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LEGAL CONSIDERATIONS IN BUYING PROPERTY |
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BEFORE WRITING THE OFFER: It is advisable to consult a lawyer before you sign an offer to ensure that you are leaving enough time to complete the paperwork for the sale and to ensure that all the subject conditions satisfy your concerns. ONCE THE OFFER IS ACCEPTED AND THE CONDITIONS REMOVED: Your real estate agent will send the signed agreement of the Purchase and Sale to the lawyer of your choice. You should check with your mortgage lender first to ensure that the lawyer you have chosen is approved by the lender. Your lawyer will perform a title search and if necessary, order copies of the subdivision plan to ensure you are getting the parcel of land you think you have purchased. Also he/she will ascertain any changes on title that cannot be discharged by the Vendor. Your lawyer will require you to know who is to be the Registered owner or whether title is to be in Joint Tenancy so that on the death of one owner, the property passes to the survivor; or as Tenants in Common, where, if one owner dies, that owner's interest in the property passes through his or her estate. On receiving mortgage instructions from the lender, your lawyer will prepare all the mortgage documents. The majority of lenders will require a land survey ( known today as a Surveyor's Real Property Report) showing the location of all the structures which currently exist on the property. You should ask the vendor if they have an existing survey. If a survey exists, it may have to be updated by a licensed Land Surveyor if changes have occured. Such changes may be an addition to the original building, a detached garage, carport or shed or a pool etc., which does not show on the original survey. This information is vital. Without an up-to-date survey, your lawyer may not be able to offer a legal opinion regarding the size of your property, or comment on any problems which may arise, such as encroachments, rights of way or easements. Further, he/she cannot comment on whether the property complies with local by-laws. Most lenders will require you to have fire insurance showing the lender as the first loss payee on the policy. |
Your lawyer
will arrange a meeting with you to sign documents which are required to
complete the purchase. In addition to the balance of the purchase price,
you will require the following funds prior to closing. a) Land Transfer Tax b) Property Tax Adjustment This is calculated over the calender year and generally paid in the middle of the year. You will receive a credit if you close before the taxes are paid and you will be required to pay the balance of the year if you close after the taxes have been paid. c) Utilities Adjustments These could include water taxes or tolls etc. d) Legal Fees and Disbursements Further, you should check with your lender to ensure there are no tax holdbacks, interest adjustments, processing or appraisal fees which will reduce the amount from the lender. The balance of cash to complete the purchase must be delivered to your lawyer by means of a certified cheque prior to closing. CLOSING: On registration of the transfer, monies owing to the Vendor will be paid to the Vendor's lawyer who will, on his/her undertaking, clear all mortgage and other charges from title. You, as the Purchaser, will receive a duplicate registered copy of the Transfer/Deed from your lawyer which reports you as the registered owner. Possession of your new home is generally not available until 6 P.M. the afternoon of the closing date. Make your moving plans accordingly. ENJOY YOUR NEW HOME!  |
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please contact Robert Pugh via: Office: (613) 831-4455 Fax: (613) 831-4781 Direct: 24 Hour Pager thru the Office |
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