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Purchasing a Home

The Wilson Team group of professionals are not your typical brokers or banks. We have helped Canadians build millions of dollars in wealth over the past 2 decades. Its time to look at things with a different lens. Its time to look at innovative solutions and make this next mortgage work for you.

We want to help to create cash flow, budget for the unexpected or expected, build wealth, mitigate risk and so much more.

There are various types of mortgages available in Canada:
  • Open mortgage: Offers maximum flexibility with the ability to pay off the mortgage before it is due.
  • Closed mortgage: A commitment with a pre-determined interest rate over a predetermined period of time, with a penalty for paying it off early.
  • The BIG question you should consider is whether you will be in a position to negotiate with a bank

    Canadians break mortgages for all kinds of reasons, including:

  • Interest rates have gone down
  • Their financial situation has changed
  • They want to buy a new home and move . . .
  • Agreement of Purchase and Sale:

    A lawyer should always be consulted before signing the agreement of purchase and sale. The lawyer will advise the client about the terms of the agreement and possibly become involved in the negotiation or even drafting of the agreement…

    Nonstandard Additions to the Agreement

    Nonstandard additions to the agreement should be discussed between the lawyer and client….

    Property Survey
    One of the most important problems involved in the sale is whether or not a survey exists that is reasonably up-to-date. If there is no additional clause to the agreement…
    Additional Considerations
    Several other considerations often arise outside the agreement but may be just as important to the vendor. The total cost of the transaction including fees and disbursements should be explained. Whether or not a “double deal” should take place on the same day for the sale and purchase of a new property or whether or not bridge financing should be obtained for a more leisurely move may be important to some vendors.
    The Lawyer’s Role in Sale of a Property
    We will explain what we expect of the client and what you can expect of us as your lawyers. You will have to provide us with all title documents, tax bills, and any other pertinent documents. The client will have to advise if there have been any additions to the property since the date of the original survey to determine whether the survey is reasonably up-to-date. We will inquire of the client as to what adjustments are to be made on closing such as municipal taxes, and whether or not an oil tank should be adjusted for. Lastly the typical procedure on closing day will be discussed as to how much money the client will receive after the payment of all fees, adjustments and commissions.
    Pre-Closing
    We will respond to any pertinent requisitions received from the purchaser’s lawyer. Any title problems revealed from the requisition letter must be solved before closing. Normally these problems are rectified between the lawyers without any difficulties. The client will be advised not to cancel insurance on the property until the day after the transaction has been completed and if necessary we will obtain a release from the mortgage company to allow the policy to be cancelled.
    Mortgages on the Property
    Any mortgages that are presently on the property will have to be discharged. A payout statement will be obtained from the mortgage company and a direction will be signed authorizing sufficient proceeds from the sale to go to the mortgage company to discharge the outstanding mortgage. Our undertaking will be given to the purchaser’s solicitor to register a discharge after closing.
    Statement of Adjustment

    A statement of adjustments will be prepared and reviewed by both the client and the purchaser’s solicitor prior to closing. The statement takes into account the deposit, the mortgages to be discharged, the tax adjustment, adjustments for oil tank (in any) and any other adjustments that may be necessary. A direction of proceeds will be signed by the client authorizing the payment of any outstanding mortgages, and the balance paid to this law firm in trust. In addition to the mortgage, any other items to be paid will customarily be paid by this firm including the real estate commission.

    When to Sign the Documents?

    Several days before closing an appointment will be made with the client to have all documents signed by the Vendor. These would include the Transfer (formerly the Deed), Declaration of Possession, and/or Closing Certificate, Undertaking, Bill of Sale if applicable. These documents will be reviewed by the lawyer with changes to be made, if applicable, before witnessing the vendor’s signature. It is customary that a key to the front door be provided to the lawyer at this time to be given to the purchaser on the actual closing. It is suggested that all other keys be left in the property and that under no circumstances should a key be given directly to the purchaser.

    Closing The Transaction

    After the Transfer and other documents are signed, the key(s) and relevant documentation are sent to the purchaser’s lawyer in exchange for funds and relevant documentation.

    Registration

    However, registration can only take place when the local Land Registry Office is open, which for the purposes of closing is between 9:00 a.m. and 5:00 p.m.

    After the Closing

    Approximately four to eight weeks after closing a full report, trust statement and statement of account together with copies of all documentation will be provided to you.

    For more information contact The Wilson Team or call 613-695-9250

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