We finally got a down payment together and now we’re looking for our first house. We’ve been checking out the “for sale by owner” web sites and can’t figure out how to proceed with a house we’re interested in purchasing in Proctor. Could you fill in some detail on points we should cover before we sign the deal?

There is obviously a significant amount of money involved in a home purchase transaction. In fact, it is probably the most money any of us will spend on a single purchase in our lifetime. So caution is a good buzzword to remember. Personally, I recommend using a realtor for at least your side of the transaction because they know their way around these rocky shoals and in some ways they are like a fishing guide to a person in unfamiliar waters.

Here are some other things to consider. Make sure you have a written agreement that includes a list of reasonable “subject to’s” such as subject to you obtaining financing, subject to a favourable building inspection and subject to obtaining house insurance. Subject to’s and times for their removal are among a list of topics about which a realtor can give advice and assistance.

Don’t forget to have the owner fill out a comprehensive “disclosure” statement. These forms are available at your local office supply store. This is an important document that asks the owner a long series of questions about the history of the property and building(s). All disclosure forms are not equal. Select one that asks specific and unambiguous questions. For example, some disclosure forms ask if the owner knows of any renovations or construction on the property completed without permits within the last 60 days. This question would be more revealing if the 60-day limits were deleted. So choose your disclosure form with care. Be sure to provide a copy of the disclosure to your home inspector. These forms often contain very useful clues that help develop a more accurate assessment of the condition of the home and property.