Most buyers sign a standard form purchase agreement with the help of a real estate agent. At Odetoyinbos LLP, we are happy to review your agreement of purchase and sale before it becomes firm or prepare an agreement for submission to a seller.

Our promise to you is to include or point out conditions that will ensure that you are protected by suitably worded clauses and all necessary warranties are present.

Let our voice of experience be your guide.

Purchasing a new home is exciting. It is also important that one pays attention to issues to be aware of as they relate to new homes. We are happy to review the builder’s agreement of purchase and sale prior to signature. We will advise you about the new home warranty program for homes in Ontario administered by Tarion, delayed closing rules, hidden charges, utility hook ups, tree planting charges etc.

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Purchasing a new condominium is a daunting experience. After signing an agreement of purchase and sale for a new condominium, you are provided a thick builders agreement as well as additional disclosure documents for review within 10 days. We are frequently told that this is not the easiest of documents to understand. We are glad to review these documents before they become binding. We explain how the two-stage condo closing process works. We are happy to advise on and insert clauses where applicable, that give you an opportunity to back out if you do not wish to accept the agreement. We are also happy to explain the status certificate, monthly maintenance fees, difference between ownership and exclusive usage rights of parking and/or locker units in simple English.

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All purchasers need to remember when negotiating the price of any type of real estate, to make allowances for things such as land transfer tax, insurance, legal fees and adjustments for taxes and the builder’s charges referred to previously. First-time buyers are able to claim a rebate on the first $2,000 of land transfer tax. Leave the paperwork to us to ensure you can claim this rebate.

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Your greatest concern is to ensure that you have unchallenged title to the property you are about to buy. At Lawyer4me, we conduct land title searches electronically from our offices immediately you hire us. This way, we determine if there is anything registered on title that may affect your title. Our experience allows us to determine if there are construction liens, un-discharged mortgage(s), and what restrictive covenants or easements affect the property you are thinking of buying.

Our Lawyers also search for any municipal tax arrears, zoning issues or municipally work orders that may affect your title. We go one step further by searching court records to discover if the current owner(s) have any judgments against them that may later affect your ownership if you buy this property.

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If you are purchasing a resale condominium, it is likely that your purchase will be conditional upon our review of the Status Certificate. A Status Certificate is a report on the status of the condominium corporation. It provides helpful information such as whether the seller is current on their monthly maintenance fee payments and/or whether the monthly fees are expected to increase.

It will also advise on the adequacy of the condominium corporation’s reserve fund (sometimes referred to as a rainy day fund) or whether and special assessments are in the process of being levied. The Status Certificate may also state if any major repairs are needed, or if the condominium corporation is involved in, or expecting to be involved in, legal proceedings. Upon our review of the Status Certificate, we will contact you to review and explain to you in detail so that you may make an informed decision on whether or not to proceed with the transaction.

Our Lawyers review the survey plan for the property you are about to purchase. This step will reveal to us if there is any history or present encroachment on the property you are about to purchase. Where the seller has provided no survey, we are happy to advice on the path to follow in order to secure another survey or secure title insurance in lieu.

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Title insurance can protect you against the loss of your most valuable asset through mortgage fraud or identity theft. Lawyers at Lawyer4me will not conclude a transaction unless they have secured adequate insurance for you through one of the major Canadian title insurance companies – Stewart Title Stewart Title, First Canadian Title or Title plus.

Let our voice of experience be your guide.

After reviewing our searches and the survey, we correspond with the vendor’s lawyer outlining any concerns we may have and requiring these to be rectified. We will also prepare and deliver to the vendor’s lawyer those documents which the vendor must sign and provide to you on closing. These documents confirm the vendor’s undertakings, warranties and obligations previously provided under the purchase agreement.

We also represent the bank in your transaction and prepare your mortgage documents for you. It’s important to note that because we are both your lawyer and the bank’s lawyer, we can’t keep information private from either party. We will review the mortgage documents with you to ensure that the terms and conditions in them are the same as those which you reviewed with the bank’s representatives.

Here are just some of the common costs that may be incurred:

Mortgage Loan Insurance Premium

If yours is a high ratio mortgage, you may need mortgage loan insurance. To get this insurance, you will be asked to pay the required insurance premium. Your lender may add the mortgage insurance premium to your mortgage or ask you to pay it in full upon closing.

