a) Moving Time and Keys on Closing
Before keys can be released by
the lawyer for the purchaser on the date of closing, the mortgage
lender must provide closing funds, closing cheques must be
certified, documents must be exchanged between the lawyers for
the buyer and seller, and the land registry office 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.
b)
Fire and Contents Insurance
Purchases of residences (that are NOT
condominiums) CANNOT be 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.
c)
Closing Cheques and Appointment in the Law Office
Prior to Closing
About TWO DAYS prior to closing (or as soon
as our office has been able to 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.
d) Closing
Adjustments to the Purchase Price
The certified cheque you will be asked to
bring for closing will include any 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.
e)
Mortgage Financing
BE AWARE THAT IF YOU ARE ARRANGING
AN INSURED MORTGAGE (where 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 AND YOU MUST SATISFY THE REQUIREMENTS on the "FREE POWER OF ATTORNEY" page on this website.
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:
(1)
satisfy any special requirements by the lender
(e.g. - proof of income, proof of cash down payments, payment of other
debt obligations, if required by the mortgage lender, etc.) in order
to avoid financing problems on closing day;
(2)
Please confirm with the mortgage lender that mortgage
instructions have been sent to our office so that we can finalize processing
your mortgage financing for closing.
f)
Informal Loans from Friends or Relatives
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.
g)
If Closing Funds are Being Provided by One Partner
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.
h)
Names for Ownership Registration
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.
i)
Title Insurance
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.
j)
If Your Purchase is from a BUILDER
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.
k)
Utilities and Cable T.V. and Moving Checklist
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.
l)
If You are Purchasing a Condominium
(1)
CONDOMINIUM RULES
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:
(i) carpeting on various types
of floors to reduce sound transmission; or no hardwood floors (unless
management consent is obtained in writing)
(ii)
no barbequing on balconies
(iii) no satellite dish (use of common area
cable T.V. system is required)
(iv) no parking of commercial or recreational
vehicles
(v) use of elevators for moving sometimes
have restrictive hours, require reservations and/or security deposits. IF YOU ARE PURCHASING A CONDOMINIUM WHERE AN ELEVATOR OR A LOADING AREA must be used for your move, contact the management office as soon as possible to book your reservation for moving.
(vi) no office, business or commercial uses within condominium
units
(vii) pet restrictions that might relate to the kind of pet, the number of pets or the maximum weight of a pet.
(viii) types and colour of window coverings, (white
or off-white) as can be seen from exterior of building
(ix) plantings and other uses of exterior
patios
(x) unit owner's liability for damaged
exterior doors, including garage doors and/or added items such as
central air, fireplaces, etc.
(xi) noise generated by musical instruments
(xii) 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.
(2) CONDOMINIUM COMMON AREA CHANGES
AND INTERNAL UNIT CHANGES
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.
(m)
Wills
As you are purchasing real 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.
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