PURCHASER RESOURCE CENTRE
Select a topic from the list below:
What Documentation & Information Your Lawyer Needs
What are Your Closing Costs?
Closing Day ... Keys on Closing and Moving Time
Signing Closing Documentation Prior to Closing
Purchase Price - Closing Adjustments
Insurance - Title Insurance and Fire Insurance
Funding the Purchase of your Property
If Power of Attorney is Being Used
WHAT DOCUMENTATION & INFORMATION YOUR LAWYER NEEDS
Please provide our office with the following:
- Copy of your Agreement of Purchase and Sale and all Waivers - usually a copy is faxed to our office by your Real Estate Agent;
- The full legal names of those persons who are to appear on title as well as their dates of birth;
- Whether the owners are taking the property as "Joint Tenants" or "Joint 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 and no probate tax is payable - 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 - probate tax is applicable);
- You are required to forward our law firm contact information to your mortgage broker or lender who will in turn fax solicitor instructions to our office;
- We require your current contact information;
- If you are purchasing a Property that is NOT a condominium, we will require the fire insurance binder for the property; and
- Closing funds - your certified cheque represents the funds needed in addition to your mortgage and is to be made payable to Parnes Rothman in trust. You will be required to present your certified cheque when you attend our office to sign all closing documentation.
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WHAT ARE YOUR CLOSING COSTS
CLOSING COST QUOTATION SYSTEM™
Parnes Rothman is pleased to provide its clients and local community with its FREE Closing Cost Quotation System™ for Residential Real Estate transactions. We have made every effort to provide the most accurate quote possible based on the information you provide. Our Closing Cost Quotation System™ is unique in that it calculates all hidden expenditures, fees, disbursements and taxes that you will likely encounter for your transaction.
Follow the directions and provide as much detail as possible. Your FREE online
legal quote will be generated instantly and your Closing Cost Quotation Certificate will be emailed to you which will include ALL legal fees, Real Estate commission, Title Insurance, Land Transfer Tax (including Toronto Land Transfer Tax), GST, Registration Fees and more!
GET YOUR FREE QUOTE TODAY!
Pay your legal fees via Credit Card, Debit or Cheque!
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Closing Day...Keys on Closing and Moving Time
On Closing Day....
The mortgage lender will forward the mortgage funds to our ParnesRothman Trust account usually before 12:00 pm. This money is combined with your certified closing funds which you are to present to our firm when you sign all closing documentation. The closing funds are then certified by our firm and forwarded by courier along with all closing documentation to the Vendor's lawyer. The Vendor's lawyer will forward their closing documentation, along with the keys to the Property to our firm.
The lawyers will hold all funds and keys in escrow until the Purchasers are registered in the Land Registry Office as the new owners of the Property. Once registered, the our office will release the keys to the Purchasers and the transaction is complete - usually in the late afternoon before 5:00 pm. The Purchasers now own the Property and are free to move into the premises.
If you are moving on the Closing Date, we suggest that you arrange for your movers to arrive late in the afternoon to avoid any unnecessary moving costs.
If you are moving into a condominium and require the use of an elevator, be sure to contact the management office well in advance of the Closing Date to reserve an elevator.
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Signing Closing Documentation Prior to Closing
You must attend our office to sign all closing documentation prior to the closing of your transaction. Our office will contact you one (1) week prior to the closing date to schedule an appointment. Our office hours are Monday - Friday 9am - 5pm (evening and weekends by appointment only).
PLEASE NOTE: our office will only be contacting you if additional information is required to close your transaction (other than scheduling the above noted appointment). If you have any questions feel free to contact us anytime! There is no additional charge!
All the registered owners (and spouses if a matrimonial home) are required to attend our office. The process takes about 30 minutes to review and sign all documentation.
Please be sure to bring your certified cheque, representing your closing funds, at the time you attend our office. Your closing funds will be immediately deposited into our trust account. Please make your certified cheque payable to ParnesRothman in Trust.
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Purchase Price - Closing Adjustments
An Agreement of Purchase and Sale states that the balance of the purchase price on the closing date will be paid by cash or by certified cheque subject to the usual adjustments.
When you visit our office to sign all closing documentation, you will be required to bring in a Certified Cheque representing all adjustments to the purchase price.
RESALE HOMES
Adjustments include items that have been prepaid beyond the closing date by the Seller that benefit the Purchaser beyond the Closing Date. A credit will be given to the Seller as an adjustment on closing.
For example, if your closing date is June 21st, the Seller has likely already prepaid the property taxes until June 31st. The Purchaser is responsible for all property expenditures from June 21st onward and therefore the Seller is to receive a credit for the overpaid taxes from June 21st to June 31st.
