613) 314-1199
E-mail: twitek@prutcr.com

Member of Ottawa Real Estate Board.
M.A., European and Russian Studies from Carleton University.
B.I.B., International Business, Honours from Carleton University.
Services provided in English, Polish, Spanish and Italian.

Buyers and Sellers: Call Tom Witek for your free market evaluation.

Agreement of Purchase and Sale - Form 100 ONTARIO

2009-01-01T09:39:00.000-08:00

Ontario Real Estate Association OREA. This form was developed by OREA for the use and reproduction of its members and licensees only. In order to use this form a Buyer Representation or Seller Represenation must be established between you and listing/cooperating agency. These forms are attached for information purposes only.

Ottawa Sellers and Buyers

Condominium Resale Agreement of Purchase and Sale

2008-10-18T21:14:00.000-07:00

Ontario Real Estate Association OREA. This form was developed by OREA for the use and reproduction of its members and licensees only. In order to use this form a Buyer Representation or Seller Representation must be established between you and listing/cooperating agency. These forms are attached for information purposes only.

Ottawa Home for Buyers and Sellers

Ottawa Harmonized Sales Tax in July 2010

2008-09-20T19:20:00.000-07:00

Ottawa Harmonized Sales Tax in July 2010

Yes, it will happen and it's coming to the Ottawa neighbourhood near you. As of July 1, 2010 Ontario government has decided to implement their new harmonized sales tax initiative. Instead of two taxes, the existing Provincial Sales Tax (8% PST) and the Goods and Services Tax (5% GST) we will end up paying a combined tax of 13%.

There are few exceptions hardly worth mentioning which are exempt from the tax increases, but majority of goods and services will be taxed at the new rate. The government wants to harmonize the taxes with the other Canadian provinces and bring the taxation in line with taxation rates which are predominant around the world. The minister of finance claims that this magic formula, new tax harmonization, will reduce the cost of goods exported from Ontario and boost the competitiveness of our province/economy/country.

Great, with such nominizations it is hard to determine who is the winner in the new equation, but what does this mean to a customer, especially one that wants to buy a new home or a resale home, drive a car and heat his/her home? Guess what, yes you will have to pay 13% on all newly built homes, all real estate commissions, all lawyer fees, inspection fees, gasoline, heating and electricity which all are subject to the new harmonized tax. The purchase of resale homes will remain exempt from the PST but not the commissions related to the real estate transaction. Traveling by air and train will become more expensive. You get the idea......

In order to offset some of this costs, the government in all their wisdom and power is offering Ottawa families some relief......for.......next three year ONLY.

This handout will be disbursed in the following way:

•Cash payments with a maximum of $1,000 in 2010 and 2011 for families who earn less than $160,000 per year;

•A permanent $260 refundable sales tax credit for low and middle income adults and children;

•An enhanced refundable property tax credit for low and middle income homeowners and tenants;

•Exemption from the blended tax for new homes under $400,000 in form of rebates, newly constructed homes with a worth between $400,000 and $500,000 will be eligible for a partial rebate;

•1.1 billion dollars in personal income tax cuts.

The life goes on. We must live and own houses, since this is a good way to invest and grease the wheels of local Ottawa's economy. Once you decide to buy a home, please contact me at Main Page Contact: Tom Witek 613-314-1199 or twitek@prutcr.com to schedule an appointment during a time most convenient to you.

Ottawa: Qualify for Mortgage Financing

2008-09-16T09:58:00.000-07:00

Mortgage Financing – How do I qualify for a mortgage?

The elements of your mortgage financing

Your mortgage rate and terms of the mortgage are crucial and essential part of the home buying process. This rate may determine your living standards and those of your family. Future mortgage payments will consist of principal sum (this is the sum that goes into your pocket upon the sale of your home) and interest (this is the payment that goes to the lender and is called cost of borrowing). Main features of your mortgage that you should pay a close attention to are: Prepayment, Portability and Assumability.

Prepayment – this mortgage feature will allow you to pay down your mortgage with a lump sum at any time within a year with the limit set in the mortgage conditions. This is done without penalties as stipulated in your mortgage financing documents. If you have no clause in your mortgage which specifies this condition, you will not be able to make any additional payments on your mortgage or pay down your mortgage with a lump sum.

Portability – this mortgage feature will enable you to transfer your terms and conditions as well as the mortgage rate from your current home to the newly purchased property. Portability is beneficial to you, assuming that you sell your home within two or three years of starting your mortgage and transfer the mortgage to another purchased property. (On 5 year fixed mortgage) You must understand the terms of your mortgage financing and discuss the portability feature upfront with your lender.

Assumability – this mortgage feature enables you to sell your home with the ability to transfer the mortgage financing rate, terms and conditions to the buyer of your property provided that it is beneficial to both parties to do so. Again, this mortgage feature must be discussed upfront with your lender before you sign the mortgage documents.

Term of a mortgage – This is the length of time that certain factors, such as your interest rate are set at a negotiated level. Terms are usually set between 6 moths and ten years with the most common being 5 years. At the end of the term you either pay your mortgage in full or renew with new terms, conditions and amortization period. The rule of thumb is that the longer the term, the more you will end up paying in interest.

Amortization – This is the amount of time over which the entire mortgage will be paid off. Most mortgages are amortized over 15, 20 or 25 year periods. The longer the amortization, the lower your scheduled mortgage payments, but the more interest you pay in the long run.

