Having Deeble & Persaud Law acting on your behalf with respect to buying or selling a home is as simple as providing your real estate agent with our contact information. Your real estate agent will fax the Agreement of Purchase and Sale to our offices and we will promptly open a file for you and begin obtaining the necessary information to complete the transaction. In the case of re-financing, simply provide your lender or mortgage broker with our contact information and the lender will fax the mortgage documents to our offices so that we may begin working on your file. Regardless of the type of transaction, whether buying, selling, re-financing or transferring ownership, we will handle all enquiries and prepare all necessary documents.
We will meet with you shortly before your closing date to review the entire transaction, sign the documents and arrange for the handling of funds. At our meeting, we will require each person to bring two pieces of identification, one of which must be government issued photo identification such as a driver's licence or passport. Unfortunately, a health card is not accceptable identification.
Please do not hesitate to contact our offices at any time should you have any questions or concerns at any stage in your transaction.
BUYING A HOME
I. Obtaining a Mortgage
As part of our legal fee we will prepare all mortgage document for registration on behalf of you and the lender. If you negotiate different mortgage terms prior to closing, please remember to advise us so that we can make the necessary changes to your file.
II. Fire Insurance
As part of our legal fee we will obtain an "Insurance Binder" from your insurance broker, which confirms that the property purchased will be insured effective the closing date and states the name and address of the insured lender.
You must provide us with the legal name or names you want on the deed (please note that initials cannot be used) as well as the dates of birth for each. There are several options as to how title to the property may be recorded. Where more than one person's name is to be recorded on title, choices include "Joint Tenancy" and "Tenancy-in-Common". If you choose joint tenancy, in the event of the death of one of the joint tenants, the survivor(s) will own the entire property by right of survivorship. For a married or partnered couple, this is the most convenient way to deal with a house when one of the spouses or partners dies. If you choose tenancy-in-common, then upon the death of one co-owner, that person's interest will pass to his or her beneficiary under his or her will or in accordance with intestacy legislation if there is no will.
IV. Title Insurance
The majority of residential purchases in Ontario are title insured. Title insurance is an insurance policy that protects you, the homeowner, against many forms of title fraud and other issues related to the title of your home such as property tax arrears. Title insurance is beneficial in that it provides coverage against losses suffered as a result of title defects and it may be obtained in lieu of costly surveys.
Title insurance is available for a low premium that is paid only once. The title insurance coverage is valid for the entire time you own your home. In addition, some title insurers extend coverage, at no extra charge, to heirs who receive your home in the event of your death.
Should you choose not to obtain title insurance our office will need to obtain certain searches and survey, which are often more costly than the one-time title insurance premium. Where our offices do not obtain title insurance on a purchase transaction, we will provide an Opinion on Title, which confirms that you have good and marketable title subject to certain qualifications.
V. Land Transfer Tax
Land Transfer Tax ("LTT") is a one-time provincial tax charged to anyone who buys a property in Ontario. The LTT is calculated as a percentage of the purchase price of the property and is payable by the purchaser at the time the purchase transaction closes.
Current LTT rates are as follows:
- 0.5% of the value of the purchase price up to and including $55,000;
- 1% of the value of the purchase price which exceeds $55,000 up to and including $250,000; and
- 1.5% of the value of the purchase price which exceeds $250,000; and
- 2% of the amount by which the value of the purchase price exceeds $400,000 (for property that contains at least one and not more than two single family residences).
VI. Land Transfer Tax Refund for First-Time Home Buyers
First-time homebuyers may be eligible for a refund of all or part of the Ontario LTT with a maximum refund in the amount of $2,000.
The buyer must occupy the home as their principal residence no later than nine months after the date of the conveyance or disposition.
The buyer cannot have previously owned a home, or had any ownership interest in a home, anywhere in the world, at any time.
If the buyer has a spouse, the spouse cannot have owned a home, or had any ownership interest in a home anywhere in the world while he or she was the buyer's spouse. If this is the case, no refund is available to either spouse.
VII. Tarion New Home Warranty
The Tarion Warranty Corporation is responsible for administering the Ontario New Home Warranties Plan Act (the "Act"), which governs those who build and sell new homes in Ontario, and outlines the warranty coverage that builders and vendors are required to provide to new home and condominium buyers.
Coverage under the Act includes deposit protection, protection against defects in work and materials, unauthorized substitutions, delayed closings or delayed occupancies without proper notice and for condominiums, coverage also includes the common areas of the building.
VIII. Utility Notifications
As part of your purchase transaction, our office will notify local utility companies and the City of Ottawa Revenue Branch of the change in ownership. However, in order to ensure that the utilities and property tax have been transferred to you as the new owner, we advise that you also contact the utility companies and city revenue department.
SELLING A HOME
I. Discharging a Mortgage/Secured Line of Credit
As part of our legal fee we will request that your lender provide a Discharge Statement confirming the full amount owing on any outstanding mortgage/secured line of credit as at the closing date. At closing, we will provide the lender with a cheque for the full amount payable from the proceeds of your sale. The lender will then provide our offices with a registered discharge which we will provide to the buyer's lawyer to confirm that the mortgage/secured line of credit registered on title has been discharged.
II. Real Estate Commission
As part of our legal fee we will provide the real estate brokerage with a cheque for the total real estate commission payable from the sale proceeds.
III. Statement of Adjustments
As part of our legal fee we will prepare what is called a Statement of Adjustments which sets out the purchase price, deposit paid by the buyer, property taxes paid for the year, fuel costs, if any, and the condominium fee paid for the month, if applicable. Our offices will ensure that the buyer reimburses you for any overpayment property taxes, fuel costs, or condominium fees.
IV. Fire Insurance
We recommend that you do not cancel your insurance on the sale property until the day following the closing date to ensure that the property is in fact insured up until the time that the home is transferred to the buyer.
V. Utility Notifications
As part of your sale transaction, our office will notify local utility companies and the City of Ottawa Revenue Branch of the change in ownership. However, in order to ensure that the utilities and property tax have been transferred, we advise that you also contact the utility companies and city revenue department.
We will require at least one set of all keys necessary to enter the premises, as well as, any remote garage door openers or fobs provided for in the Agreement of Purchase and Sale, to deliver to the buyer on the closing.