Real Estate Lawyer, Mississauga Ontario

Disbursements

WHAT ARE DISBURSEMENTS

DISBURSEMENTS DEFINITION 

Disbursements are costs and expenses paid by a lawyer on behalf of a client in order to close a Real Estate deal. It is important to note that theses are expenses and not our fees. These expenses include:

Title Search

Title Search or property title search is a process of retrieving entire history of the property in question. Our office will perform the search to confirm the ownership of the property, any outstanding mortgage, liens charges or encumbrances and will also search for any fraudulent activity on the property. Based on the title search our office will inform the lawyer of the seller to clear all non-permitted encumbrances.

Land Transfer Tax

The land transfer tax is technically not a disbursement but it is listed herein because it is an expense which the buyer would have to pay at the time of transferring the property in his/her name.  The Land Transfer Tax to the Government when the transfer of title documents are presented for registration. This expenses is only to be paid by the purchaser.

Title Registration

The Property Registry charges a $85 (without GST) for a registration of a document.

Mortgage  Registration

The Property Registry charges a $85 (without GST) for a registration of a document.

Building Location Certificate (Survey Certificate)

A Building Location Certificate exhibits the  dimensions, positions and location of the land and/or buildings  of  a  property in question. Building location certificate primary function is to highlight any encroachments from adjoining properties. It is important to have the location survey certificate to guarantee the ownership of the property and protects the purchaser by highlighting any encroachments on the property. If the purchaser is seeking to secure a mortgage then the financial institution will require an up-to-date Building Location Certificate which could cost up-to $600. If the property is old it may not have a Building Location Certificate and therefore he Lawyer of the purchaser on behalf of the client will obtain Title Insurance cover up this deficiency.

Zoning Memorandum

The Zoning Memorandum is equally important as a Building Location Certificate.   The Zoning Memorandum will certify if the property in question complies with the zoning requirements such as residential, commercial or agricultural. If the property is old it may not have a Building Location Certificate and therefore he Lawyer of the purchaser on behalf of the client will obtain Title Insurance cover up this deficiency.

Title Insurance

Many financial institutions will require a Title Insurance for almost every mortgage, unless it is brand new home, in place of Building Location Certificate and Zoning Memorandum,  Title Insurance  may vary from $260.00 to $360. This is a one time charge levied at the time of purchase of property.

Tax Certificate

A tax certificate, issued by the City ,  confirming that all property taxes are paid on your property. The certificate costs between $65 to $150.

Miscellaneous

    • File Administration and Storage fees
    • Courier
    • Bank Charges for Certified Cheques to the Seller Lawyer
    • Photocopying
    • Facsimiles
    • Advance 30 days of interest depending on your mortgage rate. This is a refundable interest depending on the date when we receive funds from your lender. Suppose if your lender releases funds after 5 days then the lender will charge interest from the 6th day and we will adjust 5 days of interest from your funds and refund you the remaining 25 days of advance interest charged.

WHAT is a disclosure statement

Latent Defects

A Seller is under an obligation in law to disclose latent defects such as disclosing if the property is dangerous or likely to be dangerous or unfit for habitation (ie: mould issues etc.)

A seller is not liable of a latent defect unless the sell had full  knowledge of such defect. However on the other hand from the date of signing the agreement of sale and purchase and prior to closing all known deficiencies must be disclosed by the seller to the purchaser.

Marijuana Grow Operation

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:

    1. there is an actual material latent defect of which the seller knows or ought to have known;
    1. the buyer asks a specific question or expresses a specific concern;
    1. the Agreement of Purchase and Sale contains representations that the property was not used as a grow op or for criminal activity; or
    1. there are 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 Agreement of Purchase and Sale. If it is not in writing it does not exist.