registrations must be completed.By the time all of those things happen
on the closing date (so that the key can be released to the purchaser), it will
usually be late in the afternoon and often be about 5 p.m. on the date of
closing.THEREFORE if you are moving on the closing date or arranging for
work to be done on your purchased residence, we suggest that you consider
arranging your movers to arrive at the property late in the afternoon on the
closing date in order to avoid unnecessary moving costs if you are paying
movers on an hourly basis.
If you are moving into a condominium requiring the use of an elevator, contact
the management office well in advance of the closing date to reserve an
elevator. It is best to complete the purchase at least one day
before moving since, if you try to schedule your move on the same date as the
purchase completion, you will likely not receive a key until late in the day
(about 5 p.m.) on the closing date.
completed without a FIRE INSURANCE BINDER being provided to the
purchaser’s lawyer prior to closing the purchase. Make sure your
insurance agent faxes to the lawyer the fire insurance binder for GUARANTEED
REPLACEMENT COST prior to closing if you are buying a residence
that is not a condominium.
If the residence is a condominium, although the condominium corporation will
have insurance for the entire project, it is necessary for the unit owner to
arrange insurance for the contents of the unit purchased and for public
liability. Make sure that such insurance is 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. In some cases, some mortgage lenders and builders require such
condominium unit insurance for contents and liability to be in place prior
to finalizing the occupancy closing.
complete the accounting for the closing funds after the seller’s lawyer
provides the statement for closing adjustments and any mortgage lender confirms
the net mortgage funds to be provided for closing) you will be contacted for an
appointment to sign the closing documents in the law office (we have evening
and Saturday hours) 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 “S. SHUB, IN TRUST”
and be received in this law office at least 24 HOURS PRIOR TO THE CLOSING DATE
so that we can be prepared to complete your purchase on the scheduled date of
closing. Cash amounts over $500.00 will not be accepted
since we do not have security for cash transactions. When meeting
to sign the closing documents, all closing adjustments and expenses will be
completely reviewed with you.
Please note that, even if a property is being registered in one spouse’s name,
if you are married and if the home being purchased will be a principal
residence, both spouses must usually attend to sign documents for closing.
NOTE: AT THE TIME OF THIS MEETING TO SIGN THE
CLOSING DOCUMENTS, PLEASE BE PREPARED (UPON ARRIVAL IN THE LAW OFFICE) TO SHOW
THE RECEPTIONIST YOUR PERSONAL PHOTO IDENTIFICATION (UNEXPIRED PASSPORT,
DRIVER’S LICENCE AND SOCIAL INSURANCE CARD) WHICH WILL BE PHOTOCOPIED FOR THE
FILE RECORDS PRIOR TO FINALIZING EACH AND EVERY TRANSACTION
PROCESSED. IF ONE PERSON (WHO MUST SIGN ON CLOSING) WILL NOT BE
AVAILABLE, YOU MUST ARRANGE A POWER OF ATTORNEY WELL BEFORE CLOSING.
closing ADJUSTMENTS to the purchase price.Your Agreement of
Purchase and Sale states that the balance of the purchase price on the closing
date will be paid by certified cheque subject to the usual adjustments.On
a resale home, adjustments include items already prepaid beyond the
closing date by the seller that benefit the purchaser after the closing date,
and a credit is given to the seller as an adjustment on closing.
Some examples of closing adjustments on a resale home are for prepaid
realty taxes, prepaid condominium fees (if the property purchased is a
condominium), and fuel oil (if the property has an oil furnace). On
a new home purchased from a builder, 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.
your cash down payment is less than 20% of the purchase price), the mortgage
lender (on closing) will deduct certain costs from the mortgage advance.
PLEASE CONFIRM with the mortgage lender as to what costs will be
deducted. (For Example: 8% provincial sales tax on the mortgage insurance
premium, appraisal fee, property tax holdback or interest adjustment, if any).
If a power of attorney is being used for closing the transaction, written
pre-approval for the use of the power of attorney must be obtained from the
mortgage lender.
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:
mortgage lender, etc.) in order to avoid financing problems on closing day;
sent to our office so that we can finalize processing your mortgage financing
for closing.
In order to complete the purchase, if you intend to borrow any funds (on an
informal basis) from a relative or friend, you should encourage such
arrangements to be in writing in order to avoid any future misunderstandings
and the funds should be protected by registering a security against the
property being purchased. Any such lender is encouraged to obtain
independent legal advice when making such a loan.
If a partner to the transaction is providing a greater portion of the cash down
payment (than the other partner), whether or not the partner providing such
funds will be registered on title, it is highly recommended that you provide
written instructions for our office to prepare a partnership agreement
(typically $50.00) and that each partner to the transaction obtain independent
legal advice.
Please advise as to how you wish to take title to the property. Please
note that you may not use initials of given names in Land Registry
documents. The birthdate of each person who will be taking title to the
property is required.
Please note that, even if a property is being registered in one spouse’s name,
if you are married and if the home being purchased will be a principal
residence, both spouses must usually attend to sign documents for closing.
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.
If more than one person will be shown on title as owner (not being a married
couple) and if only one person is providing all, or a substantial portion, of
the funds needed for the purchase, you may wish to consider entering into a
special written agreement to avoid any future misunderstanding with respect to
your shares of ownership, your respective obligations regarding monthly
carrying costs and distribution of net proceeds upon an eventual resale of the
property. Should you wish such an agreement to be prepared for
signatures when you sign final closing documents, please inform this office
(our fee for such a typical agreement is $50.00). It is also
advisable for each purchaser to consider obtaining independent legal advice
before entering into such an agreement.