Schedule of payments – A mortgage loan is repaid in regular payments as stipulated in your mortgage financing documents: monthly, accelerated biweekly or accelerated weekly.

Open mortgage – This is a type of mortgage where you are able to repay the loan in part or in full, at any time without penalty. For open mortgages, interest rates are usually bit higher than the closed mortgage rates. In my opinion, you should most likely negotiate an open mortgage if you are planning to sell your home in the near future (1-2 years). This is because from an open mortgage you can easily convert to closed mortgage without incurring any penalty.

Closed mortgage – The closed mortgage is a good choice if you don’t like unpredictability of market rates and you are risk averse. With closed mortgage you will get same payments throughout your term. In the case that the mortgage market rates fall in the future and you wish to break your mortgage to get new preferential rate you will be penalized for breaking your closed mortgage.

The types of mortgages

A.Conventional Mortgage – This mortgage is for an amount which does not exceed 80% of either the appraised value of the property or the purchase price, whichever is lower. For conventional mortgages you are required to have a downpayment minimum of 20% to qualify. With conventional mortgages you will not have to pay the CMHC premiums.

B.High-ratio Mortgage – You automatically fall into the high-ratio mortgage category when your downpayment is less than 20% of the value of the home. This means that you will require mortgage loan insurance offered by CMHC to cover the lender in case of default. In principle, it is easier for you to walk away from a property if you only put 0%-5% down than if you put 20% of the value of the property. This premium can be rolled in into your mortgage payments or paid in full on closing at the lawyer’s office. You may read about the CMHC insurance premium rates at How Much Does CMHC Mortgage Loan Insurance Cost?

C.Second Mortgage – second mortgages have a higher interest than first mortgages and a shorter amortization period. In principal, you can have as many mortgages as you like on your home as long as you qualify for them.

Rate of Interest

The interest is the true cost of borrowing and is payable to the lender forming a part of your monthly mortgage payments. Mortgage rates can be either fixed or variable (open variable or closed variable rates). The variable rate is set by the lender each month and is based on the prevailing market conditions.

Another option for a home owner is to establish a Home Equity Line of Credit (HELOC). HELOC is a large line of credit which is secured by borrower’s home as collateral. Most banks will extend this line of credit based on 80%-90% (depending on the lender) of your home’s appraised value. For example, four years ago you bought your home for $240,000 and due to the market conditions you know that your home has increased in value. To qualify for the line of credit you know that you need to build up 10%-20% (depending on your bank) of home equity. Home equity is the remaining amount of money which you would get if you sold your home and paid off all debts and closing disbursements. Assuming that you have this much home equity, you apply for HELOC, your bank sends their appraiser and the appraiser appraises your home at $295,000. Therefore, $295,000 - $240,000 = $ 55,000 this is part your home equity. In addition, for the past four years, you were making principal payments and you partly paid off your previous mortgage. Let’s say you paid off $40,000 in four years. This means you need $200,000 dollars for your line of credit (HELOC). This is because $240,000 was the purchase price of your home 4 years ago - $40,000 paid off principal in four years. Your home equity amount plus principal paid off amount equals $95,000. This means that if you were to sell your home right now or you defaulted and the bank was to foreclose on you, there would be $95,000 – disbursements. Therefore, $95,000/$295,000 appraised value of your home equals 32%. In this case, first bank’s condition is satisfied you have more than 20% of appraised value of your home which will be used as collateral for the line of credit (HELOC).

Second condition is that the bank will give you only a line of credit on 80%-90% OF THE APPRAISED VALUE OF YOUR HOME. Therefore, 80% of $295,000 is $236,000. Your new HELOC will be extended to you for $236,000 but remember that you only needed $200,000 to cover your mortgage? You pay off your previous mortgage with your line of credit and you have a remaining $36,000 of available credit. As you pay down your line of credit the availability of funds increases on dollar per dollar basis. The interest rates on the line of credit are usually bank’s prime, but due to current market conditions all you can hope for is prime + 1%. It is great to have a HELOC, if you have the 20% down. If the rates increase substantially over the years you can always lock in and you pay no penalty, since this is a line of credit.

Step 1. You can compare interest rate trends on the Bank of Canada’s website for the monthly Bank rates and the 5 year conventional monthly mortgages rates

Step 2. You can follow the Bank of Canada’s announcements. Mortgage interest rates fluctuations are usually a response to Bank of Canada’s interest rate announcements. A schedule of dates for Bank of Canada’s policy interest rate announcements is found here.

Step 3. A good source of information on the current mortgage fixed rates is Closed term fixed rates for different institutions You can usually observe changes on this website after each of the Bank of Canada announcements. The mortgage rates go up or down dependent on the economy’s outlook provided by Bank of Canada’s economists and analysts.

Sources of mortgage or who is my mortgagee/lender?

You can get your mortgage through these institutions directly or you can go to a mortgage broker who has relations with several institutions; banks, insurance companies, trust companies, caisses populaires, credit unions, finance companies, pension funds and private lenders.

You can use part of your RRSPs towards the purchase of a home (up to $25,000 per co-buyer). More information can be found at Canada Revenue Agency’s website under Home Buyers' Plan (HBP)

How do I qualify for a mortgage?

