Land Transfer Tax is payable on purchasing a property in Ontario. This tax is referred to as the Provincial Land Transfer Tax.

For additional information it’s always a good idea to consult with a real estate lawyer.

Land Transfer Tax is payable by the purchaser.

This material is reproduced directly from the Ontario Ministry of Finance.

Provincial Land Transfer Tax is calculated as follows:

• 0.5% up to and including $55,000
• 1% above $55,000 up to and including $250,000
• 1.5% above $250,000
• 2% above $400,000 where the land contains one or two single family residences.

Purchasers in the City of Toronto are often surprised to find that they will be paying double when it comes to the Land Transfer Tax.

Purchasers will be responsible for the Provincial Land Transfer Tax but also the Municipal Land Transfer Tax that is calculated as follows:

• 5% on the amount of up to $55,000
• 0% for purchase price between $55,000 - $400,000 and then
• 0% for purchase over $400,000

I AM BUYING A HOME FOR THE FIRST TIME.

If you are buying a home for the first time the following may apply:

A refund on Land Transfer Tax for Ontario of up to $2,000 and $3,725 for Toronto.

In order to qualify a new home buyer must meet the following criteria. This information is reproduced directly from the Ontario Ministry of Finance:

• must be at least 18 years old
• must occupy the home as your principal residence within nine months of the date of transfer
• cannot have ever owned an eligible home, or an interest in an eligible home, anywhere in the world, and
• if you entered into an agreement of purchase and sale before December 14, 2007, the eligible home must be newly constructed and you must be eligible for  the Tarion New Home Warranty.

If you have a spouse, your spouse cannot have owned an eligible home, or an interest in an eligible home, anywhere in the world while being your spouse.

You must apply for a refund within 18 months after the date of the transfer.

If you have additional questions about the sale or purchase of your home contact our office to consult with one of our Real Estate Lawyers in Burlington.

We are located at 901 Guelph Line, Burlington.

416-505-4901

As a real estate lawyer practicing in Burlington I often get asked what is Title Insurance?

Title Insurance is not mandatory. However, a real estate lawyer will strongly recommend it. More importantly, it is likely that a real estate lawyer will not close the transaction until Title Insurance is purchased.

Title Insurance provides peace of mind for the purchaser and the lawyer.

The Financial Services of Ontario that regulates Insurance has published a handy guide to Title Insurance. According to the brochure Title Insurance Covers the following:

• Unknown title defects.
• Existing liens against property's title.
• Encroachment issues.
• Title fraud.
• Errors in surveys and public records.

A very common question from prospective homebuyers and sellers is what are the disbursements for a real estate closing? Some real estate lawyers when quoting the price of a residential real estate home purchase or sale will only provide their legal fees.

At times, this might be confusing for a prospective client. As a result, it’s a good idea to understand what disbursements are.

Feel free to browse my other blog entry entitled, Working with a lawyer where I provide additional information about disbursements. In sum, disbursements are the expenses and costs related to the transaction.

more info

This will really depend on the value of your property. Additional factors could also be considered such as the location and type of home. Most real estate lawyers have their preferred insurer they use and will provide legal advice about the insurance that they recommend.

Title Insurance can vary between $150 to 350 but it can be higher as well. Title Insurance is added as a disbursement to the overall bill that clients receive from their real estate lawyer. Also, this is why the cost of Title Insurance is not always available as readily when first speaking with the real estate lawyer.

Real Estate Lawyers can charge based on a flat fee or based on a percentage of the value of the property. At my law office we charge on a flat fee basis. This makes it easier for clients to understand how much the closing costs will be.

Purchase of a residential home with one mortgage starting from: $799

Sale of a residential home with discharge of one mortgage starting from: $699

The numbers above do not include disbursements. If you would like to know more about legal disbursements for a residential real estate closing then please visit my other links below.

Real Estate Law Disbursements

WHAT WILL THE TOTAL COSTS BE FOR A REAL ESTATE CLOSING?

You may also considering reviewing my initial real estate law home page to assist in understanding closing costs.

http://rehankhalil.com/services/real-estate-lawyer/

In sum, the total costs for a residential real estate closing can really vary based on legal disbursements. If you have a sale or purchase of a home coming up please contact our real estate law office we service Burlington, Oakville, Milton and Hamilton.

You can call or text 416-505-4901

Whether you are selling or buying on your own or through a realtor the need for a real estate lawyer is imperative.