We recommend to all purchasers a title insurance policy which will provide
title protection against title defects, survey issues, liens, work orders,
frauds, forgery, etc. as provided by the PLATINUM TITLE INSURANCE POLICY
issued by FIRST CANADIAN TITLE INSURANCE COMPANY. The title policy
ordered will be sent to you after closing the purchase and such policy will
exist for your entire period of ownership of your residence, no matter how many
years you own the property. Should you not want title insurance to be ordered,
you must inform our office in writing at least one week before closing.
If you have bought a newly constructed residence, you should attend at the
property prior to closing to inspect and prepare a list of matters requiring
the attention of the builder.The inspection appointment time must be arranged
by you with the builder’s representative. At that time, you will complete the
Certificate of Completion and Possession for delivery by the builder to the
TARION Warranty Program. All items outstanding must be noted.
The Warranty Certificate issued should be received by you and a copy should be
provided to our office prior to closing.
As a purchaser of a newly constructed home, you have various rights pursuant to
the Warranty Program and, in particular, there are provisions by which you may
compel the completion or rectification of prescribed items of
construction. To familiarize yourself with your rights as well as
the procedures and times within which they must be enforced, refer to
www.tarion.com or contact 5150 Yonge St., concourse level, Toronto, Ontario,
M2N 6L8 (corner of Yonge Street and Park Home) Tel. 1-800-668-0124.
BE AWARE that most hydro departments (or meter check services) no longer accept
a lawyer’s letter for purchaser information and for arranging to read an
electrical meter on the closing day so that a seller is billed up to closing
day with purchaser billed after closing day. As a purchaser, you must make such
arrangements.Although our office will be notifying some departments to read any
meters, YOU MUST contact any such departments concerned
in order to confirm arrangements for making final meter readings. Any such
meters will be read on the date for completing the purchase so that you will
only be responsible for payment of utility accounts after the date of
closing. For most telephone numbers (in the area around Toronto)
for water, hydro and gas, click on “UTILITIES” on
our home page of this website.
If you have cable television, please advise the cable company of your
move. You must also arrange for telephone service to be connected.
Should the water supply for the property you are purchasing be from a
well (rather than from a city water supply system) it will be your
responsibility to obtain a water sample kit from your local heath department
(416-235-5952); to attend on the property you are buying and get a water
sample; to attend on the local health department and confirm the water is free
from contamination.
For a moving checklist, click on MOVING CHECK LIST
on our home page of this website.
This is a warning about the types of rules that affect many condominiums.
Should you be concerned about what rules are imposed by the Condominium
Corporation in which your purchased unit is located, we suggest you immediately
speak with the property management office.
Some types of rules relate to the following kinds of items:
- carpeting on various types of floors to reduce sound transmission; or no hardwood floors (unless management
consent is obtained in writing) - barbequing on balconies
- no satellite dish (use of common area cable T.V. system is required)
- no parking of commercial or recreational vehicles
- use of elevators for moving sometimes have restrictive hours, require reservations and/or security
IF YOU ARE PURCHASING A CONDOMINIUM WHERE AN ELEVATOR
must be used for your move or a LOADING AREA, contact the management
office as soon as possible to book an elevator for moving. - no office, business or commercial uses within condominium units
- pet restrictions (including sometimes maximum weight of a pet)
- types and colour of window coverings, (white or off-white) as can be seen from exterior of building
- plantings and other uses of exterior patios
- unit owner’s liability for damaged exterior doors, including garage doors and/or added items such as central air, fireplaces, etc.
- noise generated by musical instruments
- restrictions on short term rentals and
other tenancy requirements if you intend to rent the unit.
If you do not comply with a specific rule affecting your condominium, the
Corporation has the right to get a court order directing compliance and
ordering payment of legal costs by the unit owner. If you intend to rent your
unit, insert a clause in the tenancy agreement that the tenant will comply with
all rules and by-laws of the Condominium Corporation.
The Condominium Act of Ontario states that no changes may be made to the common
areas, including exclusive use common areas, without consent of the Board of
Directors and without first obtaining the consent of at least a majority of the
unit owners. Accordingly, if you notice that there have been any changes
made to the common areas of your specific unit, such as installation of a
central air conditioning unit, the construction of a deck, garden shed or
fence, or the enclosure of a balcony, please make direct contact with the
management of the condominium prior to closing to verify whether any such
changes have been consented to or were originally installed by the builder when
the property was originally built. Similarly, if you intend to make any
exterior changes to the common areas, you must first obtain the consent of the
Board of Directors (in writing) and fulfil the requirements of the Condominium
Act as to the consent of the other unit owners. Should you wish to arrange for
Condominium management to inspect the unit to confirm that a seller or a prior
owner has made no unauthorized changes, please contact management directly.
If it appears to you that the seller has made internal changes to the unit or
common area changes, we recommend that you ask management whether or not such
changes were approved by management. Should a purchaser wish to
make changes, written approval must be obtained from management.
estate, you should consider preparing a will at this time. It is
normal for people to delay in preparing a will; however, the extra cost of
$75.00 per person (if a couple) or $88.00 (if single) is small in comparison to
the additional costs that can be incurred in administering an estate where
there is no will. For further information as to instructions and
cost, please refer to WILLS on our website’s home page
or contact our office at 416-222-1882.
