The following is intended to provide a step-by-step guide to completing the real estate purchase. This information is not intended as a substitute for proper legal advice and the reader is advised to consult with a lawyer or notary to establish a proper course of action for your particular circumstance.
Note: The Buyer or the Buyer's Lawyer should carefully review and abide by all of the terms and conditions contained in the Contract of Purchase and Sale, paying special attention to how and when Deposits are to be handled.
Select a lawyer or notary to handle the conveyance of the subject property. If you do not have a lawyer or notary, or require assistance in finding one, a list of names can be provided for you to contact. Your lawyer or notary will undertake the following on your behalf:
In addition, your lawyer or notary will prepare a Statement of Adjustments in order to properly account for funds advanced as Deposits, allocate the Buyer's portion of property taxes owing or paid by the Seller, account for costs and fees to be paid by the Buyer, including Appraisal and Mortgage Administration fees, Conveyance fees, etc., and provide you with an amount that is required to complete the transaction.
Note: It is customary for the Buyer to accept responsibility for property taxes as of and for the day of Adjustment.
The Buyer is responsible to pay Property Transfer Tax (PTT). This charge will be shown on the Buyer's Statement of Adjustments as a Debit. The calculation of Property Transfer Tax is as follows:
Items excluded from Statements of Adjustment are usually paid for separartely by the Buyer. This includes where applicable, Furnace Oil, Propane Gas left in a storage container, and according to the quantity measured on the date of Possession.
Also, the Electric Meter will be read on the date of Possession and adjusted privately between the Seller and the Buyer.
Arrange for mortgage financing (if required). This normally involves a property appraisal, and may require a Survey Certificate to define property boundaries and to determine "lending value", or the maximum amount a lender will be willing to lend against the subject property, normally 75% of appraised value.
It is advantageous for Buyers to obtain pre-approval for their Mortgage from a Financial Institution prior to purchasing a property. In this way the Buyer has some assurance that the financing will go smoothly without last-minute panic, and the Buyer also benefits from the assurance of the lowest rate available locked in for a period of 60 days typically.
Note: Foreign Buyers should verify lending value with their Financial Institution or Lender as lending values carry restrictions and limitations for non-residents.
You should always allow adequate lead-time for lenders and appraisers to prepare, review and arrange financing options.
Arrange for a Survey Certificate if required by the Mortgage Financing Company (if any). Alternatively, many Financial Institutions and lawyers offer Title Insurance in lieu of a Survey Certificate to satisfy their lending requirements.
Arrange for Fire and Property/Liability Insurance. Insurance coverage should be arranged to take effect on the day before Risk passes from the Seller to the Buyer. On the standard form Contract of Purchase and Sale, risk passes to the Buyer at 12:01 AM on the date of Completion. If you do not have an Insurance Company, or require assistance in finding one, a list of names can be provided for you to contact.
Harmonized Sales Tax (HST)In February 2012, the BC Government announced the return to Provincial Sales Tax (PST) from the Harmonized Sales Tax (HST). Follow these links for details of the new tax programs from the Provincial Government which take effect between now and April 1, 2013.
Once all parties to the contract have signed their agreement to Completion, Adjustment and Possession dates, then and only then should the Buyer proceed to make arrangements to change billing names and addresses for Utilities and Services.
The Buyer will arrange for the following to take effect on Possession Date:
A relevant list of contacts and/or options can be provided to you to assist with the aforementioned actions, with the exception of Moving Companies where no references are provided.
Tom Davis, REALTOR®
Personal Real Estate Corporation
Royal LePage Sussex
604 787 1456