In order to qualify you for a mortgage, the lender or mortgage broker may ask for the following information:

1. Personal information – age, marital status, dependents.
2. Details of employment, including proof of income (T-4 slips, personal
income tax returns), letter from your employer stating your salary and position.
3. Other sources of income.
4. Current banking information including a Void Check.
5. Verification of your down payment.
6. Consent to run a credit investigation; you can investigate your own credit.
7. A list of assets, including property an vehicles.
8. A list of liabilities, credit card balances, car loans, other loans.
8. Fees for appraisal or copy of an appraisal done in the recent past.
10. Mortgage insurance fees.
11. A detailed property listing information.
12. A copy of Agreement of Purchase and Sale.
13. Any other information the lender might ask of you.

Please contact me at Main Page Contact: Tom Witek 613-314-1199 or twitek@prutcr.com to schedule an appointment during a time most convenient to you.

Ottawa - Real Estate Offers

2008-09-01T10:23:00.000-07:00

Real Estate Offers in Ottawa

Tom Witek can help you make an offer to buy your new home.

Once you have found a home that meets both your needs and your price range, you draft an offer with your sales representative and he presents the offer to the vendor or vendor’s listing brokerage representative. Here is a link for your review. This is an agreement of purchase and sale that you will sign when negotiating the price, terms and conditions. This form can only be used by licensed sale representatives after a Buyer Representation or Seller Representation Agreement has been signed. This form is attached for information purposes only: Agreement of Purchase and Sale

The main elements of the offer include:

1. Legal names of buyer and seller, and the legal description and
municipal address of the property.
2. The purchase price
3. Deposit (minimum $1,000, but the more you give the more favourable
position you will take with the vendor in a multiple offer situation)
4. Expiration date and time of the offer also called irrevocable time.
5. The closing date and the title search date.
6. All the conditions that are appropriate, usually less conditions
will create a more favourable offer.

When your real estate agent presents your offer to the vendors the following three scenarios can occur: Your offer is accepted without any changes, Your offer is outright rejected, Your offer is countered.

The Offer is accepted by the vendor:

It is up to you and the vendor, now, to fulfill the conditions that have been negotiated in the offer.

A. You have money in the account on which the deposit has been drawn.
B. Fulfillment of Financing condition (if applicable), make sure your lender
gives you a commitment letter on that property (specific municipal address)
C. Fulfillment of Inspection clause (if applicable).
D. Fulfillment of other conditions (if applicable).
E. Fulfillment of all conditions within the time clearly specified in the
offer. In some, cases extensions are granted by the vendor, but if the
conditions are not fulfilled on time, the deal might become null and void.
F. The vendor has to comply with any terms and conditions stated in the offer
during the time agreed upon by both parties.

The Offer is rejected by the vendor:

The vendors might simply reject your offer if they think you are low-balling them, or your terms and conditions are unacceptable. After your offer is rejected, you may change the price and conditions and draft another new offer. This initiates the offer negotiation process again.

The Offer is countered by the vendor:

The vendor may change any terms or conditions stated in the offer. In most cases, price change and closing dates are negotiated. After the offer is accepted by both parties you will need to do the following: show your lawyer the agreement to take note of crucial dates, meet all conditions as stipulated in the offer, your lawyer will search the title to make sure it is free of all encumbrances, the lawyer will check into any liens on chattels and outstanding taxes, the lawyer will communicate with the lender to arrange for smooth transfer of mortgage funds, you will need to arrange for transfer of utility services, you will receive a statement of adjustments from your lawyer and you will be notified about the payable amount which you will have to provide to the lawyer through a certified check.

Moving Checklist – Notifying various parties of your address change

Friends and acquaintances, landlord (if necessary), insurance brokers, schools, post office, phone company, electricity/hydro, natural gas, heating company, cable, doctor, dentist, lawyer, veterinarian, banks, employer, income tax, family allowance, CPP, Old age security, driver’s license, car dealers, credit card companies, clubs, associations, charities, any subscriptions and clubs.

Tom Witek’s Homes Buying System

Home buying costs in Ottawa: Affordability - Ottawa’s Housing Market

2007-09-15T14:47:00.000-07:00

Understanding the Housing Market in Ottawa

Applied knowledge is power. The more you know about your local market conditions the better you can decide on what and where your next move is going to be. In order to accomplish this you will need to understand house price trends, mortgage rate movements, your affordability and the types of mortgages available. In one session, I can provide you with necessary information so that you may make an informed decision on your next real estate purchase.

Home buying costs in Ottawa – Your Affordability in the Ottawa’s Housing Market

1.You may choose to put a 20% down payment on your new home which will enable you to qualify for a conventional mortgage loan which does not require mortgage loan insurance. You may read about the CMHC insurance premium rates at How Much Does CMHC Mortgage Loan Insurance Cost? or look at the table included below:

2.A minimum down payment of 5% is required for a high-ratio mortgage. These types of mortgage loans – for any amount in excess of 80% of the value of the home – are required to be insured against default.

3.Are you eligible for First-Time Home Buyers’ Tax Credit? The maximum amount of the claim is $750.

4.Are you eligible for Land Transfer Tax Refund For First-Time Home Buyers? The maximum amount of the refund is $2,000.

5.How much can you afford? Generally speaking, lenders follow two rules in determining your affordability and the highest allowable monthly payment.

