REAL ESTATE LAW. DO THE MATH!
DO THE MATH BEFORE YOU PURCHASE YOUR HOME
As a real estate lawyer I am surprised at how many people will attend at my office with no clue about any of the numbers involved in their transaction.
You don’t have to be a mathematics whiz but, its very important that you have crunched some of the basic numbers to ensure you have enough money.
This avoids us having to spend two hours simply going through the math.
HOW MUCH MONEY WILL I NEED FOR MY HOME CLOSING
Consider some of the following tips when you are purchasing your home and or have put in a final offer.
LAND TRANSFER TAX
How much will your land transfer tax be? There are free handy on-line calculators. Simply insert your purchase price and the Land Transfer Tax will be provided. You don’t want to be in a situation where you didn’t budget for a $20,000 Land Transfer Tax fee and find yourself short close to the day of closing.
DEPOSIT
How much money did you put down for the home? Generally, real estate lawyers during the closing process will create a document entitled Statement of Adjustments. This is prepared by the seller’s lawyer.
If I am acting for the purchaser I will have my client review the Statement of Adjustments. Essentially, the Statement of Adjustments takes the purchase price and deducts the value of the deposit provided. It also, identifies how much property tax the sellers have paid and how much is remaining.
The Statement of Adjustments will identify a final number that is to be provided to the seller’s lawyers on closing. Is important for clients to have a ball park figure. So there are no surprises.
TITLE INSURANCE
Unfortunately, real estate lawyers don’t always know the cost of title insurance until it is purchased. In some cases, the title insurance being purchased may not only be on behalf of the client but also the financial lending institution. Title Insurance is also contingent on the purchase price and the size of the property. For example, title insurance is cheaper is for a condominium versus a home.
HOME INSURANCE
Factor into your cost home insurance. Also, you will be required to provide a copy of the valid home insurance that is satisfactory for your lender. Remember home insurance is not the same as title insurance.
It is the clients responsibility to obtain home insurance the real estate lawyers responsibility to obtain title insurance.
BROKER AND OR BANK FEES
If you are using a private broker they may have their own fee structure. A prudent broker will typically have some type of signed agreement with the client. Ensure you factor this fee into your final numbers.
If it’s a bank, often they will include or deduct their own processing fees for forwarding mortgage funds. Make sure you check with either your broker or bank to determine how much will be forwarded to the lawyer on the day of closing!
If you have any other questions about the real estate closing process feel free to give me a call.
IS THERE A REAL ESTATE LAWYER NEAR ME?
If you are buying a home or selling contact our office to speak with a real estate lawyer in Burlington.
I provide legal services in Burlington, Milton, Hamilton and Oakville.
My address is 901 Guelph Line, Burlington.
You can also call or text at 416-505-4901 OR call Toll Free: 1 (800) 939-9211
anytime for a free consultation