How to Buy/Sell a Property

- Tuesday 18, February 2020 -
So you want to buy/sell a property?
 
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PURCHASER decides to buy a house
VENDOR decides to sell their house
REALTOR gives vendor’s attorney and purchaser’s attorney offer to purchase
Both attorneys contact their respective clients to obtain personal information, discuss the sales process and retainer, and conduct a title and caveat* search
Vendor’s attorney provides the Purchaser’s attorney with a draft sales agreement and copy duplicate certificate of title
Purchaser’s attorney reviews the agreement, Purchaser signs and returns 3 copies of the agreement to the Vendor’s attorney along with a 10% deposit of the sales price, and half cost for agreement
Vendor’s attorney receives signed agreement
Vendor signs the agreements
Vendor’s attorney provides Purchaser’s attorney with a duly executed copy of the agreement, deposit receipt, copy title, and Statement of Account
Vendor’s attorney submits one signed agreement to Stamp Office for assessment of transfer tax (5% of sale price) and stamp duty (4% of sale price)
Vendor’s attorney receives notice of assessment and submits it to the Stamp Office along with the fully signed agreement, and sums for transfer tax and stamp duty so that sale agreement may be stamped.
 
 
Procedure for mortgage financing
 
 
Purchaser obtains Surveyor’s ID and Valuation Reports and submits to mortgage company
Vendor’s attorney provides Purchaser’s attorney with the following documents:- receipt for deposit, Statement of Account, signed sale Agreement, up-to-date certificate of payment for taxes, most recent water bill and receipt, maintenance and insurance coverage if applicable
Purchaser provides mortgage company with documents received from Vendor’s Attorney, Valuation and surveyor’s ID reports
If Purchaser is approved for the mortgage, the mortgage company will provide the vendor’s Attorney with a Letter of Undertaking on behalf of the Purchaser.
 
 
Procedure for cash financing
 
 
Purchaser’s Attorney verifies and receives source of funds and pays the balance to Vendor’s Attorney
After balance is paid by cash or confirmed by Letter of Undertaking, the Vendor’s Attorney will send the instrument of Transfer to the Purchaser’s Attorney to have the purchaser sign and return same to Vendor’s Attorney
Vendor’s Attorney will add together the deposit, sums anticipated from letter of undertaking and any further payments made by the Purchaser to see if there is a shortfall
Once shortfall is paid and the signed Instrument of Transfer has been received, the Vendor’s Attorney will send the Instrument of Transfer to the Vendor for his signature
Vendor’s Attorney receives signed Instrument of Transfer from Vendor and submit instrument to Stamp Office along with the stamped agreement and transfer tax certificate for cross stamping
Vendor’s Attorney receives cross stamped Instrument of Transfer and submits to mortgage company (if financing is by mortgage). If financing is by cash, vendor’s Attorney lodges the following documents to the Titles Office:
 
 
-Cross Stamped Instrument of Transfer
-Transfer Tax certificate
-Duplicate certificate of Title
-Registration Fees

 

Note: if purchase is by way of mortgage, the purchaser will sign a mortgage deed which will be submitted along with the above documents along with an application for the mortgage company to be registered as the proprietor of a mortgage.
 
•Title is registered and Vendor’s Attorney sends copy of endorsed title to Purchaser’s Attorney (if cash transaction), or requests copy title from mortgage company (if mortgage)