A. The first affordability rule is that your monthly housing costs shouldn’t be more than 32% OF YOUR GROSS HOUSEHOLD OR FAMILY MONTHLY INCOME. These costs include monthly mortgage principal and interest or P+I, taxes (T), heating expenses (H) and 50% of monthly condominium fees (if applicable).

Therefore, Monthly Housing Costs (P.I.T.H.)< 32% of the household monthly income.

The ratio of your housing costs to your gross monthly income is known as Gross Debt Service (GDS) ratio. Lets say that your estimated monthly housing costs are P($370) + I ($460) + T($280) +H($200) = $1,310 and you gross household monthly income is $5,020. (P.I.T.H) $1,310<32% of $5,020 and you qualify for a mortgage since your GDS= 26.1%

B. The second affordability rule is that your entire monthly debt load shouldn’t be more than 40% of your gross household monthly income. This includes P.I.T.H (housing costs) + other debts (such as loans, credit card payments). The ratio of your whole costs to your gross monthly income is known as Total Debt Service (TDS) ratio. P.I.T.H + other debts < 40% of household monthly income.

Therefore, Entire Monthly Debt Load < 40% of the household monthly income.

From previous example, P.I.T.H = $1,310 + car loan ($150 a month) + credit card ($80) = $1,540 entire monthly debt load.
Therefore, Entire Monthly Debt ($1,540) < 40% of household monthly income.
Therefore, Entire Monthly Debt ($1,540) < 40% of $5,020 and you qualify for a mortgage since your TDS=30.7%

For automated GDS and TDS Calculation?

6.Lenders check your personal credit rating is determination for mortgage approval. You can check your own credit rating at Free Credit Reports 360:

7.You can Help Protect Yourself From ID Theft. Get help with LifeLock. Enroll Now

8.Other costs associated with real estate home sale are:
A.7% tax (on new housing),
B.Appraisal fee ($250-$400),
C.Property taxes,
D.Survey fee and/or title insurance fee,
E.Property insurance,
F.Prepaid (by the vendor) taxes or utility bills,
G.Land transfer tax (simple tool to calculate them located at Ontario Land Transfer Tax Calculator, generally this cost is between 1%-4%),
H.Service charges to hook up your utilities,
I.Lawyer fees (takes care of reviewing the offer, searching the title, draw up mortgage documents, tend to closing issues, cost: $500-$700 plus disbursements),
J.Mortgage loan insurance premium and application fee as discussed previously,
K.Mortgage broker fee (usually this fee is covered by your future lender),
L.Moving costs between $50-$150 per hour,
M.Home inspection fee (generally costing $250-$350),
N.Renovation and repairs costs,
O.Water quality and quantity certificate,
P.Estoppel certificate (condominium only),
Q.Monthly condominium fees (condominium only), etc.

Please contact me at Main Page Contact: Tom Witek 613-314-1199 or twitek@prutcr.com to schedule an appointment during a time most convenient to you.

Seller Property Information Statement S.P.I.S. Residential

2006-10-23T09:59:00.000-07:00

Ontario Real Estate Association OREA. This form was developed by OREA for the use and reproduction of its members and licensees only. In order to use this form a Buyer Representation or Seller Representation must be established between you and listing/cooperating agency. These forms are attached for information purposes only.

Ottawa Sellers and Buyers

Working With A Realtor The Agency Relationship

2006-10-23T09:29:00.000-07:00

Listing Agreement Authority to Offer for Sale

2006-10-23T09:18:00.000-07:00

Team of Real Estate Professionals: Sales Representative

2006-09-16T10:15:00.000-07:00

Team of Real Estate Professionals

Just like, in case of divorce you would need a good lawyer, to facilitate a real estate transaction you will need a team of professionals to help you navigate through a myriad of regulations and the entire sales process. We are here to help you make your real estate transaction as smooth and stress-free as possible. A sound advice is never free.

Real Estate Representatives: A good sales representative should be able to save you time and stress while buying your home. You can deal with vendor’s real estate agent who has not your interest at heart or you can enlist Tom Witek to work smart on your behalf. There is no charge to you since my commission is paid by the vendor. So you can get my expertise and advice on real estate matters for free. This applies to dealing with construction companies as well. The construction company will pay me just by registering you in their sales office. I can easily guide you through all of the intricacies of the home buying process and make sure that you get a great deal. Look at the wealth of information that you gathered just by reading my real estate pages. I am here to help you buy your next home with me. Please contact Tom Witek at 613-314-1199 or twitek@prutcr.com Tom Witek’s Homes Buying System

Builders/Contractors: You may have to deal with builder or contractor when buying a new home. Tow Witek can help you navigate through the complicated home sale process through a builder. I can help you negotiate with the builder and review your agreement of purchase with you. One caveat, I have to come with you to the sales office on the first visit to the builder which will ensure that I get paid for my professional real estate services through the builder’s broker agreement.

Appraisers: If you wish to have an independent appraisal done on a particular property I can recommend a few appraisers to you. We can insert a condition in the offer which will state that your purchase is conditional upon the approval of an appraiser. This will ensure that you obtain an expert second opinion as to the property’s market value.

Mortgage Brokers and Lenders: It is always good practice to engage a mortgage broker for a free consultation. Mortgage broker has the ability to access lenders and interest rates which you may not be aware of. He/She will help you determine the best rates on the mortgage market. I can recommend few mortgage brokers who will take care of your financing needs. The role of the mortgage broker is to find the lender with the terms and rates that will best suit you.