NEW HOMES
If you have purchased a new home from a builder, the closing adjustments are greater than on a resale home since adjustments (when buying from a builder) can include hydro and water meter installation costs, Ontario New Home Warranty Enrolment Fee and many other items not normally adjusted when one buys resale property.
The adjustments included in a new built home are usually found in the Schedules attached to the Agreement of Purchase and sale that was entered into with the builder.
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Insurance
Title Insurance
Title Insurance is insurance against loss from defects in title to real property and from the invalidity or unenforceability of mortgage liens. It is meant to protect an owner's or lender's financial interest in real property against loss due to title defects,liens or other matters. It will defend against a lawsuit attacking the title as it is insured, or reimburse the insured for the actual monetary loss incurred, up to the dollar amount of insurance provided by the policy.
EXAMPLE: You find out two years after purchasing your home that you have been a victim of identity fraud. Someone has just stolen your identity and sold your home without you even knowing it! Now a third party purchaser has a legitimate claim to your property. If you had purchased title insurance prior to purchasing your home, the policy will protect your investment.
Click here for more information.
Fire Insurance - Not Including Condominiums
All Properties (other than condominiums) are required to have Fire Insurance. A Fire Insurance Binder MUST be provided to our office prior to the Closing Date. Please have your insurance agent forward the fire insurance binder to our office which should indicate that you are covered for Guaranteed Replacement Cost prior to the Closing Date.
Fire Insurance - Condominiums
If the Property you have purchased is a condominium you are not required to purchase fire insurance as the condominium corporation will have insurance for the entire building. You will be required to arrange insurance coverage for the contents of your unit. Be sure that the insurance is in placed before closing to be effective on the closing date and that such insurance covers any deductible that might become payable to the condominium corporation for a claim under its insurance.
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Funding the Purchase of your Property
Please immediately contact your mortgage broker or lender and provide them with our law firm's contact information. Your lender will then forward solicitors instructions to our office prior to the Closing Date with all your transaction details so we can finalize your mortgage financing.
If your down payment is less than 20% of the purchase price, your mortgage must be insured. Please confirm with your mortgage broker or lender as any additional costs that will be deducted from the net mortgage proceeds. Such deductions may include the mortgage insurance premium, appraisal fees, penalties, taxes, holdbacks etc.
You will be required to arrange any additional financing required to fund the remaining closing funds to complete the transaction. Such funds must be certified and are to be presented to our firm when you attend our office to sign the closing documentation prior to the Closing Date.
It is also the purchasers responsibility to comply with the lender's requirements (ie: meeting debt obligations, proof of income etc.) prior to the closing date to avoid financing problems on the Closing day.
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Changing over Utilities, Taxes, Hydro etc.
UTILITIES
Our office will write to the utility companies to request a final reading of your meters be done on the closing date. However, we strongly advise that prior to closing, you follow up with the utility companies to confirm. You will only be responsible for payment of utility accounts payments from the Closing Date onward.
TAXES
Our office will write to the town to request that you be listed as the new home owner on the closing date. However, we strongly advise that prior to closing, you follow up with the town to confirm. You will only be responsible for payments from the Closing Date onward. The purchase is responsible for the day of closing onward. Please note that some municipalities will charge an administrative fee to change over the ownership.
HYDRO
Our office will write to the hydro companies to request a final reading of your meters be done on the closing date. However, we strongly advise that prior to closing, you follow up with the utility companies to confirm. You will only be responsible for payment of utility accounts payments from the Closing Date onward.
CABLE TELEVISION
Please contact your cable company and advise them of your move.
TELEPHONE & INTERNET SERVICE
Please contact your telephone and internet service providers and advise them of your move and to arrange for the disconnecting and transfer of service.
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If Power of Attorney is being Used
If a Power of Attorney is to be used for your transaction, please be sure to notify our office well in advance of the closing date. Our office can draft the Power of Attorney for a nominal fee (we will also provide a witness free of charge).
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If you have any questions that are not addressed above, please contact our office for a free consultation.
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QUICK REFERENCE
ESTATE PLANNING RESOURCES
REAL ESTATE RESOURCES
LINK TO OUR WEBSITE
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MARKET UPDATE
TORONTO - Friday, July 4, 2008 -- TREB Members reported 8,600
sales in June, TREB President Maureen O’Neill announced today.
“Sales were down 18 per cent from the 2007 total of 10,451, which was the
best performance ever for that month,” noted the president. “Nevertheless, the 8,600 figure is the fifth best June on record, and indicative of an active, healthy market.”
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