The Way Canadians Can Become Homeowners

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The Way Canadians Can Become Homeowners

• Rent To Own Power Of Sale Credit Management

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Synopsis

1. Rent To Own A Condo A Dream Or A Nightmare?
2. The Best Win-Win Option To Have A Home In Canada
3. Rent-To-Own Property A Profitable Choice For
   Canadians
4. Benefits Of Hiring An Excellent Canadian Credit
   Management Expert For Your Business
5. Getting To Know Power Of Sale In Canada Main
   Elements Regarding This Concept

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Rent To Own A Condo A Dream Or A Nightmare?

• The benefits of a rent-to-own condo are many.
  Firstly, regarding the maintenance of the place,
  it is not a secret to anyone that furniture
  suffer decay with the passing of years.
  Consequently, a simple change of water pipes, or
  replacing faucets can cause regular expenses to
  your pocket. Families in condos dont have to
  worry about these issues as condo managers have
  to deal with these problems. Renting a condo does
  not pose any responsibilities regarding repair,
  renovation or even maintenance of properties. In
  fact, renting to own a condo depends on the
  lifestyle of each family. For example, for
  Canadians who feel identified to the sense of
  community, the life in a condo is a good
  scenario. It has been proven that people that
  rent a condo tend to coexist much closer with the
  other similar families than when living in a
  house.
• Regarding the condo legislation in Canada, it is
  very efficient and is not that restricting. The
  usual limitations found in these rules are the
  amount of persons per unit, the presence of pets,
  partying times, among others. These and many more
  are very explained in the Canada Mortgage and
  Housing Corporation Guide, which is found in
  every condo throughout the country.

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The Best Win-Win Option To Have A Home In Canada

• Its easy to see the benefits of rent-to-own
  homes for tenants. There are many people in
  Canada who cannot apply for a mortgage due to
  their insufficient income record. Taking this
  into account, people can improve their records
  during this period. By paying on time your rental
  according to what is established in the
  rent-to-own home contract, may improve your
  payment record and your chances to get a loan.
  Sometimes its impossible to achieve, in a short
  period of time, the necessary down payments to
  get a mortgage (normally between 2 or 3 of the
  total value). Rent-to-own home is a viable option
  to enjoy a home while creating the necessary
  conditions to buy one permanently.

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The Best Win-Win Option To Have A Home In Canada

• For Canadian landlords, there are some other
  benefits. If you are a person who has tried
  selling a house for some time without no success,
  maybe you should consider solving this problem by
  simply renting it. According to research done
  about the Canadian real estate business, the
  majority of rent-to-own home tenants end up
  buying the house. So, if you can create a
  rent-to-own contract, your chances to sell the
  property will increase. Moreover, this kind of
  tenants are more committed with the property,
  because they feel a sort of attachment to that
  place. Besides, this kind of contracts gives the
  landlord certain frequent sums of money to cover
  any damages that may be caused by tenants. Also,
  in the long run, the rent fees are an alternative
  for not completely selling the property.
• There is also another benefit of rent-to-own
  homes which may change according to landlords and
  tenants. In the contract the purchase end price
  is agreed. After this, despite the fluctuations
  of the Canadian market, the price will remain
  unchanged.

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Rent-To-Own Property A Profitable Choice For
Canadians

• This option is also known as lease purchase. It
  allows tenants to buy the house they are leasing.
  In order to do that, they would pay a few more
  dollars over the normal rent payments in the
  local market. Many Canadians think this option
  involves interest rates but it actually does not.
  The only thing you pay besides your normal rent
  is an amount of money to create a fund which
  would work as down payment until the property is
  finally bought. Thats why your monthly rental
  will be a bit above market prices.
• An essential aspect in this issue is the presence
  of a lawyer. Since this kind of contracts are
  very technical, the best thing that tenants and
  landlords can do is hire one to write the papers
  after a preview negotiation. Legal advisory is
  useful for both in order to do everything
  according to the law and to avoid further
  misunderstandings.
• As a tenant, the most important thing for you is
  to take over control using your option fee.
  This is how the above-mentioned amount of money
  comes into play. You should always be notified
  that this money has been received by the
  landlord. To do so, you can ask him/her for bills
  to make sure. Another thing that is recommended
  by experts is trying to include your name in the
  title of the property. This is very difficult,
  but if you can get it done, it is harder to be
  affected by a breach in contract.

