RESIDENTIAL REAL ESTATE LAW AT PDC

AGREEMENT OF PURCHASE AND SALE

• Once you have found the house of your dreams, you will enter into an agreement of purchase and sale. Unfortunately, many people tend to forget that they are signing a contract. Once you sign it, you have to live with it, including any less than favourable terms. Therefore, it is a good idea to have your lawyer review it before you sign. The agreement should include and properly describe the list of chattels you are buying (e.g., appliances, blinds), an escape clause in the event your current home does not sell and a condition that the purchase is dependent on a satisfactory home inspection.

TITLE INSURANCE

• For some, title insurance might be the answer to the survey question, since it may allow you to bypass the requirement for an up-to-date survey. In addition, it offers homebuyers another way of guaranteeing good title. If there are any problems after closing, the buyer will be covered for losses up to the amount of the policy. The amount of the policy is generally equal to the purchase price of the home.

LAND TRANSFER TAX

• Land transfer tax is a tax paid by the purchaser, usually at the time the Transfer of the property is registered. The amount of Land Transfer tax is based on the purchase price of the house. i.e. ,

  House Price Range and Land Transfer Tax Rate
  $0 - $55,000	0.5%	$250,001 - $400,000	1.5%
  $55,001 - $250,000	1.0%	Exceeding $400,001	2.0%

GOOD TITLE

• Although you are buying the physical land and house, neither is worth much if you do not have good title to them. Good title means that the house or property you have purchased is really yours and that no one else has a claim to it that you do not know about. Good title also means that your property is correctly described in all official documents and that those documents are properly registered. This is perhaps the most important service that your lawyer will provide.

SURVEYS

• The need for a survey is usually an issue when buying and because of the cost, most buyers try to avoid them. What exactly is a survey? A survey is a written diagram showing exact measurements of the lot(s). It is important to understand that there are different types of surveys. Mainly, a Lot Location Survey, which shows the boundaries of the lot, and a Building Location Survey, which shows all buildings and the distance of the buildings from the lot lines. A purchaser requires a building lot survey to satisfy themselves and their mortgage lender that all buildings are built within the required distance within the lot lines.

KEYS

• Keys will be released when there has been exchange of documents, monies and completion of all registrations on the closing day. The completion of these items usually does not occur until mid to late afternoon. Registration must be completed on/or before 5pm, but a seller is entitled until 6pm to vacate the premises, notwithstanding keys have been released earlier on in the day.