Legal Ease

BEFORE SIGNING THE OFFER:

Consult with your attorney to ensure that there is sufficient time to complete the required documentation for the purchase, and to ensure that the conditions of purchase are correct. It is essential to have legal representation when purchasing a home to protect your interests and to register your title.

AFTER THE OFFER IS ACCEPTED AND SUBJECTS REMOVED:

Your realtor will send instructions to your lawyer or notary public in regards to the required documentation. Your lawyer or notary public will order an up to date title search, order copies of the subdivision plan, and find out if there are any charges on title that will not be discharged by the Vendor (such as statutory building schemes or easements).

Upon receipt of the mortgage instructions from the lender your lawyer will prepare the purchase and mortgage documents. Most lenders require a survey certificate showing the exact location of the house on the lot. Be sure to have your realtor check with the Vendor to see if there is a certificate available that will be accepted by the lender. If one is not available, your lawyer will have to order one at your expense. An insurance policy will be set with your lawyer to sign the documentation and you will be advised of the amount required to complete the purchase. In BC, in addition to the balance of the purchase price, you will need the following amounts prior to closing:

1. Property purchase tax

1% of the purchase price up to $200,000

2% of the purchase price over $200,000 (a rebate is available in certain cases. Ask your lawyer)

2. Property tax adjustment

Calculated on a calendar year and paid in the middle of the year. You will get credit if you close before the taxes are paid and you will need to pay for the balance of the year id you close after the taxes are paid.

3. Utility adjustment

Water taxes or tolls in some cases, or water licenses

4. Strata fees

Additional fees paid to strata council if you purchase in an area that is strata controlled

5. Legal fees and disbursements

These fees usually consist of professional fees, plus out of pocket expenses that become due on the closing date

CLOSING

By the closing date the purchase agreement is transformed into a number of legal documents to be signed by the buyers, sellers and witnesses.

Upon registration of the transfer of closing, the mortgage proceeds, if any, will be advanced to your lawyer on his undertaking to clear any mortgages or other charges off title. Be prepared with "certified cheques" for any outstanding payments. Once any charges are cleared off title, you will receive STATE owner.

POSSESSION of your new home is usually not given until the funds have been received by the Vendor of his lawyer or the date set out by the purchase agreement.

CUSTOMARY COSTS:

In particular circumstances there may be additional costs; but the following costs are applicable in most circumstance:

COSTS TO BE BORNE BY THE SELLER:

Lawyer or Notary Fees and Expenses:

• attending to execution of documents
• discharging any encumbrances

Costs of Clearing title, including:

• discharge fees charged by encumbrance holders
• pre-payment penalties

Real estate commission

Goods and Services Tax

COSTS TO BE BORNE BY THE BUYER:

Lawyer or Notary Fees and Expenses:

• searching title
• investigating title
• drafting documents
• Land Title Registration fees

Survey Certificate (if required)

Cost of Mortgage, including:

• mortgage company’s lawyer/notary
• appraisal (if applicable)
• Land Title Registration fees

Fire Insurance Premium

Sales Tax (if applicable Property Purchase Tax)

Goods and Service Tax