If you are Buying?

Buying a home can be a tough decision. Nanda & Associate Lawyers is happy to assist you at every step. Our legal experts with extensive real estate experience provide customized and cost-effective solutions for all your needs.

There are a few things every purchaser should keep in mind when buying a home:

Pre-Purchase Preparation

Plan a Budget- It is often a good idea to start with asking yourself a simple question: Whether you can afford buying a home? You may consider your lifestyle preferences while deciding on the size of the property and its cost.

Mortgage Financing- Looking for a property also means you are looking for the right kind of mortgage to finance that property. There are different ways of arranging a mortgage. You can either arrange for a mortgage through a lending institution such as a bank or seek financial assistance from your friends and relatives. In either case it is the purchaser’s responsibility to meet the requirements of the lender by providing all the necessary documents including proofs of income, identification, credit score reports, pre-written approval and a power of attorney, if required.

For purchasers arranging a mortgage through friends and relatives, it is advised that a written agreement be prepared by the lawyer’s office stating all the necessary details and the lender should seek independent legal advice.

In case of more than one owner on the title of ownership to a property, it is advised that a written partnership agreement be prepared by the lawyer stating the terms and conditions of the partnership especially the distribution of proceeds if the property is sold in the future.

Buying Insurance- A home buyer should not forget to buy an insurance that protects his property and the ownership to the property (referred to as “Title”).

Tile Insurance protects the condition of ownership of the property. It has become mandatory for lawyers in Ontario to provide their clients with advantages of obtaining title insurance. The policy provides protection against defects in the title, errors in land survey, pre-existing liens, easements, breach of zoning by-laws and other title related issues. Obtaining title insurance is not expensive, it provides a “No Fault” certification with no deductibles and the coverage increases to match inflation over time. For more details click here

Purchasing a fire insurance policy is an important step towards protecting your home and its contents against damages from fire. The purchaser should ensure that the policy should be effective from the date of the closing and must mention the lender as the beneficiary. The purchaser must arrange for a binder letter from the insurance agent to be sent to the lawyer to be able to close the deal. For more information, please click here

At the time of Purchase

Appointment at the Lawyer’s Office– Once you have secured a mortgage deal and purchased insurance the next step is to attend at the lawyer’s office to review and sign the closing documents. You must bring two pieces of identification and other necessary documents as specified by the lawyer. You must also bring certified cheques or bank drafts for any payments for the closing day.
In case the property will be a principal residence for a married couple, both the spouses must attend the lawyer’s office even if only one of them decides to take title of the ownership of the property.
Closing Adjustments– Closing adjustment refers to any payments made by the seller of the property which benefit the purchaser after the closing date. For example, prepaid property tax may have been paid by the previous owner for the entire year. The purchaser should arrange for certified cheques or bank drafts for the closing adjustment costs.

Settling Utilities– Before the deal is closed, the purchaser should ensure that all the previous utility bills have been paid. He or she must notify the different departments of the intended purchase and inform the concerned departments of the change in the billing information after the closing.
TARION New Home Warranty program– TARION is a private corporation that protects the rights of the new home buyers and regulates builders. As a new home buyer it is advised that you go through the various warranty programs and purchase the warranty that best suits your need. Prior to the closing of the deal an inspection is arranged between the purchaser and the builder where any defects are brought to the attention of TARION and the builder in writing. A Certificate of Completion and Possession is completed and the builder sends it to TARION.

After the Closing

The Keys- After the release of mortgage by the lender and the exchange of documents between the lawyers, the deal is closed and the keys are released. Processing of all the legal and paper work takes time and if you plan to move in on the same day as the closing it is advised that you do so after 6 p.m. It is best to move the day after closing to avoid any extra moving costs in case of a delayed closing.
Moving into a condominium may require special arrangements before moving. Make sure you contact the management in advance.