Purchasing a resale residence

Closing cheques and appointment

About two days prior to closing you will be contacted for an appointment to sign the closing documents and, at the time of making the appointment, you will be advised about the cheques required for closing. Cheques required for closing must be by Certified Cheque or by Bank Draft payable to RAJ KATYAL, IN TRUST and be received in this office at least 24 hours prior to closing date so that we can be prepared to complete your purchase on the scheduled date of closing. When we meet to sign the closing documents, all adjustment s and expenses will be completely reviewed with you. At the time of our meeting to sign the closing documents, please be prepared to show two pieces of proper personal identification.

Mortgage financing

It is your responsibility to arrange any mortgage financing which you might require to complete the purchase. Once you arrange the mortgage, it will be your responsibility to:
(a) satisfy any special requirements by the lender prior to mortgage money being provided for the closing (e.g. proof of income, proof of cash down, payment of other debt obligations, if required by the mortgage lender, in order to avoid financing problems on closing day);
(b) It is usual for real estate lawyers in the Ontario to also act for whatever mortgage lender you choose. If we are not, please inform my office immediately. If I am also acting for the mortgage lender, advise the mortgage lender to send mortgage instructions as soon as possible so that documentation and mortgage funding can be completed prior to your closing date.

Insurance

All financial institutions require my office to provide them with Property Insurance prior to releasing mortgage funds. Therefore, it is your responsibility to arrange fire insurance and have your insurance company fax an insurance binder to my office at least 24 hours prior to closing. The policy must be for full replacement cost.

If however, you are purchasing a condominium, the insurance binder will be included in the Status Certificate. The condominium insurance does not include the contents of your unit. If you want to have your contents insured it is your decision, but is not required by my office.

Moving time

Since the completion of most purchases occurs in the afternoon on the day of closing (after which time the key is released), it is suggested that (if you are moving on the day of closing) you arrange your movers so that their arrival at the property being purchased will occur in the early evening of the day of closing in order to avoid unnecessary moving costs, if you are paying movers on an hourly basis.

Utilities

Should there be any separate utility meters on the property being purchased, although the appropriate departments will be advised to read the meters on closing so that there will be no interruption of services so that the purchaser will only be billed after the closing date with the vendor being billed for the period prior to the closing date, hydro prefers that purchasers and vendors make direct arrangements for meter readings by contacting Hydro. It is also advisable that purchasers should also contact any applicable utility department to arrange to have utility accounts set up in the purchaser’s name to avoid any misunderstandings.

For your convenience, some telephone numbers for Toronto area are:

Should there be any separate utility meters on the property it is your responsibility to contact the respective departments to advise that you will be the owner of the property and open an account.

Title insurance

I will be obtaining insurance on your behalf as it is required by most financial institutions. Title Insurance will protect your ownership interest in the property and may provide protection against fraud, forgery, liens, title restrictions, unmarketability of title, including but not limited to errors, omissions contained in public record, judgements, survey problems, such as encroachments, such as encroachments onto neighboring properties, lack of access, easement, municipal and zoning by-law infractions, work orders, contravention of subdivision agreements, tax arrears and utility arrears which may form a lien on the property.

Names for registration

Please contact myself as soon as possible, to inform me of how you wish the ownership of the property to be registered. I will require the full spelling and dates of birth for all individuals to be registered on title.

If more than one individual is purchasing you will need to confirm whether you want to take ownership of the property as “joint tenants” or as “tenants in common”. Where title is held as “joint tenants” and one of the owners dies, the surviving joint tenant automatically becomes the owner of the property no matter what a Last Will and Testament might state. This is the manner of holding title most commonly used by spouses. However, where title is held as “tenants in common” and one of the owners dies, the deceased owner’s interest passes to a beneficiary according to any Last Will and Testament made by the deceased.

Wills

As you are purchasing real estate, you should consider preparing wills at this time. It is normal for people to delay in preparing a will; however, the extra cost of a will is small in comparison to the additional costs that can be incurred in administrating an estate where there is no will. For further information as to instructions and cost, please contact me.

Mortgage

If you mortgage exceeds 75% of your purchase price, it must be insured by the Canada Mortgage and Housing Corporation (CMHC). This is not life or disability insurance. This is insurance for the financial institution in case the borrower does not pay the mortgage. The CMHC insurance fee is a percentage, which increases with the percentage of your financing. For more information please log onto www.cmhc-schl.gc.ca/en/co/moloin/index.cfm.

Title Insurance: What you need to know
Land Transfer Tax (LTT)
Land Transfer Tax Calculator