Appraisal Fee

Your mortgage lender may require that the property be appraised at your expense. An appraisal is an estimate of the value of the home. The cost is usually between $250 and $350 and must be paid when you contract for those services.

Down Payment

At least 5% of the purchase price is usually required for a high-ratio mortgage and at least 20% of the purchase price is usually required for a conventional mortgage.

Status Certificate (Condominiums)

This applies if you are buying a condominium and could cost up to $100.

Home Inspection Fee

Remember that this may be a condition of your Offer to Purchase. A home inspection is a report on the condition of the home and may cost over $200, depending on the complexities of the inspection. For example, it may be more costly to inspect a home that has large square footage, one that is expensive or one where contaminants such as pyrite, radon gas or urea formaldehyde are suspected.

Land Transfer Tax

You will have to pay this provincial and municipal charge upon closing if buying in Toronto). The cost is a percentage of the property’s purchase price. Click on this link to determine your land transfer tax payable for your transaction http://www.trebhome.com/buying/LTT_calculator/ltt_calculator.htm

Prepaid Property Taxes and/or Utility Bills

To reimburse the vendor for pre-paid costs such as property taxes, filling the oil tank, etc.

Property Insurance

The mortgage lender requires this because the home is security for the mortgage. This insurance covers the cost of replacing the structure of your home and its contents. Property insurance must be in place on closing day.

Survey Cost

The mortgage lender may ask for an up-to-date survey or certificate of location prior to finalizing the mortgage loan. If the seller does not have one or does not agree to get one, you will have to pay for it yourself. It can cost in the $1,000 to $2,000 range. In most cases a Title Insurance Policy will be an acceptable alternative.

Water Quality Inspection

If the home has a well, you will want to have the quality of the water tested to ensure that the water supply is adequate and the water is potable. You can negotiate these costs with the vendor and list them in your Offer to Purchase.

Legal Fees and Disbursements

Must be paid upon closing.

New Construction Fees

When buying new construction the Builder Agreements provide for many additional charges in addition to the stated purchase price. These additional charges can amount to several thousand dollars. It is extremely important that you review the Agreement with your Real Estate Lawyer before signing it so these charges can be identified, quantified and eliminated or capped.

Title Insurance

Your lender or lawyer/notary may suggest title insurance to cover loss caused by defects of title to the property and or fraud. http://www.stewarttitle.ca

Moving Expenses

Service Hook-Up Fees:
Charges for utilities. You may be required to pay a deposit for utilities such as telephone and heating services especially on new properties
Condominium Fees:
You may have to make the initial payment for Condo monthly fees.

+ Tarion

Warranty Coverage for New Homes in Ontario

Most new homes in Ontario come with specific warranty coverages provided by your builder and backed by Tarion Warranty Corporation or provided by Tarion directly. This coverage, up to $300,000, begins on your date of possession and remains in effect even if you sell your home before the warranty expires.
Tarion was created in 1976 to administer the provincial laws that protect new home buyers in Ontario. These laws require every home builder to be licensed and to provide specific warranty coverage with every new home.
Tarion maintains a fund that is used to ensure your warranty is honoured even if the builder refuses to do so or goes bankrupt.
Tarion also sets minimum customer service requirements that have important benefits for home buyers:
Your builder must provide you with a copy of Tarion’s Homeowner Information Package at or before the Pre-Delivery Inspection (PDI) of your new home.
Your builder is required to guide you through a PDI of your completed home to assess its condition before you take possession.
You should also complete the appropriate Statutory Warranty Form(s) and submit them to Tarion on time.
Send a copy of your completed Statutory Warranty Form(s) to your builder so they can repair or otherwise resolve the items.
After you submit each Statutory Warranty Form, your builder has a specific period of time in which to repair or otherwise resolve the warranty items listed. If items are not resolved within that time, then you have 30 days in which to contact Tarion to request conciliation.
Pre-Move Protection

