What are the legal fees and disbursements?

The cost to close a home sale, purchase or refinancing includes legal fees, disbursements and other charges incurred in closing the transaction. Typical disbursements include the cost of registration of documents, Deed Transfer Taxes (on purchases only), property tax certificates, water and sewer certificates and any other expenses that may be required by the financial institution such as title insurance in lieu of a survey certificate.

How much will this cost?

Some cost elements of the transaction are determined by the purchase price and registration charges are per document per individual property. Our calculator factors fixed cost items based on one property, one ownership transfer and one mortgage being registered and estimates the cost. Please reconfirm your actual cost of closing with your Lawyer.

What is meant by Adjustments?

Property taxes, water and sewer charges, rent, condo fees, heating oil and other similar items are considered normal adjustments which are calculated to the date of closing, and apportioned to either the Seller or the Buyer. Generally, property taxes have to be paid in full for the current year on closing day.

Do I need to pay GST/HST?

GST/HST is not applicable on used property (existing homes). However, in purchasing new construction from a builder or developer who is a GST/HST registrant, GST/HST will be either included in the price or added to the price depending upon the agreement of sale.

What is Title Insurance?

Financial Institutions require Title insurance to insure the title of the property and in lieu of a Building Location Survey. Title insurance also protects the Purchaser's interest in the property title.

What is Land Titles?

Most every province has an Electronic Land Titles Registry System that records the title to legal ownership of the property. Each property has a unique Property Identifier Number (PID or PIN) that names the owner(s) and any liens or encumbrances registered against the property.

What is the difference between Registry System and Land Titles?

Properties not registered under the (electronic) Land Titles System are under the old (manual, paper record-based) Registry System and cannot be transferred for value or consideration without an application being made to migrate the property to the new electronic Land Titles System. Most Agreements of Purchase and Sale provide that the cost involved be borne by the Seller for this application. PEI and the Territories maintain paper-based land registry systems.

What is a Certificate of Registered Ownership?

Official proof of ownership of a property registered on the Land Titles Registry System.

What are Restrictive Covenants?

Restrictions registered against a parcel that governs the use of a property and / or limitations on the physical structure(s) that may be created on a property.

What are Joint Tenants?

The method of owning a property where more than one person is registered on title whereby the title automatically goes to the survivor of those on title and does not form part of the deceased owner’s estate.

What are Tenants-in-Common?

The method of owning a property where more than one person is registered on title and upon the death of an owner that person’s share forms part of the estate of the deceased owner and does not go to the survivor(s) who is also registered on title.

What is manner of tenure?

Holding property as either Joint Tenants or Tenants-in Common

What ID’s are needed?

You will need to provide at least two pieces of ID, at least one of which is required to be a government-issued photo ID.

What is a PID or PIN #?

The number assigned to an individual parcel of land.

What is a PAN #?

The Property account number for property taxes assessed against a property.

Why do I need to supply a copy of my identification?

All provincial Land Titles Registry Systems require proof of identification to ensure the accurate recording of all names on title, and to protect against fraudulent conveyances.

Can the same Firm represent both sides of the Transaction?

Law Society regulations provide that this is permissible so long as there is full written disclosure and agreement by all parties. Your Lawyer will provide details.

Do I need a Home Inspection report?

There is no regulation requiring one at this time but it is good practice in purchasing an existing home.

What are Wet Lands?

All Provincial Governments have wet land regulations that can affect the right to construct a dwelling on a property. Your Lawyer should consider this when purchasing vacant land on your behalf.

How do I add a file attachment to my input form?

HomeClosers.ca provides “browse” buttons to locate your file (photo ID or document) on your computer. The best resolution for an attachment is usually obtained by use of a scanner; alternately a smart phone photo usually also has image quality sufficient for use by your HomeClosers lawyer.

I have been asked by an agent for a showing, but he wants me to sign an agreement first. Should I?

If you are selling (or buying) without a Realtor, there is a good chance that a Realtor will approach you with the prospect of either a potential buyer (or seller, as the case may be). A prudent person will not a) sign any legal document without first reviewing it with their lawyer, b) formally commit to any specific compensation arrangement until they have a written offer or c) open their home without considering the good faith of the other parties.

I am a seller – should I accept a conditional offer to purchase my home?

From a business perspective, a conditional offer is the property equivalent of dating Mr. Wrong until Mr. Right comes along. If accepting a conditional offer, a prudent seller will ensure there is a) agreement that the property can continue to be marketed and b) a provision for rapid release of the conditional acceptance should an attractive firm offer be received. A clause that gives the conditional buyer the opportunity to match any subsequent offers should be avoided.

I know I will need to do a disclosure document. Should I do that now?

The prudent seller understands that the serious buyer will require detailed information regarding the property. The information required is detailed in our Property Condition Statement. The provision of this formal document is usually within 5 days after having signed an Agreement of Purchase and Sale, although the existence of any significant concerns should be communicated to the prospective buyer before the Agreement of Purchase and Sale is signed.

How do I turn an offer into a legally binding agreement?

An offer to sell or buy a property is made into a legally binding agreement by writing and signing a formal Agreement of Purchase and Sale and exchanging a deposit (usually made payable to the seller's law firm name, in trust) to secure the agreement.

How much should a deposit be to secure the purchase or sale of a property?

Although good practice dictates that the amount of the “binder” deposit should be 3-5% of the agreed price, and a minimum of $5,000, the typical amount varies greatly in different regions of the country. In Atlantic Canada, deposits are no less than $500 and usually not more than $1,000. In central, western and northern Canada the amount of the deposit is usually 3-5% of the agreed price. In all cases, a seller should ensure that the amount of the deposit is sufficient for their time and expense should the buyer fail to complete the deal, as "suing" a buyer for failure to complete a purchase transaction is almost always uneconomical. Prospective buyers should be aware that if they fail to complete the transaction after expiry of all conditions the deposit is forfeited to the seller.

Is a rent-to-own agreement advisable for my home?

Real property rent to own agreements are uncommon because they go bad much more frequently than they go well. Good reasons for an owner to do a rent to own agreement include having an occupier in the property to care for it and to start the process of reducing one’s investment in a property they no longer live in; and for a renter to start the ownership investment when they are otherwise unable to do so. However, the risks to both owner and renter are numerous and substantial, especially when one is not previously known to the other. You should always consult with your lawyer prior to agreeing to any rent to own arrangement.

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