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Legal Aspects of Your Real Estate Transaction
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You have just entered into an Agreement of Purchase and Sale to buy a new home or to sell your present home. The following is a brief summary of the steps that will be taken by your lawyer to complete the transaction.
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PURCHASE
Searches:
Your lawyer will receive a copy of the Agreement of Purchase and Sale from either you or your real estate agent and will conduct the following searches:
1. Title
2. Water
3. Hydro Account Status
4. Consumer Gas Account Status (if applicable)
5. Zoning Compliance
6. Hydro Work Orders
7. Writs Seizure and Sale
8. Tax Search (Realty Taxes)
for rural properties, the following searches will also be conducted:
9. Septic
10. Well Water
11. Unregistered Hydro Easements
Mortgage:
If you are obtaining a mortgage or mortgages in order to finance your purchase, your lawyer will obtain instructions from the mortgagee and prepare all mortgage documentation.
Insurance:
You should attend to obtaining insurance for the property, to be effective on the date of closing. It will be necessary for your lawyer to obtain a binder from the insurance company confirming the details of coverage and the mortgagee's interest.
Adjustments:
Prior to closing your lawyerwill receive a Statement of Adjustment from the vendor's solicitor. This statement provides from for adjustments made to purchase price i.e. Deposit paid, realty tax adjustment, cost of a full tank of oil (if applicable). There may be other adjustments.
Closing:
Prior to closing, your lawyer will ask that you come in to sign the documents required and to provide a certified cheque for the balance due on closing.
On the date of closing your lawyer or his/her agent will attend at the Registry Office. A sub-search of the property will be conducted in order to ascertain that no documents have been registered or judgements filed, affecting the property, subsequent to the initial title search done. Certified cheques will be exchanged for an executed deed and other documents as well as keys for the property.
Land Transfer Tax:
Land Transfer Tax is paid to the Treasurer of Ontario on every real estate purchase. Click on the following link to calculate the land transfer tax that you must pay:
WWW.Canadalegal.com/gosite.asp?s=2011
SALE
Your lawyer will receive a copy of the Agreement of Purchase and Sale. Your Lawyer will deal with requistions raised by the purchaser's solicitor, as well as prepare the Statement of Adjustments and Direction for Funds, specifying the manner in which funds due on closing are to be made payable. Should there be a mortgage or mortgages to be discharged, your lawyer will request payout statement from the mortgagee. Should the existing mortgage be assumed by the purchaser , then an assumption statement would be requested.
Your lawyer will receive all documentation received by the purchaser's solicitor and attend with you upon the signing thereof.
Upon closing your lawyer will attend at the registry office in otder to meet the purchaser's solicitorand exchange keys and documentation in return for certified cheque(s).
After closing, will attend to the registration of discharge(s) of mortgage and confirm same with purchaser's solicitor.
Subsequent to the closing of your transaction, either purchase or sale, your lawyer will provide a reporting letter detailing the particulars of the transaction and providing copies of relevant documentation.
The above information is believed to be correct, but is not warranted.
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