You have just entered into an Agreement of Purchase and Sale to buy a new home or to sell your present home. The following is a brief summary of the steps that will be taken by your Lawyer to complete the transaction.

PURCHASE

Searches:

Your Lawyer will receive a copy of the Agreement of Purchase and Sale from either you or your Real Estate Agent and will conduct the following searches:

 1. Title

 2. Water

 3. Hydro account status

 4. Consumers Gas account status (if applicable)

 5. Zoning compliance

 6. Hydro work orders

 7. Writs Seizure and Sale

 8. Tax Search (realty taxes)

 For rural properties, the following searches will be conducted:

 9. Septic

10. Well water

11. Unregistered Hydro easements

SURVEY

Your Lawyer will also require a building location survey of the property by which he/she can determine whether or not one is available prior to entering into the Agreement of Purchase and Sale. The cost for the preparation of a new survey is approximately $750 - $1000.

MORTGAGE

If you are obtaining a mortgage or mortgages in order to finance your purchase, your Lawyer will obtain instructions from the mortgagee and will prepare all mortgage documentation.

INSURANCE

You should attend to obtaining insurance for the property, to be effective on the date of closing. It will be necessary for your Lawyer to obtain a binder from the insurance company confirming the details of coverage and the mortgagees interest.

ADJUSTMENTS

Prior to closing your Lawyer will receive a Statement of Adjustment from the Vendor's Solicitor. This statement provides for adjustments made to the purchase price, i.e. deposit paid, tax adjustments, cost of a full tank of oil (if applicable). There may be other adjustments.

CLOSING

Prior to closing your Lawyer will ask that you come in and sign the documents required and to provide a certified cheque for the balance due on closing.

On the date of closing your Lawyer or their Agent will attend at the Registry Office. A sub-search of the property will be conducted in order to ascertain that no documents have been registered or judgements filed, affecting the property, subsequent to the initial title search done. Certified cheques will be exchanged for an executed deed and other documents as well as keys for the property.

LAND TRANSFER TAX

Land Transfer Tax is paid to the Treasurer of Ontario on every real estate purchase. Where the purchase price is less than $250,000 land transfer tax is calculated as one half of a percent on the first $55,000 and one percent of the balance. A quick calculation is to multiply the entire amount by one percent and subtract $275.

For example, on a purchase price of $110,000 :

$110,000 x .01 =$1100

$1100 - $275 = $825

FEES & DISBURSEMENTS

Fees:

Fees vary depending on the fee structure of the solicitor as well as the complexity of the transaction.

SALE

Your Lawyer will receive a copy of the Agreement of Purchase and Sale. Your Lawyer will deal with requisitions raised by the Purchaser's solicitor, as well as prepare the Statement of Adjustments and direction for funds, specifying the manner in which the funds due on closing are to be made payable. Should there be a mortgage or mortgages to be discharged, your Lawyer will request pay-out statements from the mortgagee. Should the existing mortgage be assumed by the Purchaser, then an assumption statement would be requested.

Your Lawyer will receive all documentation received by the Purchaser's solicitor and attend with you upon the signing thereof.

Upon closing your Lawyer will attend at the Registry Office in order to meet the Purchaser's solicitor and exchange keys and documents in return for certified cheque(s).

After closing, will attend to the registration of discharge(s) of mortgage and confirm same with the purchaser's solicitor.

Subsequent to the closing of your transaction, either purchase or sale, your Lawyer will provide a reporting letter detailing the particulars of the transaction and providing copies of relevant documentation.