Websites such as Property Guys and Com Free have started to gain in popularity as many folks seem to feel exhausted with the whole process of buying and selling a home. These websites eliminate the need for a realtor and can save buyers and sellers a tremendous amount of money on fees. Despite, the popularity and allure of selling your own home realtors have not noticed any notable dent in their business based on these sites.

more info

I WANT TO BUY AN ESTATE HOME

On a Saturday morning in the fall I received a call from a Burlington Realtor asking about how to word an offer on behalf of her clients the buyers, purchasing a home that would be an estate sale.

Since, I am such a super lawyer I emailed her back with some thoughts. There are a few things to consider when thinking about real estate and wills and estates and probate.

If you are the buyer you should ensure that the offer is structured as in a way to protect your client. The seller will likely have to go through the probate process. Probate is the official court process wherein, an individual or trust company will be appointed to manage the estate. The actual term is Estate Trustee or Executor but to make it easy I just refer to them as the Manager.

In some situations, the home might have already been put up for sale, with the seller still looking to be appointed as Manager. The official document needed is the Certificate of Appointment of Estate Trustee with a Will or Certificate of Appointment of Estate Trustee without a Will.

HOW DO I STRUCTURE THE AGREEMENT OF PURCHASE AND SALE WHEN ITS AN ESTATE?

In this situation it might be practical for a flexible closing date that allows for an extension as mutually agreed upon. In this type of transaction it is the buyer who assumes more risk. A real estate lawyer or realtor will advise about some of the obstacles. For example, the buyer might be looking to sell their home around the same time they close on the estate home.

The second more concerning scenario is the buyers lack of knowledge about the estate. What if there is an estate dispute? What if another family member of the estate contests the appointment? Estate Litigation can last for years. The last thing a buyer would want no matter how amazing the property is to be locked into a transaction waiting on the outcome of a protracted court battle. Also, what if the court finds in favour of another family member. Think of the consequences this could have?

AGREEMENT OF PURCHASE AND SALE AND PROBATE CLAUSES

As a result, it’s a good idea to have a probate clause in the Agreement of Purchase and Sale.  This not only forces the seller to acknowledge they have the Last Will and Testament but also something to ensure they will start the court process expeditiously.

Samples of these clauses can be found here: Probate Clauses

AGREEMENT OF PURCHASE AND SALE

The Agreement of Purchase and Sale is the legally binding contract that parties in Ontario use when buying or selling their home.

As a real estate lawyer I often receive calls from people prior to or during the negotiation and or finalizing phase. While I am happy to chat with prospective clients I always advise that they speak with their realtor. The reason being, your realtor is there to help you, he or she is sitting at the bargaining table with you and is aware of your immediate needs. Whereas, as lawyers we tend to just get the final documents.

The Agreement of Purchase and Sale has standard terms that pretty much apply to all real estate transactions in Ontario with subtle differences.

Even though, it seems to be a daunting document. It’s a good idea to review it. After all, this is the most important purchase or sale of your life. The Agreement of Purchase and Sale is also referred to as the Form100.

Over the next series of blog posts. I will attempt to breakdown the various clauses and provisions of the Agreement.

Page 1 of the Agreement and Purchase and Sale

If you freak out at the possibility of looking at a contract because of all the legal jargon, a purchaser and or seller should at minimum review page 1 to put them at ease. This first page consists of:

• Buyer: Who is buying the property?
• Seller: Who is selling the property?
• Real Property: The description of the property.
• Purchase Price: What is the agreed upon price.
• Deposit: Buyer will provide a deposit within 24 hours that will be held in trust
• Schedule A: This can be used for a variety of purposes to attach special conditions or statements. For example, the buyer may stipulate that the offer is contingent on financing. Both parties may agree to extend the date for closing on notice.
• Irrevocability: This is an offer and it will expire on….
• Notices: This clause identifies and appoints the parties respective realtors/brokerages and whether or not the parties are using the same brokerage for the purposes of giving any official notices.

For many real estate clients this provides peace of mind knowing they can contact me.

PAGE 2 OF THE AGREEMENT AND PURCHASE OF SALE

Most folks looking for a real estate lawyer near them will often ask, what is an agreement of purchase and sale? I blogged about this in my previous post entitled, what is an agreement of purchase and sale and I focused on page one of the agreement.

In this post we will talk about page 2.

CHATTELS INCLUDED

A chattel is movable personal property. For example, a chair.

FIXTURES EXCLUDED

A fixture is something that is attached, affixed “stuck on”. For example, the island in the kitchen.

Now, over the years courts have had to step in to determine the difference between the two. However, that’s not a discussion I will be having here.

