FAQ about Real Estate Closings to a Real Estate Lawyer.

Author: Everstone Law Professional Corporation | | Categories: Peel Lawyer, Real Estate Lawyer, Real Estate Lawyer Brampton, Real Estate Lawyer Mississauga, Real Estate Lawyer Ontario, Real Estate Lawyer Toronto

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What is a Title Search Date?

A title search date is noted on the Agreement of Purchase and Sale. It is the deadline that the buyers have to conduct off title and on title searches concerning their transaction to ensure that are no outstanding work orders, liens or encumbrances, restrictions, or any use of property issues that are affecting the property. In a purchase transaction the caveat “buyers beware” is of utmost importance. Buyer needs to be aware of issues that can be disclosed by a title search surrounding the nature of the transaction. At Everstone Law Professional Corporation, Real Estate Lawyer in Mississauga will guide and assist you with your transaction so that you are protected

What is net advance vs registered principal amount?

This is a question that potential homebuyers need to ask their mortgage agent. It is important when calculating closings costs that the buyer is aware of the amount of funds that will be provided by the lender. Registered principal amount is the total amount of the loan that is borrowed and which the lender is securing their interest by registering a mortgage/charge against the buyer’s property. Net advance is the amount of money that the buyer will be receiving from the lender (after deducting costs associated with the lender) to fund the purchase. It is important to know your closing costs so that you can be prepared to close your deal. Mississauga Real Estate Lawyer at Everstone Law Professional Corporation will help ensure that you are financially prepared to close your transaction by providing timely breakdown of closings to the buyers.

What is the Prescribed Information Form for Land Transfer Tax?

When purchasing a property in Ontario, a form will need to be completed by the purchaser(s) and submitted to the Minister of Finance prior to closing. This is normally done by the lawyer on behalf of the purchaser(s) and with the buyer’s acknowledgement of the answers. This form is to be completed for properties that are located in the Greater Golden Horseshoe region. The information provided to the Minister of Finance, includes but is not limited to: whether the property will be occupied as the buyers principal residence; the type of property; whether it will be leased; and personal information concerning the purchaser(s) to ascertain if they are foreign buyers and whether Non Residential Speculation Tax is to be paid. Should the reader want more information it can be obtained from the Minister of Finance website.

What is a retainer?

When contacting Everstone Law Professional Corporation the Mississauga Real Estate Lawyer will provide information to the client detailing the nature of the Solicitor- Client relationship. A retainer is contractual agreement between the Lawyer and the Client outlining the scope of services, the legal costs, and various other conditions and obligations concerning the transaction. Without a signed retainer agreement, the Real Estate Lawyer is not able to open the client file as the firm has no authority nor confirmation to work on the transaction.

What is Land Transfer Tax?

When the transaction involves a conveyance, the Purchaser(s) will be required to pay Land Transfer Tax to the Ontario provincial government. If the purchaser(s) is/are first-time homebuyers and meet the criteria for a rebate of Land Transfer Tax as outlined by the Minister of Finance, then the buyer(s) will be legible for the rebate in payment of the Land Transfer Tax in Ontario. The reader can acquire further information regarding the qualification for first time homebuyer rebate at http://www.fin.gov.on.ca/en/bulletins/ltt/1_2008.html.

If the property is located in Toronto, the purchaser(s) pay the Ontario Land Transfer Tax and the Municipal Land Transfer Tax (MLTT). Along with this, the purchaser(s) are required to pay an MLTT admin fee for the processing of the Land Transfer Tax.

What is the Statement of Adjustments?

If the firm is retained to represent the buyer(s) Mississauga Real Estate Lawyer will obtain the statement of adjustments from the vendors lawyer. This is the balance sheet of the transaction that will set out all debits and credits for the purchasers and vendors e.g. the deposit, an adjustment for taxes, common expenses and any other items that may be required to be adjusted on closing. The balance due to the seller(s) as per the statement is required from the purchaser(s) on the closing date in order to complete the transaction.

What is a survey?

An up to date land survey is recommended for your purchase. If you are planning to make changes to any buildings or structures on the property, and up-to-date survey is even more important. A survey shows the location of improvements fences, and property boundaries. An up to date survey would disclose current encroachment, if any, and assist in determining infractions of zoning by-laws. Without and up-to-date survey, the purchaser(s) may not be able to determine whether any intended changes to buildings and other structures on the property will be permitted. Mississauga Real Estate Lawyer will review with the purchaser(s) the advantages of obtaining an up to date survey. Purchaser(s) will have to arrange for an update to date survey at their own expense, or alternatively purchase title insurance.

If you need any assistance the firm offers Real Estate Lawyer services across Toronto, Milton, Mississauga, Vaughan, Newmarket, and all across Ontario. Call a Real Estate Lawyer today for your consultation at 905- 230-4529.

DISCLAIMER: The content provided is for Informational purposes only. Nothing shall be construed on this web page as providing legal advice nor does the content form any kind of Solicitor-Client relationship. Readers should verify the source of the information and obtain legal advice before relying or acting upon it



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