Lawyers: The lawyer will review any contracts and make arrangements for swift closing. I can recommend lawyers who are essential to the real estate transaction.

Home Inspectors: A good inspector will review all essential systems of your home. This is called a comprehensive visual inspection which assesses the condition of the home. It is essential to choose an inspector who is a part of national or provincial association of inspectors.

Insurance Brokers: An insurance broker can provide you with property insurance and mortgage life insurance.

Ottawa Condominium Corporations Buying Condominiums

2005-10-18T14:50:00.000-07:00

Ottawa’s Condominium Corporations

What is a condominium corporation?

A condominium is a form of legal ownership. Condominiums can be established in garden homes, high-rise residential buildings, low-rise residential buildings, and townhouses. Condominiums are separated into two different parts. The first part of a condominium corporation is composed of complex of private dwellings also known as condominium units. These units are owned by separate legal entities and are registered in the name of the purchaser(s) or legal Ontario incorporated company(ies). The second part of a condominium corporation consists of the common elements of the building that may include hallways, walkways, gardens, lobbies, elevators, and recreational facilities. Common elements may also include structural elements and mechanical and electrical services. The co-ownership of these common elements is shared amongst the individual unit owners. Each unit owner has an undivided interest in the common elements of the building. This ownership interest is often referred to as a unit factor. The unit factor for any particular unit is usually calculated in proportion to the value that the unit has in relation to the total value of all of the units in the condominium corporation. The unit factor is also known as your ownership percentage in the common elements. This unit factor is used in calculating the monthly fees that you will be paying for the operation of the condominium corporation. The creation of a condominium is regulated by provincial or territorial condominium legislation and municipal guidelines. A developer or other interested party may register a declaration to create a condominium or in other cases, where the provincial legislation differ, an application is made to have title issued for the units pursuant to an “approved plan of condominium”. Once a condominium corporation has been established, a Board of Directors, elected by, and generally made up of, the individual condominium owners, take responsibility for the management of the corporation’s business affairs. Each unit owner has voting rights at meetings. Every condominium is governed by its own unique rules, regulations and by-laws. The rules are necessary to ensure that condominiums are properly operated and maintained as well as to define your rights and obligations and those of other condominium co-owners. Many condominiums have strict rules concerning the alteration of the unit space or its appearance. Condominiums are made up of complete communities with varying lifestyles.

When you buy a condominium, you become the condominium corporation co-owner where you own your unit, as well as a percentage of the common property elements allocated to the unit. You own everything within the unit boundary, any equipment, systems, finishes that are contained within it. Usually, the cost of parking lot and storage facilities is in addition to the initial purchase price. Review your agreement of purchase and sale to make sure you have a parking spot included in your condominium purchase. You can access Condominium Resale Agreement of Purchase and Sale here provided for viewing purposes only.

As a condominium co-owner will I have to take care of all common areas?

Most condominium corporations contract-out the daily operations of the condominium to a property management company under the direction of the condominium’s Board of Directors. The cleaning of common areas, payment of common area utility bills, operation and maintenance of the central space, hot water heating and air-conditioning systems, snow and garbage removal and the collection of monthly maintenance fees may fall under the jurisdiction of the property manager. Any additional expenses which were not accounted for in the annual budget of the condominium corporation may have to be approved by the Board of Directors before the property management company receives the funds to contract-out additional work orders.

The property management company will look for suppliers of services for the maintenance of the following:

• Snow removal and grass cutting, watering as well as landscaping
• Common plumbing, electrical and heating and air-conditioning systems
• Repairing or replacing balconies
• Windows and doors – repairs and replacement
• Roof and wall repairs
• Parking areas cleaning
• Repairs such as painting of various common elements
• Maintenance of recreational amenities such as children’s playground, garden
areas, pool areas, exercise and gym areas, sauna etc.
• Any other part of the property not described above that is referred to as
common elements.
• HVAC system maintenance

Please contact Tom Witek at 613-314-1199 or twitek@prutcr.com Tom Witek’s Condo Buying System

What insurance will I need when buying a condominium?

Both the unit owner and the condominium corporation must have insurance. The corporation may be responsible for:

• Common areas and units
• Boilers and equipment such as elevators and HVAC systems.
• The corporation’s property, such as furniture, equipment, vehicles.
• Directors and Officers insurance- to respond to claims made personally against a
director or officer of the condominium.
• Personal liability – against claims for bodily injury and/or property damage
occurring on the condominium property or caused by some act or omission of the
condominium corporation.
• All perils as per the condominium governing documents.

Investing in condominium rental units

Many condominium buyers purchase their units as an investment with the intention of renting the unit(s) out. While most condominium corporations allow owners to rent their units to a third party, you should confirm this through a review of the condominium’s governing documents and your provincial legislation.

New condominiums versus resale condominiums

Special considerations when buying a condominium:

• Understanding of floor area measurements,
• Beware of any plans to reduce the ceiling height in any location in the unit.This
is usually done to accommodate duct work and other mechanical and electrical
services.
• Beware of the location of heating and air-conditioning equipment.
• Beware of the location of ventilators and hot water heaters.

Other considerations when buying a condominium may include:

• Who operates and maintains the heating and air conditioning systems?
• What options are available for floor finishes (hardwood, carpet, tile, laminate
etc.) cabinets and fixtures?
• Are there any special provisions/materials for noise reduction between units?
• How are units heated, cooled and ventilated?
• Is the building energy efficient?
• What is included in the purchase price of the condominium and what must be paid
extra?