Freehold Homes

Deposits and instalments paid by new home buyers are protected to a maximum of $40,000.
Purchasers may be able to claim up to $5,000 for delays in closing beyond five days without proper written notice from your builder, or beyond 120 days for any reason.
Condominium Units
Deposits of up to $20,000 are protected by Tarion, and deposits above this amount are protected separately by the trust and excess deposit provisions of the Condominium Act.
Purchasers may be able to claim up to $5,000 for delays in closing beyond five days without proper written notice from your builder, or beyond 135 days for any reason.
Post Move Warranty for Freehold and Condominium Units
One Year Warranty
Requires that your home is constructed in a workman-like manner and free from defects in material;
Ensures your home is fit for habitation;
Protects your home against Ontario Building Code violations;
Ensures your home is free of major structural defects.
The Two Year Warranty
Protects your home against water penetration through the basement or foundation walls;
Protects your home against defects in materials, including windows, doors and caulking, or defects in work that result in water penetration into the building envelope;
Provides coverage for defects in work or materials in the electrical, plumbing and heating delivery and distribution systems;
Provides coverage for defects in work or materials which result in the detachment, displacement or deterioration of exterior cladding (such as brickwork, aluminum or vinyl siding);
Protects against health and safety violations under the Ontario Building Code;
Ensures your home is free of major structural defects.
The Seven Year Warranty
Provides coverage for any defect in work or materials that result in the failure of a load-bearing part of your home’s structure or materially and adversely affects its load-bearing function.
Provides coverage for any defect in work and materials that significantly and adversely affects the use of the building as a home.

We cannot guarantee a time your keys will be ready for pickup, however normally keys are available at our office between 2:00 pm and 5:00 pm on the day of closing. Often your keys may not to be available until 5:00 pm. If the keys are available at an earlier time, we will contact you and let you know. Under no circumstances may the keys be released before your deal has closed.

Often we will meet with you to have your documents signed and to collect closing funds within the week prior to your closing. Sometimes you may meet with us one or two days prior to your closing.

Generally we do not know how much money you will need to bring in to our office until close to the closing date. This is because the calculation is dependent on our receipt of a Statement of Adjustments from the seller and, in the event you are obtaining a mortgage, mortgage instructions from your lender.

Once we are in receipt of the requisite documents, we will advise you to bring in a bank draft, or certified cheque, the balance due on closing, our fees and disbursements, Land Transfer Tax and Title Insurance.

We ask that you contact water, hydro and gas to advise them of your closing date and make the necessary arrangements to have the utilities transferred and functioning in your name for closing.

We notify the utility companies as well in writing with the same information.

You must set up your home insurance in advance of the closing date. In the event that you are getting a mortgage, you must advise your home insurance company of the name of your lending institution. Your lender will require that we are in receipt of an Insurance Binder Letter from your insurance company prior to your closing. Please ask your home insurance company to fax the Insurance Binder Letter to our office prior to your closing.

In order to qualify for the instant first time homebuyer rebates for the Ontario/Toronto Land Transfer Tax the following must apply:

The purchaser must be at least 18 years of age.
Application for the refund must be made within 18 months after the date of the conveyance or disposition. Odetoyinbos LLP will get you an instant rebate.
The purchaser must occupy the home as his or her principal residence within 9 months of the date of closing.
The purchaser cannot have owned a home or had any ownership interest in a home, anywhere in the world.
A spouse of the purchaser cannot have owned a home or had any ownership interest in a home, anywhere in the world while he or she was the purchaser’s spouse.

Let our voice of experience be your guide 905-487-6333

If your spouse owns a property AFTER you were married then you are NOT a first time homebuyer because you have an interest in your spouse’s property.

If your spouse sold the property BEFORE you were married then you ARE a first time homebuyer but your spouse is not. You would qualify for 50% of the rebate if both you and your spouse were on title. If you take the property in your own name then you would qualify for 100% of the rebate.

Let our voice of experience be your guide 905-487-6333

Land Transfer Tax is not payable if there is a transfer of ownership/title between spouses or common law partners who have been together for more than 3 years.

