Q & A
Below is a list of frequently asked questions. Please click on the boxes below to receive detailed answers to the questions you are interested in. For any further answers, please call our office at 416-920-6312.
a) Call 1: Typically, when your purchase and sale agreement is firm – and within a reasonable time before your closing date (2-3 weeks if we receive your agreement by then), we would call you to next steps. At that time we will review some details with you regarding your contact information, title, mortgage, whether you are a first time home buyer and we will also email/mail you our opening letter and retainer agreement so you have all the above information in writing as well.
b) Call 2: Two or three days prior to your closing date, we will contact you to schedule your closing appointment, which will be scheduled for one to two days prior to your closing date.
At that time we will also advise you of the final amount of funds that you will bring for your closing.
Determining the final amount of funds for closing requires that both the vendor’s statement of adjustments as well as the mortgage bank’s figures be sent to my office. Upon receipt of both these figures, we will contact you and proceed to schedule your closing appointment. These figures are usually only given to us at a time very close to the closing date. Further, in order for the closing to take place, we would also require your insurance binder from your insurance agent.
c) Actual closing appointment at our office: During your closing appointment, we will ask you to put us in funds to cover the balance due on closing as adjusted (subject to adjustments for overpaid or underpaid realty taxes, oil [if property is oil heated], maintenance charges [if a condominium is involved] or various builders’ charges [if a new home is involved]. We will review the whole transaction with you in detail, explain all documents to you and answer any questions you have at that time. So that Law Society recommendations are complied with, your closing funds should be either by a cheque that is certified or a bank draft in the name of “FISCH & ANTONETTE, IN TRUST”.
d) On the day of closing, keys can only be given to you after your closing is registered which most often takes place late in the day between 3-5pm. Most keys after closings are only available in the 3-5 p.m. and you can pick them up at our office.
Our fee is set out on the link above.In addition to the purchase or sale, the fee for any mortgage or line of credit which we prepare on your behalf is $300.00.Additionally, there will be approximately $800.00 of disbursements for the small deals, which includes your title insurance premium, registration fees, title searches, execution searches, couriers, etc…. HST will be charged on our fees and disbursements.The exact amount of all the charges cannot be determined until shortly before closing. Since Title Insurance is based on the purchase price, for transactions over $500,000.00 the disbursements will increase by the increased costs of title insurance as the price increases. In cases where other than the usual complications arise the fees will be increased.PLEASE NOTE: The above fees have been quoted to you on the understanding that unusual difficulties will not be encountered in the completion of the transaction or extensions of the closing date. In the event that unexpected difficulties or extensions arise as a result of matters beyond our control, the right to increase the fees to reflect any additional time expended in the completion of the transaction is reserved.In addition, you will be responsible for the usual closing adjustments, such as property taxes, maintenance (if a condominium), sometimes water or oil, if applicable. These adjustments will be reviewed with you prior to closing.You will also be required to pay Land Transfer Tax to the Province of Ontario on closing.You may also be required to pay Municipal Land Transfer Tax (for City of Toronto properties only). The Municipal Land Transfer Tax will be charged on a graduated basis depending on the value of consideration paid for the property. The rate on a residential property is as follows:
Value of Consideration MLTT Rate
Up to and including $55,000.00 0.5% plus
$55,000.01 to $400,000.00 1.0% plus
Over $400,000.00 2.0%
When you bring in the final amount of funds for your closing, we will review the whole transaction with you in detail, explain all documents to you and answer any questions you may have.
You must decide a) how “title” is being taken b) tell us how you plan on “using “ the property (are you living in it or renting it) c) arrange your “mortgage with a lender” and d) arrange “home insurance”.
You may own your property in any one of the ways listed below. (Keep in mind, the names that are on title must match the names on your mortgage)(a) Joint Tenancy – Title may be taken by two or more persons as “joint tenants”. If one owner should die, title will pass to the survivor by right of survivorship, unaffected by a last will and testament. This method is often used by married couples.(b) Tenants-In-Common – Title may be taken by two or more persons as “tenants-in-common”. If one owner should die, his or her share of the property would become part of his/her estate to be dealt with according to the last will and testament. The surviving owner would retain only his/her undivided interest in the property.(c) Individual Title – If title is taken in the name of one person alone. If that person is married, his/her spouse may acquire rights of possession or ownership in the property even though such spouse is not registered on title.There are tax and matrimonial law consequences arising from each of these choices.
b) Use of Property
If the property will be used as a rental property or for any purpose other than as a single family residence, kindly advise us immediately. If you do have a special use for the property, please also tell us in writing if you wish us to confirm or deal with any aspect of the zoning needed for that special use.
c) Mortgage Financing
If the agreement is conditional on arranging a new mortgage or on your being approved to assume an existing mortgage, YOU MUST ACT IMMEDIATELY. You should also have the mortgage broker or lender send me all necessary documentation and instructions as soon as possible. In most transactions the delay in closing is because mortgage arrangements were not started early enough.Note: It is very important to understand that the exact names of those taking title – must also be on the mortgage. If these names are not the same then the entire process of being approved for a mortgage must be completed again. Further all parties who are taking title and who are on the mortgage must sign all closing documents.Please note that we do not get involved in mortgage arrangements, so that if your purchase is conditional upon a mortgage being arranged before a particular date, we would ask you to keep it in mind and notify us at least five days before your closing date what the status of your mortgage arranging is so that we can assist you to notify the vendor that your condition is not met. If you do not call us in time we may not be in a position to help you on this point. Most clients and mortgage brokers delay finalizing the mortgages until very close to the closing date and that causes major problems and disappointments at the closing.