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Benefits Of Hiring An Excellent Canadian Credit
Management Expert For Your Business

• Firstly, a Canadian credit management expert is
  primordial in identifying which customers have
  high credit risk, meaning, which are less likely
  to pay you back the money. They have the power to
  cause significant limitations to your cash flow
  and ultimately make you lose money. An expert
  will check their credit potential through various
  ways like credit risk reporting which points out
  a dark past in a companys credit history and
  payment practices. A credit report doesnt mean
  that in the end you will actually get paid with
  real money, but it reduces the risk of a
  non-payment outcome.
• Secondly, credit management services not only
  stop at credit risk studies. It goes beyond that.
  For instance, after identifying clients with a
  good credit background, there still remains an
  ongoing credit monitoring to determine if their
  credit risk balance changes. This will alert your
  business immediately so that you can take
  precaution actions to protect yourself
  financially and at the same time, guarantee your
  payments.

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Benefits Of Hiring An Excellent Canadian Credit
Management Expert For Your Business

• Thirdly, a credit management expert can be the
  right person to aid in drafting payments
  contracts which warranties your payment in the
  future. Clients in Canada which are not keen to
  signing them are potentially inclined to not
  paying you with actual cash. Having professional
  assistance ensures that your terms are always
  respected when dealing with clients. And if it
  gets to trial, experts can demonstrate bad faith
  in your clients behalf as well as preparing
  excellent settlement offers to make you come out
  on top.
• Last but not least, it is normal that you dont
  know the specifics regarding credit management. A
  Canadian expert on the field can not only assist
  you but also teach you the basics to manage
  effectively your credit. Showing you the tools to
  guarantee your financial status on your own can
  make a complete difference when you cant afford
  a credit management expert indefinitely.

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Getting To Know Power Of Sale In Canada Main
Elements Regarding This Concept

• There are many elements which help us understand
  its functioning. When a Canadian vendor is
  selling the property under Power of Sale, he/she
  must pay out all prior encumbrances like
  mortgages or liens. However, lets bear in mind,
  that dealing with mortgages is very tricky, and
  POS is not exempt of its effect. For instance, if
  a house is sold in Canada under mortgage for the
  first time, it can employ Power of Sale by
  including the bank and fixing the situation. But
  a second mortgage of the same property loses the
  claim and right to Power of Sale.
• Also when the property is on a mortgage, and a
  Canadian bank sells it using Power of Sale for a
  superior price than that of the mortgage, the
  remaining money goes to mortgagor/previous owner.
  This same argument goes on the opposite direction
  when, for example, the bank is unable to sell the
  property for the price of the debt. Despite
  selling using POS, the new buyers will get the
  property clean of debts but the bank can sue the
  previous owners.

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Getting To Know Power Of Sale In Canada Main
Elements Regarding This Concept

• Seeing this only sheds some new information about
  Power of Sale, we can also see how complicated it
  is. But dont be frightened, there are many
  benefits regarding this type of transaction in
  Canada. Firstly, its the time. When buying under
  Power of Sale, there are no court actions hence
  making it much faster and efficient to sell than
  to sue for possession and then selling, also
  known as foreclosure. Secondly, its the cost.
  Selling under POS requires the entire process to
  be done in the solicitors office, making it
  cost-effective to avoid going to court. Thirdly,
  its the clearance of encumbrances. POS makes it
  possible for you to acquire the property and
  involve the bank to solve any debts directly with
  the mortgagor.

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The End

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