PURCHASE
You do not need a home inspection but it is strongly recommended to get a home inspection done before buying a property. Ideally, it should be a pre-condition before the Agreement of Sale and purchase becomes binding. The inspection report will reflect if the property meets the building and zoning laws. The inspection may not reflect hidden defects since it is a visual inspection of the property, such as plumbing, foundation, electrical wiring, ventilation, and roof conditions, to name a few items. A home inspection cost may range from $300 to $600, depending on the property’s shape and size.
You need a real estate lawyer to buy a house in Toronto. A real estate sale or purchase transaction cannot be completed without hiring a real estate lawyer. Once you have decided to buy, you need to make an offer to purchase by sending a draft agreement of purchase and sale to the vendor. If the seller accepts the offer with or without conditions, you need to retain a real estate lawyer in Toronto to complete the transaction.
Generally speaking, one lawyer cannot represent both parties in a real estate transaction in Ontario. Only in exceptional and limited circumstances, one lawyer is permitted to represent both parties, for example where the transferor and the transferee are the same but the legal status of the property is to be changed such as severance of land.
We have a detailed article on this topic “Can a Real Estate Lawyer Represent both buyer and seller” Click Here.
Under the Ontario New Home Warranties Plan Act and Regulations, the Ontario government established a private corporation called Tarion in 1976 to protect the right homeowner’s owners by regulating builders. The warranty covers deposits made as a down payment made to the builder.
The warrant also covers if in the event the builder delays the closing without giving proper notice. After you move into the property, you can opt for one, two year and seven-year warranties.
First-year Tarion warranty covers defects in material, unauthorized change in construction or finishing, such as colours and styles, code violations.
Two-year Tarion Coverage includes water penetration to basement or foundation walls, windows, doors, plumbing, electrical, heating systems, and exterior work damage.
Seven-year Tarion Coverage includes major structural defects to the property such as damage to load-bearing walls or beams.
On the Closing Date, we can only release the keys once we have registered the property in the purchaser’s name. In other words, we can only release keys to our clients once they become the property owner. It is common for mortgage funds to arrive by 4:30 pm on the closing date, thereby resulting in a delay in releasing the keys. If we receive funds within time, then we can release keys between 4 pm to 6 pm.
Once we have registered the property in your name, we will email you a copy of the transfer and mortgage (if applicable) and will advise you that the keys are ready for pick up. The hard copies of all the documents signed, including title insurance, statement of adjustments, trust ledger and our report on the title, will be available for pick up within two to three weeks from the date of closing.
Yes, we usually send a draft set of documents ready for signatures a day before our appointment. Please take the time to check the name spelling and registration status—Example Joint Tenants or Tenants in Common. Please do not be alarmed if you do not understand that legal jargon. At the time of our appointment, one of our real estate lawyers Toronto will discuss all documents you will be signing in detail.
Suppose you are purchasing with a mortgage. Then, in addition to your deposit made at the time of the offer to purchase, you need to make arrangements for your legal fees, land transfer tax, title insurance, government registration cost, plus any shortfall towards your downpayment. We cannot give you a specific amount until we have received a statement of adjustments from the seller’s lawyer and mortgage instructions. Both sets of documents arrive a few days before closing. In some cases, a few hours before closing. Therefore, we cannot give a specific amount until all documentation is complete.
Yes, our real estate lawyer in Toronto can sign up clients online, provided we can verify your original IDs. In some cases, we may need to meet in person to verify your IDs and witness your signatures in original. 99% of the real estate transaction can are online. If you have scheduled an online meeting with your lawyer, please ensure you have access to a smartphone, desktop, camera, mic and high-speed internet. Online real estate meetings could be delayed due to setup issues on the client-side.
A Seller is under an obligation in law to disclose any defects within their knowledge, such as revealing if the property is dangerous or likely to be dangerous or unfit for habitation (i.e.: mould issues etc.)
A seller is not liable for a hidden defect unless the seller had full knowledge of such a defect. The seller is also under an obligation to disclose known defects from the date of signing the agreement until closing.
The Police maintain a list of marijuana grow operations, but there is no public database of suicides, murders or other crimes.
A seller must disclose if a grow op when:
- there is an actual material latent defect of which the seller knows or ought to have known;
- the buyer asks a specific question or expresses a specific concern;
- the Agreement of Purchase and Sale contains representations that the property was not used as a grow op or for criminal activity; or
- there is some statutory and or regulatory requirement for such disclosure to be made.
As a buyer, you should ask as many questions as possible and complete due diligence on the property prior to signing the Purchase and Sale Agreement. Signs are difficult to spot; it is recommended to get a home inspection done and get it in writing from the seller that the property was not used as a grow op.
No. Land Transfer Tax is paid only at the time the property is being transferred from one party to another, whereas you have to pay property tax every year to the local municipality, as per the tax bill.
