Real Estate
The process of homebuying in Ontario involves finding a suitable property, negotiating and signing an offer, conducting due diligence, preparing and reviewing the closing documents, and attending the closing meeting. The costs involved in buying or selling a home in Ontario include land transfer tax, home inspection, property appraisal, legal fees, title insurance, fire insurance, registration fees, and real estate commission.
The steps of a real estate transaction in Ontario include
- Establishing the client-lawyer relationship and discussing the different types of representation
- Conducting a title search and ordering title insurance
- Verifying the identity, capacity, and authority of the parties
- Drafting, reviewing, and registering the legal documents
- Holding and disbursing the funds and documents in trust
- Resolving any issues or disputes that may arise
The steps in a real estate closing in Ontario are
1
Find a suitable property and make an offer
to purchase
3
Conduct a title search, a home inspection, and a property appraisal to ensure there are no issues or defects with the property
5
Prepare and review the closing documents, such as the transfer of land, the statement of adjustments, and the mortgage documents
2
Hire a lawyer and a real estate agent to assist you with the legal and practical aspects of the transaction
4
Arrange for financing and insurance for the property
6
Attend the closing meeting, where you will exchange the keys, the funds, and the documents with the seller and finalize the transaction
What are the cost of a real estate transaction in Ontario?
The costs involved in a real estate transaction in Ontario can vary depending on the type and value of the property, the terms of the contract, and the services of the professionals involved. Some of the common costs are
Land transfer tax
This is a tax that is paid by the buyer of the property based on the purchase price. The provincial government imposes a land transfer tax, and some municipalities, such as Toronto, also charge their own land transfer tax. The tax rate is calculated as a percentage of the purchase price, and it can range from 0.5% to 2.5%.
Property appraisal
This is a service that is performed by a certified appraiser to determine the market value of the property. A property appraisal is usually required by the lender to ensure that the loan amount is appropriate.
Home inspection
This is a service that is performed by a qualified inspector to check the condition and quality of the property. A home inspection can reveal any potential problems or defects with the property, such as structural issues, mould, or electrical problems.
Title insurance
This is a type of insurance that protects the buyer and the lender from any losses or damages that may result from defects or errors in the title of the property, such as liens, encumbrances, fraud, or forgery.