These are the advantages to buying a new condominium corporation’s unit:

• Usually, a lower purchase price when compared to a freehold home.
• A broad range of options and/or upgrades available to choose from.
• Newer buildings have less risk of having to undergo costly repairs.
• You can choose your preference in location within the building.
• New home warranty protection.

These are the disadvantages to buying a new condominium corporation’s unit:

• Because the construction may not have yet started, you must rely on artist
sketches and floor plans (which may change in the long-run). Understand the
location of your unit’s boundaries, location, finishes, materials, chattels etc.
These should be clearly specified in the agreement of purchase and sale.

• Your initial deposit will be tied up for the duration of the construction.

• Financial institutions may not give you a mortgage on an unregistered
condominium.

• Your interest rate may change because financial institutions, in most cases, can
guarantee your pre-approval mortgage interest rate for 120 days only.

• Construction of your unit may not be completed by the expected closing date.

• You may move into your unit while construction continues in others – this can be
noisy and disruptive. You may actually have to rent your unit from the
condominium corporation, if your unit is not registered in time under your name.
This would mean that you live in the unit and pay rent to the corporation while
waiting for the title to your property.

These are the advantages to buying a resale condominium corporation’s unit:

• You buy what you see.
• You can take possession of the condominium unit quickly and without delays.
• Deposits are often much lower for resale purchases and there is no GST paid on
the purchase price.
• You can inspect the community within which the unit is located prior to making
an offer. Is the community for singles, younger couples, younger couples with
children, or older couples?

These are the disadvantages to buying a resale condominium corporation’s unit:

• Older condominiums may have higher condominium fees due to repair and
replacement need, depending on the level of reserve fund.
• Fewer options with regard to choice of unit (within the building), decorating,
or upgrades.
• The amenities that you may find desirable may not be available.
• Older resale units may not be as energy efficient due to different construction
standards and the updates in the building code.
• Major repairs may be coming due that will require extra charges to the unit.
These are called special assessments and are discussed below.

Affordability – Purchase Price and Recurring Costs

For new construction condominiums the purchase price may include:

• Unit sale price.
• Upgrades.
• Occupancy fees which may include: estimated common expenses based on the
disclosure statement budget, estimated realty taxes on the unit, interest on the
balance is due on closing.
• PST on chattels being purchased with the unit.
• Development charges.
• GST on the sale price.
• Landscaping fees.
• Two months’ common expenses to build the reserve fund.
• Utility hook-up fees.
• Warranty program enrolment fees.

In addition, at final closing you will be required to pay the following costs:

• Remainder of the purchase price.
• PST and GST on extras or upgrades to unit finishes, equipment and systems if not
included in the purchase price.
• Legal fees and disbursements.
• Provincial land transfer tax.

Many of these additional costs do not apply to resale units, since they were already paid and/or factored into the purchase price.

Recurring Costs:

• Monthly condominium fees or common expenses.
• Unit and contents insurance.
• Mortgage payments.
• Mortgage insurance.
• Property taxes.
• Amenity fees, such as storage, pool, extra parking, if not included in the
common expenses.
• Utilities, telephone, cable and internet access.
• A contingency for emergency repairs.
• Maintenance costs associated with the upkeep of your unit.

What is included in my condominium fees?

Unit owners pay a monthly condominium fee to cover their portion of operating expenses of the common property elements. A portion of this fee is allocated to the reserve fund that is created to ensure that there are sufficient funds available for major repairs and replacements over the life of the building. Calculation of condominium fees varies by province but it is usually specified in the governing documents of the condominium corporation. Condominium fees are usually calculated from the annual operating cost of the entire condominium and divided by the percentage of your contribution to the common expenses (your unit factor) as outlined in the condominium governing documents and or local legislation. These fees may include:

• Day-to-day care and upkeep of the common property elements (eg. snow removal,
landscaping, cleaning of common elements including carpets and exterior windows,
heating/cooling systems maintenance).

• Contributions to the reserve fund, which is used to pay for major repairs to,
and replacement of, common building systems to ensure the condominium is kept in
good repair over the life of the building.

• Property management fees.

• Salaries of condominium employees (eg superintendent, security guards,
concierge).

• Amenities (eg. use of pool, salary of lifeguards, recreational facilities, party
room).

• Utilities.

• Building repair and maintenance.

• Cable and/or internet access.

• The corporation’s insurance policies.

If the Board overestimates the common expenses, the surplus is wholly applied either to future common expenses or is paid into the reserve fund. Refunds are not given to the unit owners.

Extraordinary Expenses known as Special Assessments

If your Condominium Corporation generates a deficit in the operating budget or reserve fund, you will need to pay extra contributions. When this occurs, each owner is given a special assessment charge. The amount of the additional mandatory contribution is calculated and multiplied by your unit factor as previously discussed.

You can pay the special assessment contributions in two ways:

1. The amount owned by the owner is added as a lump sum to one month of an
owner’s regular monthly condominium fees,

2. The amount owned is spread over a period of time by increasing a number of
monthly condominium fees.

This is why it is crucial to check and understand the financial statements of Condominium Corporation, reserve fund levels (surplus versus deficit), building condition surveys, inspection reports, maintenance history, and the estoppel or status certificate for the condominium corporation before you commit to signing an offer of purchase and sale.

