Do I need a lawyer or notary to complete my real estate transaction?
Yes, you do. The completion of real-estate transaction is based on undertakings (promises) exchanged between the lawyer/notary representing the buyer and the lawyer/notary representing the seller. The funds are drawn from and received into the lawyer’s/notary’s trust account and disbursed according to the undertaking.
Notaries are limited in the services they may provide. Only lawyers can provide you with legal advice on issues that may come up before, during, and after the completion of your transaction. Also, there is a misconception that notaries are cheaper than lawyers. Lawyers’ conveyancing fees compare favourably with notaries’ fees.
How far ahead of completion should I choose a law firm to represent me?
It is advisable to choose a lawyer at least two weeks before your completion date. This will allow some lead time for us receiving documents and providing you with the accounting breakdown of your transaction in advance for your review.
What happens once I choose a law firm to represent me?
Once you have chosen your representative, let your realtor and your lender (if you’re a buyer) know who you’ve chosen. The realtor will proceed with providing your representative with the contract documentation and your lender will provide your representative with mortgage instructions.
What is the difference between “tenants in common” and “joint tenants”?
Joint tenants own the property in equal shares, have an equal interest in the property, and an equal right to use the whole of the property. If a joint tenant dies, his or her interest passes to the surviving joint tenant(s) and does not normally form part of the deceased’s estate. Joint tenancy is a common choice for spouses who want to ensure that upon the death of one of them, the surviving spouse will have full ownership and use of the property.
Why do I need to provide my down-payment by a bank draft or certified cheque?
In a real estate transaction, your lawyer/notary needs to make sure that the funds they receive are “certified/guaranteed funds”. Personal cheques are not guaranteed funds because they have a “clearing period”. Wire transfers can be problematic due to the deductions for wire fees and a time delay in the transfer. Bank drafts and certified cheques provide the certainty that the funds can be used right away to complete your transaction.
How much do I need to pay for Property Transfer Tax?
Property Transfer Tax (PTT) expense equals to 1% of the first $200,000 and 2% of the balance of the purchase price. For example, if you buy a $600,000 home, you will pay $10,000 in PTT.
What is a co-ownership agreement and do I need one?
A typical co-ownership agreement defines the financial contributions each party made towards the purchase price and the responsibility for any mortgages registered against the title. It also clarifies the percentage contribution that each owner must make towards common expenses – such as property taxes, minor repairs, utilities, cable, and strata maintenance fees. The co-owners may also be interested in defining the “ground rules” about the use of the property and mechanism for buy-sell when co-owners wish to part ways. The benefit of having a co-ownership agreement is that parties address any issues upfront to prevent disagreements and uncertainties down the road.
What is a bare trust agreement and do I need one?
A bare trust agreement is a declaration of a trust arrangement between a “nominee” and a “beneficial” owner. The beneficial owner of the property is the person who makes a capital contribution towards the equity in the property. For reasons of convenience, estate or tax planning, a beneficial owner may appoint someone else to hold the title to the property or join in the legal ownership (a “nominee”). The agreement will define that the nominee must follow the directions of the beneficial owner when dealing with the property and will receive proceeds from the sale of the property.
Can I add/remove someone as a co-purchaser or co-owner of the property?
If you want to add or remove a buyer after you’ve already signed a purchase contract, you may be able to do so by executing an addendum or assignment of the contract. You should discuss any changes to the buyers and/or the type of ownership with your lender if you’ve already arranged for financing. Changing ownership once the purchase transaction has completed is a little more involved. In that case, you may not only have to consider the effect that change will have on your mortgage, but also the payment of additional legal and Land Title Office fees and potential property transfer taxes.