PURCHASE SALE REFINANCE NOTARY SERVICES
Real Estate Law
ADJUSTMENTS BETWEEN BUYER AND VENDOR (ON A RESALE HOME TRANSACTION):
On a resale home, adjustments are done for items already paid by the vendor, which benefit the buyer after the closing date. These items are pro-rated, and a credit is given to the vendor as an adjustment on closing. These items can include prepaid realty taxes and prepaid condominium fees, and others.
ADJUSTMENTS BETWEEN PURCHASER AND BUILDER (NEW CONSTRUCTION):
If you are buying a new home from builder, be prepared to pay extra funds as there are several items to be adjusted, which can include Tarion New Home Warranty Enrolment Fee, municipally required fencing, costs for hydro and water meter installation, tree planting, driveway paving, grading deposit, educational lot levy, levies and development charges and many other items.
CONTACT THE UTILITY COMPANIES: Although we notify by fax the utility companies, Hydro, Gas and Water change of ownership of subject property. But, it primarily your responsibility to notify the utility companies and set up your account for Hydro, Gas and Water. If you do not set up your accounts, it may result in disconnection in services.
Purchases of residences (that are NOT condominiums) CANNOT be completed without a FIRE INSURANCE BINDER being provided to the purchaser's lawyer. Make sure your insurance agent faxes to the lawyer the fire insurance binder for GUARANTEED REPLACEMENT COST prior to closing if you are buying a residence that is not a condominium. You have to direct your insurance company to add the name and address of the Lender as Loss Payee. Ask you Insurance Company to Fax the Binder to our Fax No. 416 743 6566 or email to: admin@phatralaw.ca.
If the residence is a condominium, although the condominium corporation will have insurance for the entire project, it is necessary for the unit owner to arrange insurance for the contents of the unit purchased and for public liability. Make sure that such insurance is placed before closing to be effective on the closing date and that such insurance covers any deductible that might become payable to the condominium corporation for a claim under its insurance. In some cases, some mortgage lenders and builders require such condominium unit insurance for contents and liability to be in place prior to finalizing the occupancy closing.
If you are moving into a condominium requiring the use of an elevator, contact the management office well in advance of the closing date to reserve an elevator.
USING A POWER OF ATTORNEY:
IF the purchaser cannot be present to sign the closing documents and closing the transaction under Power of Attorney, be advised that Mortgage lenders require a copy of the power of attorney document to be used (if any) for a mortgage AS mortgage lenders MUST pre-approve any power of attorney form being used.
FIRE AND CONTENTS INSURANCE
About TWO DAYS prior to closing or earlier, as soon as possible you will be contacted for an appointment to sign the closing documents in our law office (we have evening and Saturday hours) and at the time of making the appointment, you will be advised about the amount required for closing. Closing Funds must be CERTIFIED CHEQUE or by BANK DRAFT payable to "PHATRA LAW OFFICE, IN TRUST" and be received in this law office at least ONE DAY BEFORE CLOSING DATE so that we can SMOOTHLY complete your purchase on the scheduled date of closing.
Please note that if you are married and property is being registered in one spouse's name only, and if the home being purchased will be a principal residence, both spouses must attend to sign documents for closing.NOTE: WHEN YOU COME TO SIGN THE CLOSING DOCUMENTS, PLEASE BE PREPARED TO SHOW THE RECEPTIONIST YOUR PERSONAL PHOTO IDENTIFICATION (UNEXPIRED PASSPORT, DRIVER'S LICENCE AND SOCIAL INSURANCE CARD, CREDIT CARD OF MAJOR CANADIAN BANKS) WHICH WILL BE PHOTOCOPIED FOR THE FILE RECORDS. WE DO NOT ACCEPT HEALTH CARD AS AN ID.
The purchaser is to arrange any mortgage financing which might be required to complete the purchase. When the mortgage is arranged, the purchaser is to make sure to satisfy any special requirements by the lender (e.g. - proof of cash down payment, proof of income) in order to avoid last minute financing problems on closing day.
The purchaser should confirm with the bank/mortgage lender that mortgage instructions have been sent to our law office.
Arranging the mortgage in time helps your transaction close smoothly and in time.
CANADA MORTGAGE AND HOUSING CORPORATION MORTGAGES:
IF the cash down payment is less than 20% of the purchase price, the mortgage lender (on closing) will deduct certain CMHC charges PLUS 8% Provincial Sales Tax on CMHC charged. The Lender may also deduct appraisal fee, property tax holdback, and interest adjustment if any).
PURCHASE CLOSINGS
Before we start working with you, we need complete copy of Agreement of Purchase and Sale. All buyers need to provide us 2 Valid IDs (UNEXPIRED PASSPORT, DRIVER'S LICENCE AND SOCIAL INSURANCE CARD, CREDIT CARD OF MAJOR CANADIAN BANKS) and execute Retainer Letter. You need to make sure to provide us copy of Agreement, 2 IDs and execute Retainer Letter a few days before the Title Search Date.
ARRANGE MORTGAGE:
Real Estate Lawyers in the Business
CLOSING CHEQUES AND APPOINTMENT
SALE
Phatra Law Office provide Legal Services in the field of Residential Purchase, Sale and Refinance transactions. Phatra Law Office can assist buyers and sellers in Contract preparation, negotiation and title search, other due diligence matters and closings.
