+ Do I need a lawyer if I am buying or selling a home in Ontario?

Yes, for any transaction involving a sale or purchase in Ontario, you will require a lawyer licensed to practice law in Ontario.

+ I am doing a refinance, and my bank said I do not need a lawyer, why is that?

There are several reasons why this could be. For starters, your bank may have their own internal lawyer. But be careful of this scenario. It is likely that their fees will come off the top of your mortgage advance, yet you never meet with this lawyer for any advice, and if you have a legal issue, the bank will require you to see, and pay for, your own lawyer as well as theirs.

Additionally, it may be that the bank is simply doing your refinance under the existing mortgage registered on title and therefore no new Land Registry document will need to be filed, therefore no lawyer is in fact required.

+ How much are fees and disbursements? What is the difference in fees and disbursements?

We like to explain to clients that ‘fees’ are the amount that we pay ourselves and disbursements are things that we pay for you, on your behalf such as Land Transfer tax, searching your title, registering your deed, registering your mortgage, arranging for a tax certificate, arranging for title insurance, etc.

Until we know more about your specific transaction, we would not be able to specifically advise on these costs (as the transaction dictates the costs), but we are always happy to take a few minutes and go through it with you on the phone.

+ How much is Land Transfer Tax in Ontario?

Here is a link to calculate Land Transfer Tax and, if applicable (Toronto Land Transfer Tax). Please feel free to contact us to ensure this is an accurate calculation. Your real estate agent or mortgage broker should also be able to assist.

+ What will be expected of me if I am going to retain you to help me in a real estate transaction?

Your responsibilities will include (but may not be limited to):

· Notifying your utilities companies and pre-authorized payments of the change of ownership and having the meters read;

· Ensuring we have the appropriate financial information we need to do our job (we will advise you of what is required based on your transaction);

· Communicating with us promptly;

· Providing us with the required Identification as per your mortgage or Land Registry Office requirements;

· Meeting with us in person at our office a couple of days before the closing (to be scheduled);

+ When will I know how much money I need to bring in for my purchase OR how much am I getting back from my sale/refinance?

The finances are always the point clients want to know as how much money is required or how much you are getting back is very important! However, this information comes from a variety of sources, such as your lender, the real estate agent (calculation of commission payable), both lawyer’s in calculation of the adjustments on closing and the completion of our searches and work on the file. As such, we usually don’t know the final figures until the week of closing.

+ What is title insurance?

Generally, if you are obtaining a mortgage, we will have to purchase a policy of title insurance on your behalf as this is required to protect both you and the lender.

Taken from Stewart Title’s website www.stewart.ca, title insurance covers:

· someone else owns an interest in your title

· existing liens against the title

· violations of municipal zoning by-laws

· encroachments onto an adjoining property (other than fences and boundary walls)

· setback violations

· realty tax arrears

· outstanding municipal utility charges, provided such charges form a lien on title

· existing work orders

· lack of legal access to the property

· unmarketability of the land due to adverse matters that would have been revealed by an up-to-date survey / RPR / Building Location Certificate

· fraud, forgery and false impersonation to the extent they affect the validity of title

+ When will I get my key on closing?

The actual closing day is set by your Agreement of Purchase and Sale. The Land Registry Office is open from 8:30 am to 5:00 pm and the closing can occur anytime between those hours, but not usually later than that. We always try to close your deal as early as possible so you can have your key to move in, but factors such as when your mortgage sends out funds to us, both lawyers’ availability and the timing of the month (how busy banks and offices are), can all play a role in how long this takes.

We always promise to keep you informed during the closing day – you are our priority on your big day!

+ What are some hidden costs I should be aware of?

Adjustments: If the seller has pre-paid expenses, the purchaser will have to reimburse for those on closing. Property taxes, fuel oil fill up, condo fees are some examples of line items that get adjusted on closing.

Land Transfer Tax: Make sure you determine the correct fee for this. Ontario has its own Land Transfer tax but if you are buying in Toronto, there is also an additional tax for the city. Some people qualify for a rebate. Ask your agent or lawyer to give you the correct amount of LTT payable.

Connection fees: There are often deposits required to set up new utilities accounts and to read meters on closing. Double check the cost of these to make sure you have enough $ set aside.

Home inspection: This is an extremely important step in buying a home. Fees vary but you could avoid some large expenses in the long run by arming yourself up front about issues with the home.

Penalties: If you are selling, your mortgage lender may charge a pre-payment penalty and a discharge fee. Contact your lender before deciding to sell, so you know what the penalties will be for paying out your mortgage.

Moving fees: Make sure to speak to your lawyer to understand when your key to your new home will be available before booking your moving truck. Movers can be expensive and you don’t want to have much wasted time on closing if it can be avoided.

Professional Fees: Generally, you will require a realtor, a mortgage broker/agent and a lawyer as well as other professionals such as home inspectors, and insurance agents. Confirm all the fees and out of pocket expenses for each, and be aware the Realtor’s commission is subject to HST in addition (many clients are surprised by this!).

+ Who qualifies for the First Time Home Buyer rebate for Land Transfer Tax?

First Time Home Buyers only ever qualify for the rebate in Ontario once. We often hear this information being misrepresented. To qualify you must meet these criteria:

· If you have never owned a property anywhere in the world or had a beneficial interest in a home anywhere in the world;

· and have never had a spouse who owned a property during the course of your marriage;

· and intend to occupy the property as a principal residence within 9 months of the closing.

If you qualify, we will prepare the necessary rebate forms for you to be exempted for the portion of Land Transfer Tax on the closing day.

+ What is a modular home?

In Simcoe County, we have several ‘land lease’ parks where the home is owned by the owner but the land it sits on is leased. Generally these types of homes are not moveable like RV’s but they also do not necessarily have basements either, hence their terminology ‘modular’. Sometimes they are referred to as pre-fabricated homes.

These types of homes do not have a Deed of Land because you do not own the land. Rather, you obtain a Bill of Sale, just like when you buy a car or a boat. You also have to enter into a lease agreement with the Park for the lease of the land the Modular home sits on. These types of rentals have special provisions under the Residential Tenancies Act and not all lawyers are experienced in the documentation required to transfer this type of ownership.

+ What is bridge financing?

Bridge Financing is a financial vehicle in which owners who are selling their home (and have a firm agreement to sell their existing home) can leverage some equity to borrow a loan to purchase a new home ahead of time (allowing themselves extra time to move, and not have to close both the sale and purchase on the same day). We find this can be a smart decision to reduce stress for the transactions and permit extra time to get settled in your new home before your existing home sells. The bridge loan is then repaid in a few weeks’ time when your house sells.