---

HELPFUL HINTS WITH YOUR REAL ESTATE TRANSACTION

REVIEW - since the entire transaction is guided by the Agreement of Purchase and Sale, it's drafting should be taken seriously, have your Lawyer involved in drafting it, ............. if this is not possible, I recommend that a clause be written into the Agreement making it a condition that your Lawyer review and approve of its terms within 48 to 72 hours. This Agreement  is the foundation for everything that follows.

INSPECTIONS - since you will want to ensure that the property is in good condition, that the structure is sound, that the furnace is in working order, that the roof does not leak or to determine if there are any other problems, your Agreement should contain a clause that allows for an inspection by a qualified building inspector. This is normally at your expense, but it will be money well spent, especially if problems are disclosed.

In addition you will be permitted to visit and inspect the premises in the 24 hours preceding the closing, to ensure that the condition of the property has not changed since the signing of the Agreement.

FINANCING - you should arrange, before entering into your Agreement to have your mortgage prepared, in this way, you have pre-determined a price range for your purchase. If this has not been arranged then your first task, after entering into the Agreement is to approach a Bank or lending institution to obtain approval of your mortgage financing for the purchase.......

Looking for a Mortgage  ..............check out:

Canadian Imperial Bank of Commerce (CIBC)

Toronto Dominion Bank (TD)

Needing to convert a foreign currency into Canadian Dollars .............check out:

Convenient Currency Converter

Needing to calculate buying versus renting .......or the amortization of a mortgage .....check out:

 The Mortgage Calculator

LOCATION CERTIFICATE- a location certificate ensures that the dwelling or other buildings on the property are located within the boundaries of the lot described in the deed, that you receive the approximate location of the driveway, but it's overriding purpose is to provide insurance against encroachments off or on to the lot which could materially affect the value of the property.
Generally, the previous location certificate does not achieve this purpose, it is provided by the vendor for information purposes only and there is no right to rely upon a certificate that has not been prepared by a surveyor paid by the Purchaser. In other words, if an older certificate is incorrect, it is unlikely that you, as purchaser, would have any legal recourse against the Vendor or the Surveyor.
A lawyer certifies paper title and does not certify that your dwelling is located within the boundary lines, this is the responsibility of the Surveyor. Therefore, you should obtain a new or updated location certificate prior to closing, or title insurance can be arranged through Stewart Title

TITLE SEARCH - a search, is a history of ownership of the property you are purchasing. The title search, to insure that you have good and marketable title,  is conducted at the Registry of Deeds and establishes that  the Vendor is the true undisputed owner of the property and to ascertain whether or not there are any problems which may or may not affect the validity of the title to the property you are purchasing. Once clear title is obtained,  the closing of the property proceeds and you receive a deed from the Vendor which conveys the property to the Purchaser.

TAKING TITLE - title to the property describes the manner in which you wish to take ownership of the property. The full names of the owners are describe on the deed and indicate how title is taken by them. The manner of taking title should be reviewed with your lawyer as there are long term ramifications of which you may be unaware. Title can be taken as Joint Tenant's or Tenants in Common.
Title to the property, for a husband and wife, is most commonly, taken as Joint Tenant's, which simple means that the spouses have an equal share in the ownership. However, if one of the spouses should die, then the property is automatically passed to the survivor without the necessity of going through Probate and having to pay probate fees. The property, would however, still be subject to the existing encumbrances such as the mortgage placed on the property at the time of purchase, unless the mortgage was previously paid in full or covered by life insurance. Most mortgage lenders will give you the option of Mortgage Life Insurance, and this should be examined carefully.
Title taken as Tenants in Common requires some careful consideration. If one of the holders of the title in this manner should die, then his or her interest in the property would be given to the individual or individuals named in that person's Will. If there is no Will, then the property would pass to that individual's heirs according to Law and Probate Fees would be applicable.  (This is discussed further on another part of my site)
It may be wise, after careful consideration, to take the property in only one name. This may be done for income tax purposes or to protect the property against the possible debts of the other owner.

FIRE INSURANCE - The lending institution or mortgage company financing your purchase will insist that fire insurance be placed on the property to cover their interest in case of a loss of the residence by fire. In this way they are assured of obtaining repayment of the money loaned in cases of los by fire. Although they insist on sufficient fire insurance to cover only the mortgage amount, it is in your best interest to insure the property for it's full insurable value. This will allow you to rebuild in the case of a total loss. Written confirmation, indicating the required loss payable, will be must be obtained before the closing the transaction. If the property being purchased is utilized as a rental property, or for commercial purposes or is to remain vacant for any length of time,  there are specific endorsements that are required. These should be discussed with your insurance agent.

HARMONIZED SALES TAX - a newly constructed residence or one which has been substantially renovated and not occupied for a period of one year is subject to the Harmonized Sales Tax at the rate of  15% calculated on the acquisition cost. It is important to ensure that the Agreement of Purchase and Sale is written in the proper manner to determine if the the H.S.T. will be applicable to this particular transaction.

MUNICIPAL TAXES  - A tax certificate is obtained from the Municipality in which the property is situate to ascertain the status of taxes and the amount of any betterment charges for sewer, sidewalk, paving or curb improvements done or commissioned by the Municipality. Betterment charges are generally paid for by the Vendor prior to closing as these charges form a lien or prior charge against the property. If the betterment charges or outstanding taxes are not paid, then the Municipality, has the right, after giving the owners sufficient notice, to sell the property to recover the outstanding amounts. In Nova Scotia the Municipal tax year is from April 1 to March 31 of the following year and the taxes are adjusted as between Vendor and Purchaser to the day of closing..

DEED TRANSFER TAX - Subsequent to closing of the property transaction the deed together with the deed transfer tax (to a maximum of 1.5% of the purchase price), collected at the time of closing, is forwarded to the relevant municipality. Once the deed transfer tax is paid, the deed is stamped by the Municipality and forwarded to the Registry of Deeds for registration, along with the mortgage and other relevant documentation.
THE CLOSING
 
 
 

IN ADDITION:

        Upon receiving the registered documents, then a full report and certificate of title is issued to the Purchaser along with a certificate to the mortgage company.................

There may be other investigations required with respect to the purchase of the property, however these investigations are conducted on a property by property basis and may be specific to the property being conveyed..............

THINGS TO DO ..............Remember,  no matter where you live,  you have to change the utilities, cable, telephone, the oil delivery, water and don't forget that all important change of address.......... so all your friends know where to find you. Need help with your new address or postal code ......... Canada Post

Note: the information and material on this site is provided for information purposes only and is not intended to be a definitive statement of the law, nor should it be relied upon for legal advice. Each situation has its own peculiar circumstances to consider which may require in-depth review and considerations and the appropriate advise thereto. Always discuss important business decisions and have the documentation reviewed by your lawyer before signing.