Condominium Specific Terms

1.Board of Directors: Each condominium has a Board of Directors that is elected by, and generally made up of, the unit owners. The Board is responsible for administration and management of the condominium corporation, including policy and finances, as well as decisions about the maintenance and repair of the common property. Unit owners are usually entitled to one vote for each unit they own for each position on the Board of Directors.

2.Common Elements or Common property: Common elements of common property are the portions of the condominium that are not owned by a unit purchaser as part of his/her individual unit. They are shared and co-owned by all the individual owners of the condominium corporation. They usually include such things as corridors, elevators, recreational facilities, playgrounds, lobbies, the grounds, central heating, and air conditioning systems and parking. What is and is not included, as part of the common property elements, must be listed in the condominium’s governing documents. It is possible that some of the common elements may be reserved for the personal use of one or several owners. They are also known as restricted or exclusive use common elements.

3.Disclosure Statement: In some jurisdictions, the developer of a new condominium must provide you with a disclosure statement before the agreement of purchase and sale is binding. The statement includes, among other things, a summary of features/amenities, proposed commencement and completion dates for construction, the condominium’s governing documents and budget for the first year after registration.

4.Estoppel Certificate or Status Certificate: Most jurisdictions require condominiums to issue information packages to prospective buyers. This package can contain the declaration, by-laws, rules and regulations, insurance information, reserve fund balance, other financial disclosures, legal description of the unit and management contracts. It may also include information about any legal filings or judgements against the condominium corporation, the possibility of common expense increases, special assessments or insurance claims, all of which could affect condominium fees.

5.Governing Documents: These are the documents that describe how the condominium is organized and operated. They have different names in different provinces, but they can include declarations, by-laws and rules. They can contain provisions setting out the boundaries of the common elements, the by-laws/budget and common expenses. Governing documents vary from one condominium to another and are filed with the land registry office when the condominium corporation is created.

6.Property Manager: The property manager handles the day-to-day running of the condominium, such as hiring of staff, maintenance and repairs. The property manager is under contract to the condominium corporation. A representative from the property management company usually attends board meetings. Some condominiums may not have a property manager. These are sometimes referred to as self-managed condominiums. The Board of Directors, with the help of volunteers, will assume responsibility for the day-to-day management in those cases.

7.Reserve Fund: This is a fund set up by the condominium corporation is a special account to cover the costs of major repairs and replacement of the common property elements over time. Usually it is at least 10 per cent of the corporation’s total operating expenses. Reserve fund amounts and contributions are more accurately determined by a technical audit and reserve fund study undertaken by a qualified consultant. The consultant will assess the condition of the common elements of the building, estimating remaining life spans and the related repair and replacement costs. Based on their observations, the reserve fund study professionals estimate the monthly or annual contributions necessary to fund the long-term renewal of the common elements. After receiving the reserve fund study, the Board of Directors can propose a plan for the sustainability of the fund, including monthly contributions from owners as part of the condominium fees. You don’t want to move in your new home only to discover that the reserve fund is under funded and major repairs are required. This could mean a significant increase in condominium fees or the levying of charges, commonly known as special assessments, to the unit owners by the condominium corporation to pay for the needed repairs. Ensure you review either the disclosure statement or the estoppel/status certificate to determine the current state of the reserve fund.

Please contact me at Main Page Contact: Tom Witek 613-314-1199 or twitek@prutcr.com to schedule an appointment during a time most convenient to you

Ottawa’s First Time Homebuyers

2005-09-07T10:06:00.000-07:00

Ottawa homebuyers may experience the task of buying real estate quite daunting when it comes to meeting their particular needs.

My name is Tom Witek, I am a sales representative in Ottawa and my goal is to guide you through the entire process of buying your home. I will ensure that this experience will be stress-free and satisfying for you by balancing out your specific needs, your financial potential and presenting you with up-to-date opportunities in the Ottawa real estate market.

The first task in the home-buying process is to properly assess your needs in terms of:
1. Location or Neighbourhood
2. Style of your home
3. New vs. Resale home
4. Cost and Affordability involved in the purchase

A. Location, Location, Location

Location is one of the most important features of a house that affect its value.
When choosing the right neighbourhood, the factors to consider are:
Your lifestyle
Proximity to specific facilities (recreation, shopping, public transit, etc)
Schools
Home and yard maintenance
Size of lot
Distance to work
Maturity of the neighbourhood
Neighbourhood value
Safety and crime characteristics

B. Style of your home

The types of housing in Ottawa that may be of interest you include:

1. Single family home detached – most common type of housing in Ottawa, a free-standing home which sits on its own lot and is occupied by only one family.
2. Semi-detached home – a single family home that is joined to another single family home by a common wall.
3. Duplex home – two units with two municipal addresses, one unit above the other or side by side. The owner may live in one unit and rent the other.
4. Rowhouse or townhomes – one of several single family homes joined by common walls. These can be condominium or freehold units. The term condominium or freehold refers to the form of ownership not the type of housing.
5. Link or carriage home – can be freehold or condominium, and are joined by garages or carports which provide access between the front and rear yards.
6. High-rise condominium – this type of housing refers to a multi-storey residential building containing condominium units.
7. Mobile or manufactured homes – a factory-built and assembled, single family dwelling that is transported to your chosen location and placed on a foundation. This option entails that the homebuyer owns or leases land and constructs a foundation prior to manufactured home delivery.