If You Are Selling A Residential Property
Before we start working with you, we need complete copy of Agreement of Purchase and Sale. All sellers need to provide us 2 Valid IDs (UNEXPIRED PASSPORT, DRIVER'S LICENCE AND SOCIAL INSURANCE CARD, CREDIT CARD OF MAJOR CANADIAN BANKS) and execute Retainer Letter. You need to make sure to provide us copy of Agreement, 2 IDs and execute Retainer Letter a few days before the Title Search Date.
Documents Required to Finalize Processing of File for Closing
The following items must be provided to the Law Office by fax (416 743 6566) or by email to admin@phatralaw.ca or by delivering photocopies to our office as soon as possible so that we can prepare the file for closing in advance of the closing date:
- Copy of Transfer/Deed (which is the ownership document to be found in your legal documents which you would have received when you purchased the property);
- Details of any existing mortgages, including:
- Name of mortgage company
- Address and telephone number
- Mortgage account reference number (if applicable)
- Current year's realty tax bills (including any existing property tax bill and any future bill received prior to closing) as well as details of payments being made by you prior to closing date. (We also require total amount of property taxes paid for the prior year.)
- Copy of survey (if property is not a condominium);
- Any contracts affecting your property including and not limited Hot Water Tanker, Air conditioner, Furnace, Humidifier.
You have to provide us one key to the main door when you come at our office to sign the documents and leave rest of the keys at you house at a visible location when you vacate your house. We also require your forwarding address and future telephone number after closing your sale transaction.
CONTACT THE UTILITY COMPANIES & OTHER SERVICE PROVIDERS: Although we notify by fax the utility companies, Hydro, Gas and Water change of ownership of subject property. But, it is primarily your responsibility to notify the utility companies and pay your final bills for Hydro, Gas and Water. If you do not notify the utility companies, it may keep charging you. It is very important to Transfer the contract for Hot Water Tanker, Air conditioner, Furnace, Humidifier in the name of the buyers, if it is part of your Agreement of Purchase and Sale. In the alternative, it may keep charging you even after the closing is complete.
(a) Payment to You of Proceeds After Closing and Spousal Consent
Please be aware that, typically, the net sale proceeds are available by certified cheque payable to the registered owners at about 5:30 pm on the day of closing your sale or the next working day. Should a purchaser's deposit, which is being held by the realtor (in trust) until the sale closes, be greater than the realtor's commission (plus G.S.T.), any excess funds from such deposit will be refunded to you directly from the realtor after the transaction is completed. Be aware that in cases where a power of attorney is being used to complete a sale, the net sale proceeds will still be payable to the registered owner(s) and not to the person holding the power of attorney.
If two or more persons are selling a property, we shall require you (prior to closing) to confirm in writing how the net sale proceeds are to be payable if you wish separate cheques to each owner/vendor; otherwise, you will be provided with one certified cheque for the entire net sale proceeds at about 5:30 p.m. on the day of closing or next working day, payable to all registered owners. Should you prefer separate cheques to each owner, you should consider obtaining independent legal advice before directing our law office in writing as to how such funds are to be divided.
If ownership of the sold property is in only one spouse's name but the home has been a matrimonial home, the other spouse (who is not a registered owner) must attend in our office prior to closing in order to sign a consent for the sale completion.
(b) Cancellation of Your Existing Fire Insurance and Vacancy Over 30 Days
Please do NOT make any arrangements to cancel your fire insurance policy until after you have confirmed with this office that your sale has, in fact, been completed. Also, be aware that if the property you are selling will be vacant for more than 30 days before the closing date (or any extended closing date), you must advise the fire insurance company to cover the increased risk due to any vacancy prior to closing.
(c) Appointment in the Law Office Prior to Closing
You will be contacted about TWO DAYS prior to closing for an appointment to sign the closing documents in the law office (evening and Saturday hours are available). Please be prepared to leave at least one key for the sold property with this office at that time. AT THE TIME OF OUR MEETING TO SIGN THE CLOSING DOCUMENTS, PLEASE BE PREPARED (UPON ARRIVAL IN OUR OFFICE) TO SHOW THE RECEPTIONIST YOUR PERSONAL PHOTO IDENTIFICATION WHICH WILL BE PHOTOCOPIED FOR OUR FILE RECORDS. If you are coming to the office for an appointment to sign in the evening or on a Saturday and, if you have difficulty speaking English, you must bring an interpreter with you. If you are relying upon our office to provide an interpreter for normal daytime office hours, please confirm (at the time the closing appointment is arranged) that our office interpreter will be available; otherwise, you should arrange for your own interpreter (perhaps your real estate agent) to attend with you in our law office for the closing appointment.
(d) If Power of Attorney is being Used for Closing
If you are completing the sale by using a power of attorney authorizing another person to sign closing documents for you, all net sale proceeds will still be payable to ONLY the registered owner(s). Any power of attorney being used for closing, must be arranged well before closing.
If the Seller is a Non-Resident of Canada
If at the time of closing, you will not be a Canadian resident, please contact our office to discuss the sale processing for non-residents.
Utilities, Cable T.V. and Moving Checklist
YOU MUST NOTIFY (prior to closing) all applicable departments concerned to confirm arrangements for making final meter readings. Any such meters will be read on the date for completing the sale so that you will only be responsible for payment of utility accounts up to the date of closing.
WARNING REGARDING CANCELLATION OF AUTO PAY OR PRE- AUTHORIZED CHEQUING PLANS OR POST-DATED CHEQUES: It is your responsibility as a vendor to make certain that any such pre-authorized chequing plans or post-dated cheques are stopped at your bank for any payments falling due after the closing date for items such as property tax payments or common area expenses.