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Real Estate and Mortgages
One of the most important purchases you will ever make is the purchase
of your home.
We have the expertise to ensure that your purchase is completed promptly,
thoroughly and cost effectively. We are committed to serving your needs
and protecting your interests.
If you are considering the purchase of real estate, there are certain
things you should be aware of:
- The CONTRACT, when signed by the parties, is a LEGALLY BINDING AGREEMENT
for residential real estate transactions in British Columbia. If you
are unsure of anything, seek professional help. Read carefully before
signing. All terms of the agreement should be in writing as the contract
expressly excludes any verbal agreements. Likewise, anything in the
contract which is not applicable to the sale should be DELETED by striking
it out.
- Any deposit paid directly to a Vendor is unsecured. It would therefore
be advisable that any sizable deposit be held in trust with an agent,
lawyer, or notary.
- It is the Purchaser's responsibility to check out the ZONING, the
FITNESS of the building, any use RESTRICTIONS, ENCROACHMENTS on the
property, and any other charge staying on title. Failure to do so could
make the Purchaser legally bound to accept the conditions as they exist.
These conditions must also be satisfactory to any lender. A Vendor allowing
a Purchaser to assume a mortgage could still be liable for mortgage
payments unless the mortgage company agrees to release the Vendor's
covenant.
- On COMPLETION, it is advisable that the following procedure be followed:
- The Purchaser's lawyer/notary should prepare all the necessary
documents and forward them to the Vendor for signature. The Vendor
should execute and return the documentation in trust to the Purchaser's
lawyer/notary prior to completion.
- The amount due on completion including all adjustments should
be paid in trust to the Purchaser's lawyer/notary before the completion
date and the Purchaser should sign all necessary document.
- Once documents are signed and the necessary funds are in trust,
the Purchaser's lawyer/notary should coordinate registration in
the appropriate Land Title Office of the documents as well as any
mortgage documentation.
- After confirmation of filing, the Purchaser's lawyer/notary shall
release the sales proceeds. The Vendor is entitled to these on the
completion date. Consequently, it is strongly recommended that all
necessary documents be signed and monies put in trust in advance
of such date.
- The adjustment date usually coincides with the possession date.
- Although there may be others, the following are the costs applicable
in most circumstances:
VENDOR'S COSTS
Lawyer or notary's fee and expenses for
attending to sale on Vendor's behalf
discharging any encumbrances
Land Title fees
Costs of clearing title, including
discharge fees charged by encumbrance holders
prepayment penalties
Real estate commission (if applicable)
PURCHASER'S COSTS
Lawyer's or notary's fees and expenses for
advising with respect to purchase
searching and reviewing title
search and Land Title registration fees
drafting documentation
Property Purchase Tax
Costs of mortgage including:
search and Land Title registration fees
survey certificate (if required)
appraisal (if required)
mortgage company's fees
mortgage company's lawyer/notary
PST (if applicable)
GST (if applicable)
- The POSSESSION date should be AFTER the completion date. The Vendor
should not let the purchaser in until the funds due on completion have
been paid.
- FIRE INSURANCE is not applicable unless there are insurable buildings
on the property being purchased. The Purchaser's insurance should be
effective at the earlier of the completion date or the date the completion
proceeds are paid into trust. The Vendor should maintain insurance in
effect until the Vendor receives the sale proceeds.
- Lists all ITEMS which are to be included in the purchase and which
are excluded.
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