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Land Transfer Tax IS applicable if there is a transfer of ownership/title between parent and child.  If the child is receiving the property as a gift then Land Transfer Tax is based on the amount of the outstanding balance of the mortgages/Lines of Credit.  IE: if the property is a gift and there is a balance of $200,000 on the mortgage then land transfer tax is based on $200,000 (if the property is located in Toronto then Toronto Land Transfer Tax is also applicable.  If the child is being added to title then Land Transfer Tax is based on the proportionate share of the property.  IE: if the child will be receiving a 50% interest in the property then they will be responsible for 50% of the Land Transfer Tax based on $100,000 NOT $200,000.

 Let our voice of experience be your guide 905-487-6333

Only the buyer is responsible for paying the Land Transfer Tax.  The Seller does not pay Land Transfer Tax.

 Let our voice of experience be your guide 905-487-6333

BUYING IN ONTARIO:  If you are a first time homebuyer you will qualify for up to $2,000.00 rebate in Ontario.  IE: if your Ontario Land Transfer Tax is $2,500.00 then you would qualify for the full $2,000.00 rebate and only pay $500.00.  If the Land Transfer Tax applicable was $1,800.00 you would qualify for a $1,800.00 rebate and you would pay $0.00.

BUYING IN TORONTO: If you are a first time homebuyer you will qualify for up to $3,750.00 rebate in Toronto.  IE: if your Toronto Land Transfer Tax is $2,500.00 then you would qualify for the full $2,500.00 rebate and only pay $0.00.  If the Land Transfer Tax applicable was $4,750.00 you would qualify for a $3,750.00 rebate and you would pay $1,000.00.

Let our voice of experience be your guide 905-487-6333

The purchaser’s Lawyer pays the Land Transfer Tax on behalf of the purchaser on the closing date. The purchaser will be required to provide their lawyer closing funds (certified) that will cover the closing expenses.

 Let our voice of experience be your guide 905-487-6333

Your closing funds will be ready for pick up from our office upon the closing of your transaction or the following business day. We will contact you as soon as possible to advise you that your funds are available.

You should be out of your house no later than 12:00 noon on the date of closing. It is common courtesy to leave your property in a clean and broom swept condition for the purchasers to take occupancy. All garbage and debris should be disposed of prior to your vacating the property.

We ask that you contact water, hydro and gas to advise them of your closing date and make the necessary arrangements to have the utilities transferred out of your name for closing. Please make sure to provide them with a forwarding address to send the final bill. We inform the utility companies as well in writing with the same information.

Prior to your closing, we will require you to provide us with your most recent Property Tax Bills. It is advisable to keep your tax payments as current as possible. Your property taxes shall be set out as an adjustment in your Statement of Adjustments which we will review with you prior to your closing.

When our clients are both buying and selling their homes, we encourage them to save themselves a lot of stress by scheduling the closing dates on different days.

Many people forget that their sale must close first so that they can use the closing on funds on their sale toward their purchase. If any hiccups arise on the closing of your sale it could negatively impact the closing of your purchase. For example, your buyer may have problems with their lender on the day of closing and may have difficulty coming up with their closing funds. This could trigger a domino effect, because you will now have problems coming up with the necessary funds to close on your purchase. If the person selling to you is also purchasing, they will be in the same boat as you.

If your purchase and sale are not on the same day, it will allow for more time to make the necessary arrangements to deal with unexpected issues that may arise. When the closings are on the same day, there is a very short amount of time to resolve dilemmas. If we help you resolve the problems on your sale very late in the day, we will not have time to complete your purchase.

Moving home can be stressful enough as it is. If at all possible, do your best to avoid scheduling your sale and your purchase on the same day.

We will meet with you a day or two before closing to sign and review all closing documents. At this meeting, we will also review the statement of adjustments which sets out the adjusted purchase price after taking into account your deposit, the vendor’s realty tax payments, and the builder’s adjustments, if applicable. You’ll bring in the funds required to close including the land transfer tax and the balance of the legal fees by certified cheque or bank draft. We will deal directly with your bank to obtain the mortgage funds.

We are equipped to handle the most technological advance in the real estate field: E-Reg. Registration of your deed and mortgage is accomplished electronically from our desktop. In most cases, no attendance is required at the local land registry office with the accompanying delays in the delivery of keys. Your closing is accomplished quickly, efficiently and professionally and keys get to you much sooner.

We will provide you with a full report and accounting after closing explaining in detail the work we’ve done and enclosing all signed documents including your deed and mortgage.