PURCHASE OF A HOME
As your solicitor, we will:
- Review your agreement of purchase and sale
- Review the survey or condominium status certificate/condominium documents
- Discuss with you the manner in which you wish to hold title/ownership of the property
- Complete a search of title to ensure there are no mortgages or liens or executions outstanding against the Vendor/Seller or any previous owners of the property
- Prepare all documentation for your purchase and any mortgage you may have arranged
- Discuss and review with you the Statement of Adjustments, being the calculation of the balance due by you to the Vendor/Seller on closing, as well as all other documentation to be signed by you
- Calculate the Ontario Land Transfer Tax and the Toronto Municipal Land Transfer Tax, if applicable, payable by you at closing
- Discuss with you our legal fees and disbursements as well as the cost of title insurance for you as a homeowner as well as for your Lender (your "mortgagee"), if any
- Arrange title insurance for you and your mortgagee
- Remind you prior to closing to contact the various utility offices (gas, hydro and water) to open your new accounts, to arrange house insurance, to arrange with the Builder (if you are purchasing a new home) your Tarion Warranty pre-delivery inspection, etc.
Please ensure that your insurance agent provides your solicitor with a binder letter confirming your new home is insured and that your mortgage company is noted on the said insurance policy as your mortgagee. Prior to closing, I will require a copy of the binder letter which I am to provide to your mortgage company before they provide me with the mortgage funds needed to complete your purchase. Please instruct your insurance agent to fax to me the required insurance binder.
Also, if you are purchasing a new home or new condominium, when you attend to complete the Pre-Delivery Inspection with the builder, ensure that you note on the form all work to be completed, repaired or outstanding by the builder. Both you and the builder are required to sign the Pre-Delivery Inspection Report. I will require a copy of the Pre-Delivery Inspection Report to submit to your mortgage company before they provide me with the mortgage funds needed to complete your purchase.
If you are buying a newly constructed condominium unit, please note that you will have two closing dates. The first closing date is the "Interim" or "Occupancy Closing Date", being the date you will be able to move in and occupy the unit. On this date, you will not be an owner, you will be an occupant and accordingly you will not be able to use your mortgage monies towards your purchase price. For your occupancy closing you will be required to:
- sign all occupancy documents
- pay any further downpayment/deposit monies. if provided for in the agreement of purchase and sale
- provide the Builder with post-dated cheques to cover monthly occupancy fees, calculated based on interest owing by you for the balance of the monies payable to the builder on final closing, estimated realty taxes and estimated common expenses/maintenance fees
The second closing is your "Final Closing Date" which occurs after the condominium corporation has been registered by the Builder, approximately two to five months after your occupancy closing date. For this Final Closing Date, you will be required to sign additional documents necessay to become the registered owner and any mortgage documentation required to obtain mortgage monies to be applied towards your purchase of the Unit.