d) Fire Insurance
Except for condominiums, please arrange for your insurance agent to send or fax a binder letter to us well in advance of closing. The lender will need this letter if you are financing the purchase by either assuming an existing mortgage or by placing a new mortgage. The fire insurance coverage on the property is both for your own protection and for the protection of any mortgagee. We recommend that you obtain a comprehensive policy containing additional coverage such as contents and personal liability. Please arrange insurance as soon as possible as in the event of substantial damage before closing, you are entitled either to take the insurance proceeds and complete the transaction or to terminate the agreement.While the property is subject to mortgage, it will be necessary to maintain insurance coverage which is satisfactory to the mortgagee(s) and which shows loss payable to the mortgagee(s).
Please note: if you are purchasing a condominium then the condominiums master policy will cover the structure and you do not need to arrange insurance for that, but you do need to arrange your own insurance for your contents, any improvements to the unit and liability inside the unit.
If you are buying a new home, you must arrange with the builder or its representative to inspect the property just prior to closing in order to complete the “Certificate of Completion”. You should list all deficiencies or unfinished items on the certificate and obtain the builder’s agreement in writing on the dates when any unfinished work will be completed.
After closing you will receive a “Warranty Certificate” from the New Home Warranty Program. This warranty only covers matters not completed in a good and workmanlike manner and give you no protection where work is not done at all. If you have any further questions about the New Home Warranty Program, you should telephone the local office in Toronto at (4l6) 229-9200.
The Law Society mandates that all lawyers, acting on behalf of purchasers, to inform client about title insurance and its advantages.
This insurance guarantees your interest in title against title fraud and many hidden risks and undescribed interests that may not be uncovered by the investigative searches conducted by a lawyer, such as encroachments of structure onto neighbouring lands or municipal property.
At Fisch & Antonette, as part of the work we complete on any Purchase transaction at our firm, we arrange for issuance to you of a First Canadian Home Ownership Title Insurance Policy which provides you with title protection. Please refer to the following web site www.firstcanadiantitle.com for more details.
This firm and most banks and mortgage companies will only complete closings with title insurance.
Title Insurance does not replace a lawyer. You have entrusted us with the task of ensuring you have proper title to the property you have purchased. We are therefore required to examine all relevant documents in the Registry office for a period of up to forty (40) years in conjunction with obtaining title insurance. Many other searches, such as for arrears of municipal taxes and utility charges, must also be done (if there is no title insurance). If these searches reveal anything which adversely affect the property, we will contact you immediately.
Please click on to the closing calculator on the link and enter the necessary information to calculate our fees: http://torontorealestatelawyer.io/get-a-quote/
I would estimate that my fee on a simple small closing without complications or delays will be $600.00 plus disbursements.
Disbursements are expenses prepaid by me for you and include $71.30 re register discharges of any mortgage which I pay off, courier charges to deliver discharge money to the mortgage company, etc. The Law Society of Upper Canada also charges $65.00 on every transaction. HST will be charged on my fees and disbursements.
Please note that the above quotation assumes no reasonable unforeseen complications arising. In any such event, you will be notified and an hourly rate will be quoted.
Also, the fees quoted are binding for services beginning within 30 days. Expenses may be subject to government cost changes. H.S.T. is to be added.
In order that I may prepare the documents for closing, would you please provide me with the following as soon as possible:
l. Your deed, if available;
2. A copy of any survey of the property, if I did not act for you on your purchase of this property;
3. A copy of your current tax bill (please indicate what payments have been made for the current year and if you are on pre-authorized payment program, please cancel same as soon as possible);
4. The name and address of each Mortgagee and/or secured Line of Credit on your property (if any) and the mortgagee’s reference number;
5. The spousal status of each person on the deed (check one)
Subject property is / is not our family residence
6. A copy of your current water bill if you have a Flat Rate account;
7. If the house is heated by oil, would you please advise us of the size of the tank;
Prior to closing, please make arrangements for the following:
l. The reading of Hydro and Water meters (if there is one) as of the date of closing, so that charges for these utilities will be made to you only up to the closing date;
2. The reading of the gas meter (if there is one) as of the date of closing so that charges for this utility will be made to you only up to the closing date;
3. The disconnection of your telephone and termination of this service;
4. The cancellation of television cable service;
5. The filling of your fuel oil tank (if any) so that we may charge the purchaser for a full tank of oil on closing;
6. The transfer of insurance coverage for the contents of your house and your own personal liability to your new house. You will probably not be able to transfer your fire coverage to the purchaser; therefore, you should make arrangements for cancellation of that coverage; be careful to ensure that your agent does not automatically cancel the coverage, occasionally difficulties are encountered in closing which may delay the closing for a day or two and you should not be left without coverage.
7. Cancellation of any other services which may be provided to the property, such as newspaper, soft water service, etc.