Our Real Estate Law Practice includes:

• Residential & Commercial Purchases & Sales
• Refinancing, Mortgages & Vendor Take Back
• Private Purchase and Sale by owner(s)
• Private Mortgages - Second/Third Mortgages
• Construction Mortgages and Contracts
• Residential & Commercial Leasing
• Transfer of Titles
• Power of Sale
• Non Resident - Real Estate Taxation Matters
• Independent Legal Advice

It is very important to know in advance how much money you will actually receive from the sale of a property and how much you will need for your purchase. At Catherine A. Egboye Law Office we calculate these costs for you and provide you with an estimate of the total amounts required for you to close your transaction.

There are several costs incurred on all real estate transactions referred to as DISBURSEMENTS. These disbursement fees are payments made to third parties by your lawyer on your behalf during the transaction. These are unavoidable and necessary charges that are considered part of the home buying process. For example courier cost, search costs, execution certificate costs, software transaction charges, Law Society's transaction levy surcharge, registration of mortgage, registration of deed, Title Insurance and so on. These costs are flat rates which are not discounted by the Third Party Corporation. Lawyers have no way to reduce these fees at all.

Buyers normally incur a number of additional expenses; including land transfer tax, GST and adjustments in addition to the purchase price, legal fees and disbursements.     

Closing Adjustments
For a resale home, in addition to the purchase price, Buyers are required to pay to the Seller certain expenses which have prepaid on behalf of the Buyer. The expenses are pro-rated and a credit is given to the Seller as an adjustment on closing. These expenses include amounts for realty taxes, water, hydro, prepaid condominium fees (if the property purchased is a condominium) and fuel oil (if property has an oil furnace). Our law office will not be made aware of the actual amounts until before closing, at which time we will calculate the amount required from you for the balance due on closing, legal fees and disbursements and Land Transfer Tax.

For a new home purchased from a Builder the closing adjustments are greater than that of a resale home since adjustments (when buying from a Builder) can include hydro and water meter installation costs, Tarion New Home Warranty Enrolment Fee, boulevard tree planting, driveway paving, grading deposit, gas water heater, educational lot levy, municipally required fencing (if needed) and many other items which are not normally adjusted when buying a resale property.

Land Transfer Tax Rebates
First-time homebuyers may be eligible for a Land Transfer Tax rebate on purchases of newly built homes as well as re-sale homes up to a maximum of $2,000.00.

Land Transfer Rebates Eligibility include the following:
You must be at least 18 years old;
You must occupy the home as your principle residence within 9 months after the date of transfer;
You cannot have previously owned a home, or an interest in a home, anywhere in the world and
Your Spouse cannot have owned a home, or an interest in a home, anywhere in the world while being your Spouse.

NOTE: If not claimed at the time of registration, refunds must be requested within 18 months of registration.

First Time Homebuyers Programs
In Canada there are two programs to assist first-time buyers, which are the First Home Loan Insurance Program and the RRSP Homebuyers' Plan. In addition to these programs, the Ontario Government offers Land Transfer Tax rebates to first-time homebuyers.

First Home Loan Insurance Program
Since 1992, new homebuyers who meet certain financial conditions can purchase a new home with a down payment of only 5 percent. The remaining 95 percent of their mortgage is insured by Canada Mortgage & Housing Corporation or other lenders. The maximum amount that can be borrowed varies across the country, from $125,000 to $300,000.

RRSP Homebuyer’s Plan
The RRSP Homebuyer's Plan allows first time homebuyers to withdraw up to $20,000 from their RRSPs tax free to use towards the purchase of a home. To qualify as a first time homebuyer, purchasers must not have lived in a home owned by themselves or their spouses in the last five years. If both you and your spouse qualify under the Plan, you can each withdraw up to $20,000 from your RRSPs for a total of $40,000.

Before you are entitled to withdraw the money from your RRSP, you must have entered into a written agreement to purchase or build a home that you intend to occupy as your principal residence. The purchase of a cottage, for example, would not qualify for this program because it is not a principal residence.

Money can be withdrawn from your RRSP provided it has been in your RRSP for at least 90 days. Money withdrawn under this federal program must be paid back to your RRSP within 15 years. If you do not pay the full amount back to your RRSP within 15 years, the amount outstanding will be subject to tax when you file your income tax return in the following year.

Non Resident Sellers
Subsection 116(3) of the Income Tax Act requires non-resident vendors to notify the Canada Revenue Agency (CRA) within ten days of disposing of taxable Canadian property. Section 116 applies to any non-resident Vendor who disposes or plans to dispose of certain types of taxable Canadian property (TCP) and to any Purchaser of such property from a non-resident. Generally, if a Purchaser has acquired any TCP from a non-resident Vendor, including real property, the Purchaser is liable to pay and must remit 25% of the proceeds of the disposition to the Receiver General within 30 days after the end of the month in which the Purchaser acquired the property. Pursuant to subsection 116(5), the Purchaser is required to withhold this amount unless, after reasonable inquiry, the Purchaser had no reason to believe that the non-resident Vendor was not resident in Canada; or the Vendor is able to produce a clearance certificate in respect of the property; or the disposition is exempt from Canadian income tax as a result of the application of a tax treaty.

Consequences if you change your mind after signing an Offer
Once the offer or counteroffer has been formally accepted, both the Buyer and Seller are legally bound by its terms. Walking away from a deal means losing your deposit and you may also be liable for any damages suffered by the other party, such as the lost opportunity to sell to someone else, expenses arising from a delayed move, or the seller’s loss of deposit on another home intended for purchase. The legal remedy, called “Specific Performance” (making you complete the purchase), is an unlikely event, but a court could still hold you responsible for the entire purchase price, plus expenses and court costs.

For more information or questions, please call our office at 905-827-0809.