- Real Estate Purchases -

The purchase of a new home is an exciting event, but it can also be an overwhelming one.  Your lawyer should be able to put your fears to rest and make things less intimidating.  I make it a point to be available to answer any questions which you may have during the purchase process, and I personally attend to all the closing details on the Closing Date to ensure everything goes smoothly.

A house purchase is a complex legal and financial transaction, and it should not be taken lightly.  Your lawyer acts on your behalf to coordinate this transaction; investigating title and other matters relating to the property, managing the receipt and payment of funds relating to the transaction, as well as creating, reviewing and legally registering all the necessary documents and arranging for title insurance.  A lawyer is the only person who is legally entitled to perform all these functions.

If you have not already signed an Agreement of Purchase and Sale (commonly referred to as the "offer"); it is a good idea to have a lawyer review the terms of the Agreement before you sign, to ensure that you are properly protected. 

It is your responsibility as the purchaser to ensure that the home is physically sound.  You may want to have your lawyer or real estate agent insert a condition in the Agreement of Purchase and Sale that calls for an independent home inspection.

You will usually have to contact a financial institution to obtain a mortgage.  Once you have been approved for a mortgage, your lawyer will deal with the institution to obtain the funds and to draft the mortgage document itself.

You should also contact an insurance company to arrange for fire and liability insurance on the home.  Although you will not actually own the home until the closing date, it will be necessary to make these insurance arrangements in advance, so that they will be in place on the closing date and at no time is the home left uninsured.

Your lawyer will check the legal background of the home before the closing date.  He or she will ensure that the vendor actually has legal ownership ("title") which entitles the vendor to sell it to you. 

Your lawyer will need to pay out certain amounts of money to search the title of the property, search for liens, register your Transfer/Deed and Charge/Mortgage, etc. These amounts are called "disbursements", for which you reimburse the lawyer on the closing date.  It is important to distinguish between the lawyer's fee and disbursements.  The fee is the payment for the lawyer's service for acting on your behalf.  Disbursements are amounts that a lawyer must pay to others to complete the transaction, for which you in turn must reimburse the lawyer.

Land Transfer Tax must, in most cases, also be paid when a property is purchased.  This amount is collected by your lawyer which he in turn pays to the Ministry on the Closing Date.  Please click on the link for more detailed information; including how to calculate the Land Transfer Tax.

Legal Fees:

My fee for a purchase transaction is $599.00. plus HST.

There will also be a number of disbursement charges which can run approximately $750.00. to $850.00 (including HST) depending on the details of the transaction.

Please feel free to contact my office if you have any further questions and for a breakdown of the disbursements involved in your transaction.

Some Other Things to Think About ...

Land Transfer Tax

What is Title Insurance?

What Happens on the Closing Date?

Send E-mail to David Fysh at david@davidfysh.com

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