When drafting the Agreement of Purchase and Sale parties, should clearly identify what will be included and what will be excluded. It is commonly held, that chattels that are movable property will be taken by the seller. However, also keep in mind that when the purchaser came to view the property, perhaps they noticed nice new kitchen appliances. Perhaps, the buyer just assumes they will come with the home. Unbeknownst, to the buyer that the seller recently purchased the kitchen appliances with the intention to take them.

Parties should be cautious, especially the buyer when dealing with the hustle and bustle of open houses, quick in and outs from various homes over weeks and sometimes months.

RENTAL ITEMS: This stipulates there is equipment that is rented and that the buyer will assume the rental contract. For example, a water heater.

HST Is the Harmonized Sales Tax payable. Generally, on the resale of a home it will not. It will be payable on the purchase of a new home. However, a claim can be made for a rebate. One should also keep in mind that

If tax is payable its important to clarify the purchase price.

TITLE SEARCH:

The buyer’s real estate lawyer will perform a Title Search to ensure that the property does not have any title defects, existing liens, existing work orders and that there will not be any issue obtaining insurance. You can click here to learn more about what is a title search?

Generally, the buyers lawyer should be provided with enough time to ensure that title is free and or to report any title defects. This time period is referred to as the Requisition Date. It’s important to ensure that if the Agreement of Purchase and Sale has conditions such, as conditional on financing that there is sufficient time.

In the event there is no Requisition Date, then according to Ontario law, there will be a 30 day period from the date of the contract.

FUTURE USE:

In the event the buyer is thinking about doing something different with the property. For example, turning it into an office. This clause protects the seller, basically that they have no issue with whatever it is the buyer is planning on doing with the property. However, it is important that the buyers lawyer look into whether or not the property can be used for that purpose. For example, if the buyer is thinking of turning the home into an office do local zoning laws permit it? In that situation, there should be conditional clauses in the agreement of purchase and sale.

TITLE:

The seller has the obligation to provide the property to the buyer with good title. In other free from any types of liens, claims or mortgages on the property. For example, often people looking to sell their home, get a sudden call from their real estate lawyer advising them that there is a something on title. At times, this could have been a court order from a lawsuit they may have been involved in. The seller’s then must move quickly to remove this from title.

However, certain exemptions exist such as municipality zoning and or by-laws. Also, for the purposes of utility companies.

CLOSING ARRANGEMENTS:

This is a clause pertaining to the lawyers use of electronic document transferring. Lawyers are bound to hold all items from one another in trust until the electronic document transference has been adequately satisfied. In other words, the sellers lawyer on receiving funds from the buyers lawyer will hold the funds in trust. Until, such time as the electronic transference has been completed.

DOCUMENTS AND DISCHARGE

This provision states, that the seller does not have to provide anything else they don’t have. Also, that the sellers lawyer will undertake (promise) to discharge (pay off) any existing mortgages on the property and provide proof of same. Thus, permitting the buyers lawyer to register the new mortgage after the closing within a reasonable period of time.

In Ontario, the Agreement of Purchase and Sale is used when buying or selling property.

Paragraph 23 of deals with the clause entitled UFFI.

Urea formaldehyde foam insulation also known as UFFI is a standard clause, wherein the seller promises that UFFI was not used in the construction of the home either prior to their possession or after and to the best of their knowledge.

According to the Health Canada website during the 1970’s UFFI was used in the construction of homes for the purposes of insulation. In 1980 UFFI was prohibited as per the Hazardous Products Act.

The concern was that the formaldehyde released harmful gasses. This resulted in many homes that did have UFFI to suffer substantial property losses.

As a result, today UFFI is not used. However, their may be older homes unbeknown to even the seller that could still have urea formaldehyde insulation. Therefore, paragraph 23 is a standard clause, that requires the seller to warrant or in other words promise that UFFI was not used. This also protects the home buyer.

If you have any further questions contact my office to speak with a Real Estate Lawyer in Burlington. 

Also, feel free to review my other articles about the Agreement of Purchase and Sale:

Part 1: Agreement of Purchase and Sale 

Part 2: Agreement of Purchase and Sale 

A real estate closing is most common reason why people will end up visiting a lawyer. At my real estate law office I can assist you with the purchase or sale of a new or used home.

I have set up my practice in Burlington, Halton Region because this is where I live and work as well. Therefore, I am very familiar with the real estate market here. Along with that, I have established contacts with realtors that are local as well.

Burlington, Oakville and Milton are some of the fastest growing communities and the real estate market is thriving as well.

I can also assist you with the purchase or sale of a new or used condominium.

While many real estate lawyers often pass clients off to their law clerks. Rest assured, that at my law office you will be dealing with me directly. I am accessible via text message and email during business hours.

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