Typical buyers go through various stages of decision making before they settle their choices and buy their home. Answers to some primary questions such as those listed below will direct your focus towards the right type of property:
Are you starting a family or planning to have more children? How many bedrooms will you need to live comfortably? How many bathrooms will you need? Will a home office be required? What type of heating fuel do you prefer? Is air conditioning an absolute must in your new home? Would you like to buy a house with a fireplace, woodstove, finished basement, garage etc.?

C. New home versus resale home

New home – Among the advantages of buying a new home is the opportunity to upgrade or choose certain items such as flooring, kitchen and bathroom cabinets, finish materials, siding, plumbing and electrical fixtures. This means that your new home will be built according to the latest building code, electrical and energy-efficiency standards will apply.
A builder’s warranty is available through Ontario New Home Warranty Program and must be obtained when buying a new home.
Some of the disadvantages of owning a new home may include: neighbourhood amenities may not be yet completed it he house is in the new development area. As well, for unspecified prolonged time periods, new home owner may encounter problems such as: construction noise, dirt, commercial traffic and unsafe conditions, little to no landscaping or trees.

Resale homes are generally located in established or mature neighbourhoods. Landscaping, mature trees and fencing are usually present. Resale homes may have a swimming pool, or a larger lot with space for potential amenities. Some of the disadvantages of buying a resale home may include: maintenance costs which will likely be higher than for a new home and out dated styles. Before you buy a resale home, you may require a professional home inspector to check for structural problems. You may want to renovate or update this home.

The cost of the home will vary depending on location, type of housing, the type of ownership (condominium versus freehold), the size of the home and the amenities available in the surrounding area.

I can help you navigate through these questions and effectively facilitate the home-buying process and help you focus on your needs during a short meeting session. Please contact me at Main Page Contact: Tom Witek 613-314-1199 or twitek@prutcr.com to schedule an appointment at your convenience.

Relocating to Ottawa

2005-08-21T09:20:00.000-07:00

Relocation Services to Ottawa

Ottawa is ranked among the world's most desirable cities in which individuals and families can buy property, live a good life, work and prosper. Ottawa is celebrated as one of the nices world's capitals with growing housing market, business enterprises, fine dinning and entertainment spots. When relocating to Ottawa, people find new construction housing, family homes, century-old heritage stone homes, high-rise and medium-size condominiums and large country estates.

My name is Tom Witek. When relocating to Ottawa, as a member of Ottawa Real Estate Board, working in the capacity of your realtor, I can provide you with listing information on housing choices in Ottawa, real estate properties offered for sale, investment properties and rental information. When you buy a property with me, you can be confident that all aspects of the real estate transaction will be discussed and dealt with in a timely and consistent manner.

Main Page: Contact Tom Witek at 613-314-1199 or twitek@prutcr.com

Mortgage Calculator — How Much Can You Afford?

2005-08-19T09:07:00.000-07:00

There are several factors which are considered by lending institutions when lending you the money for your dream home. The most important are your gross household income, your down payment and the mortgage interest rate. Here is a simple calculator from Canada Mortgage and Housing Corporation (CMHC) which lets you determine your mortgage affordability.

Please click My Mortgage Affordability

Main Page: Contact Tom Witek

Buyers’ Real Estate Services

2005-08-18T15:17:00.000-07:00

Tom Witek provides outstanding real estate services to Buyers in Ottawa region.

Tom’s Buyers are assured to receive up-to-date information on Ottawa’s market. Tom’s unique approach to home-buying creates a pleasant, stress-free atmosphere for the Buyers.

Tom has the ability to focus on Buyers’ preferences, needs and wants. Tom offers a step-by-step approach in acquiring dream property for Buyers. Tom Witek provides Free Market Evaluation to Buyers.

Main Page: Contact Tom Witek

Sellers

2005-08-18T08:23:00.000-07:00

Tom’s Sellers are assured to receive an exceptional service, to attain the highest price possible for their property, and maintain the highest visibility of their homes in Ottawa’s real estate market.

Tom’s Sellers can benefit from well-known marketing strategies that expose their home to the highest number of potential buyers.

Tom Witek is the member of Ottawa Real Estate Board and upholds the highest real estate standards. Tom Witek provides incomparable real estate services to Sellers.

Main Page: Contact Tom Witek at 613-314-1199 or twitek@prutcr.com

MLXCHANGE MAIN AGENT PAGE

Ottawa MLS Listings

2005-01-01T15:46:00.000-08:00

Main Page: Contact Tom Witek

Ottawa MLS Listings

Hello,

Thank you for visiting my website. I am here to help you buy your next home.

You can use the interactive search of active listings feature in the area of your interest. Once you click on the weblink, you may want to fill in the type of properties you are currently looking for and save your search. Each active listing shows a MLS Number, please make sure you take a note of this number.

Once you call me with these MLS numbers, I can give you extra details about these properties and the times available to see your chosen properties. Call me with the MLS numbers that caught your eye at 613-314-1199 or e-mail me at twitek@prutcr.com

I will arrange a meeting at the time convenient to you. Best of luck in your home search. Sincerely, Tom Witek

You can make your selections by clicking on this link:

ACTIVE MLS LISTINGS IN THE OTTAWA AREA