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HOME BUYING MADE SIMPLER
At Casey Rodgers Chisholm Penny we have lawyers whose sole focus and area
of practice is residential real estate. It is our responsibility to ensure
that your upcoming purchase is worry free.
We will review your closing costs with you at the time we are retained.
The full costs of your transaction will be explained so that there will
be no surprises on the closing day.
Read on for more information or jump to a particular section
PURCHASE and SALE AGREEMENT
Most agreements are in standard form, drafted
by real estate agents. The agreement forms the basis upon which you agree
to purchase the property.
It is essential that you adhere to the terms of
the agreement and all time periods specified therein. Should you anticipate
any difficulties with these time limits, you should contact your agent
or lawyer as soon as possible.
SEARCHING THE TITLE
We will have the title searched at the Registry
of Deeds to ensure that the Vendor has a clear title to the property and
that there are no liens or encumbrances against the property or defects
in the chain of title from previous owners.
LOCATION CERTIFICATE
The search of title does not determine that the
house, driveway, garage, fences ect. Are on your property. A location
certificate is required to confirm that these things are within your lot
boundaries. If you are obtaining a mortgage, your lender will usually
require a copy of a location certificate prior to advancing funds. The
previous owner may have a location certificate which will satisfy the
requirements of your mortgage company. However, it is important to note
that if the location certificate is not prepared for you, you will not
have any recourse against the surveyor should it be incorrect.
WATER TESTS
If the property is serviced by a well, it is necessary
hat you have the water quality tested to ensure that it is suitable for
drinking. In addition to quality tests, you may wish to have a well drilling
company check the quantity of water supplied to the well to ensure that
it meets your daily requirements.
FIRE INSURANCE
It is in your best interest to ensure that the
property is adequately protected against fire and other perils. Your mortgage
company will require that you obtain insurance coverage and the mortgage
company must be named under the loss payable clause in the insurance contract.
TITLE TO THE PROPERTY
The most common means of taking title for married
couples is a JOINT TENANTS. As joint tenants, should one spouse die, the
title to the property passes to the survivor immediately upon death, without
estate complications.
Title may also be taken in one name alone or as
a TENENTS IN COMMON. As tenants in common each person may deal with her
or his interest in the property as she or he wishes. Should one party
die, her or his interest in the land is dealt with under the directions
of the deceased’s will.
DEED TRANSFER TAX
At the time you acquire the property you will
be responsible to pay a deed transfer tax to the municipality. The amount
of this tax in the Halifax Regional Municipality is 1.5% of the purchase
price.
LAWYER’S CERTIFICATE OF TITLE or TITLE
INSURANCE?
A real estate lawyer’s certificate includes
a full investigation of the title as will as addressed the appropriate
off title inquiries to ensure no one else will have a claim on your home
and property once you complete the purchase. By reducing the unknown’s,
this process reduces the risks involved in such a major investment, allowing
you to take possession of your home and property with great peace of mind.
Lawyers sometimes employ title insurance to protect
purchasers from the possible consequences of known and identified title
complications, when correcting the problem would otherwise involve extraordinary
costs. Title insurance provides a different kind of protection than the
protection traditionally provided with a full investigation of title.
Remember an insured title from a title insurance
company is not the same as the “good and marketable title”
certified to your by your real estate lawyer and, in fact, an insured
title may not be acceptable to a future purchaser of your property.
Consult with your real estate lawyer to see if
title insurance is appropriate for you.
HST
The harmonized sales tax is payable on the purchase
of new construction at the rate of 15 %. Existing used residential properties
are exempt from HST on the purchase price.
CLOSING
On the day of closing, you should plan to do a
final inspection of the property to ensure that the property is in the
same condition as when you placed the offer.
As well you will need to attend at our office
to review and sign your mortgage, pay the balance of the purchase price,
obtain keys and review the adjustments to the purchase price.
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