| |
| REAL ESTATE - PURCHASE |
 |
| |
| Normal costs: |
| |
Legal fees*: $800.00 [for deals over $500,000 additional charges may apply]
[the Metropolitan Toronto Lawyers Association's suggested fee is $1000.00 plus .5% of the purchase price over $100,000; source: Ontario Legal Directory, 2007] |
| GST: $40.00 |
| |
Disbursements: [these are approximate "out of pockets" which can vary a bit in each case]
Title search: $50
Execution searches: $25
Tax certificate: $50
Title insurance: $250
Register deed: $70
Register mortgage: $70
Bank charges: $20
Copies: $15
Postage: $6
Couriers: $20
Sundry: $15
GST: $10
|
| Total: $1450 more or less |
| |
| |
| Land Transfer tax is extra, and is based on your purchase price |
| |
| |
 |
| |
| |
| Note: purchasing a new construction from the builder has additional work. Add $300 plus GST to review the contract and handle the interim occupancy. |
| |
First Time Homebuyers resale home
First Time Homebuyers new construction |
 |
| |
| When you buy a home, there are a number of legal matters that need to be resolved. |
| |
| First, we need to review your Agreement of Purchase and Sale with you, to ensure you understand the terms of the deal; the dates, the amounts, the obligations created, the expenses involved, including Land Transfer tax. This is a legal contract, and is usually for a very large amount of money; it needs to be taken seriously. You are not buying a loaf of bread at the corner! |
| |
| Second, we will review title of the property you have chosen, and prepare a list of issues that we need to see resolved by the seller (called "requisitions": paragraph 8 of typical Agreements of Purchase and Sale sets out the "Requisition Date"). These are concerns about what is on title to the property you are buying, such as any mortgages, executions or liens to remove, for instance. These need to be resolved before closing, so that you are purchasing a "clean" title. |
| |
| Third, we need to do the mathematics with respect to property taxes, condominium fees, and any other transitional charges to balance out the purchase price to the date of closing (called "adjustments"). |
| |
| Fourth, we need to communicate with your intended mortgage company, and arrange for it to provide the necessary funds for the closing date, and make sure you are aware of the balance of funds that you will be required to provide; we also arrange to obtain a policy of title insurance to cover the possibility of hidden, or latent, defects in title. |
| |
| Fifth, we need to sit down with you and explain the documents that you are signing, to be sure you understand, and to obtain your instructions about delivering to you your new keys! |
| |
| Sixth, we need to attend to the actual closing, and do the swap: your money for their house! And to attend to all the banking (getting your money in, and the mortgage company¹s, issuing cheques to the seller and his lending company, and to the Minister of Finance for the tax), and then reporting it all to you, your bank, and the title insurer afterwards. |
| |
| Seventh, because an existing mortgage is rarely discharged at closing, to make sure that the seller's discharge arrives before too many months have passed. |
| |
| You are responsible for arranging a building inspection, contacting utilities, and obtaining life insurance. I can refer you to contacts if required; just ask. |
| |
| |
|
| |
|
| |
| |
| |
|
| |
| |
| |
|
| |
