Real Estate Transaction & Refinance

Whether you are buying or selling your property, or you are just doing a a "simple" equity take-out/refinancing transaction on an existing property, the process can become quite intimating for many people, especially if you are not sure what comes next.  To make things less daunting, we break the process into smaller steps so you know what to expect from us once you engage us to help you with your real estate transaction.  

BUYING A PROPERTy

• Upon subject removal, we will ask you or your real estate agent to send us a copy of the Contract of Purchase and Sale to review. The realtor’s office will also send us conveyancing reports detailing commission amounts (don't worry, commissions are paid by the Seller).
• Within 24-48 hours of reviewing your contract, one of our legal assistants will either call you or send you an introduction email to obtain some pertinent information in order for us to prepare the legal documents.  The information we may require includes: legal name, occupation, date of birth, SIN, whether you are using this as your principal residence or for investment purpose, if you want to register as Joint Tenants or Tenants in Common (for more than one owner). The information you provide will determine how the legal documents should be prepared, such as the Property Transfer Tax Application, GST Rebate Application, and Land Title Transfer form, for example.
• We will obtain and review the title search and tax certificate on the subject property.  This will determine how we negotiate undertakings with the Seller’s solicitor and making the appropriate adjustments on the property taxes and utilities, if applicable.
• If you are buying a condo or a townhouse (strata properties), we will also contact the strata management company to advise them of the upcoming change of ownership.  We also require, by law, to obtain a Form F Certificate of Payment from the strata to confirm there is no outstanding payments owe by the previous owner(s), and if there is, we will arrange payment at the time of title transfer. The Strata will also provide us with information on the strata fee and any moving fees, if applicable.
• If you are buying a newly built condo or townhouse, we will also require the information package provided by the Developer’s lawyer.  Usually this information package will be provided to us by the Developer's lawyer 1 to 3 weeks prior to completion. 
• Once we obtain all the information regarding taxes, utilities, commissions, strata fees, your mortgage, information package etc., we will work on putting together your file.
• When your file is ready, we will contact you to arrange a meeting, usually 1 to 3 business days before the completion date. At that time, we will also provide you with the balance to complete the purchase, so that you can then prepare a bank draft ahead of time before our meeting.
• During the meeting, the Notary will go through all the legal documents with you and you must sign in front of the Notary.  The meeting usually lasts about 30 minutes.
• In most cases, once you have met with the Notary, you do not need to return on the completion date.  We will handle the title transfer and mortgage registration on the completion date.  Once we finish the registration, we will advise you with the registration number, and at that point, you are the legal owner(s) of the property! Your realtor and the realty office will receive the registration number as well, and after that, they will make arrangement with you to pick up the key for your new home!

If you require financing (ie. if you're getting a mortgage)

• We will contact your mortgage broker or banker to ensure that the mortgage documents will be delivered to us (preferably) at least 5 business days prior to completion date.
• Some lenders will also require us to obtain either a title insurance policy or an up-to-date survey (applicable only to single houses). The purpose of a survey is to confirm the location of all the buildings on the land as well as the boundaries of the property. A survey also confirms the size of the lot, reveals any encroachments, and allows the purchaser to check with the municipality as to whether the property complies with the municipal setback requirements.  Title Insurance is generally accepted in lieu of, or in addition to, a Survey Certificate and may insure the Lender and the Owner in the event of defects in title that are not readily apparent.  If you wish to have further information on Title Insurance, please contact our office and we will give you the information to contact a title insurance provider so that you may discuss the limits of coverage with them.  The cost of a survey and title insurance policy vary depending on the location of the property and the amount of the mortgage.
• If you are buying a condo or a townhouse (or strata properties), we will obtain a Form B Information Certificate from the strata, which is a lender requirement. The strata will also notify us of the insurance company the building uses, and we will obtain an insurance binder from them, as a lender requirement.
• If you are buying a house, we will ask you for the insurance company you will be using so that we may obtain an insurance binder from them, as a lender requirement.

WHAT CAN YOU DO TO HELP US TO ENSURE A SMOOTH TRANSACTION

• Once you have decided to retain our services for your purchase, give our information to your realtor so that they may send us the contract and relevant information.
• Provide us with the information we request at your earliest convenience.
• Please also give our information to your mortgage broker or banker so that they may ensure the mortgage documents are delivered to us.  Hopefully you have arranged your financing in advance, but if you have not secured your financing, please have it done so as soon as possible.
• If you are out of town during the week leading up to the completion date, advise us in advance so that we can make appropriate arrangements with you.
• If you are buying a pre-sale, kindly forward us a copy of completion notice as soon as you receive it from the developer.  Please send a copy to your mortgage broker as well so they are aware of the funding date of the mortgage.

SELLING A PROPERTy

• Upon subject removal, we will ask you or your real estate agent to send us a copy of the Contract of Purchase and Sale to review. The realtor’s office will also send us conveyancing reports detailing commission amounts.
• We will obtain and review the title search on the subject property. If you currently have a mortgage on title, it will be on the title search.
• One of our legal assistants will either call you or send you an introduction email to obtain some pertinent information in order for us to prepare the legal documents. If there is current mortgage on title, we will ask you to email us a copy of your mortgage statement. We use the reference number from this statement to order a payout statement.
• The buyer’s legal representative will prepare documentation for the Seller. Once we receive this paperwork and the mortgage payout statement (if there is a current mortgage on title), we will work on putting together your file.
• When your file is ready, we will contact you to arrange a meeting, usually 1 to 3 business days before the completion date.
• During the meeting, the Notary will go through all the legal documents with you and you must sign in front of the Notary.  The meeting usually lasts about 30 minutes. We will be asking you if you would like to pick up the cheque for your sale proceeds, or if you would like it direct deposited, in which case please be ready with your bank account number.
• In most cases, once you have met with the Notary, you do not need to return on the completion date. Once we receive the sale proceeds from the other legal representative on the completion date, we will prepare a trust cheque for you. Once the trust cheque is ready, we will notify you to pick it up, or depending on which financial institution you bank with, we can direct deposit the funds for you as well.

WHAT CAN YOU DO TO HELP US TO ENSURE A SMOOTH TRANSACTION

• Provide us with the information we request at your earliest convenience.
• Once you have decided to retain our services for your purchase, give our information to your realtor so that they may send us the contract and relevant information.
• If you are out of town during the week leading up to the completion date, advise us in advance so that we can make appropriate arrangements with you.

REFINANCING OR EQUITY TAKE OUT ON A PROPERTy

• We will obtain and review the title search on the subject property. If you currently have a mortgage on title, it will be on the title search.
• One of our legal assistants will either call you or send you an introduction email to obtain some pertinent information in order for us to prepare the legal documents.  The information we may require includes your legal name and occupation, and if there is current mortgage on title, we will ask you to email us a copy of your mortgage statement. We use the reference number from this statement to order a payout statement.
• We will contact your mortgage broker or banker to ensure that the mortgage documents will be delivered to us (preferably) at least 5 business days prior to completion date.
• Some lenders will also require us to obtain either a title insurance policy or an up-to-date survey (applicable only to single houses). The purpose of a survey is to confirm the location of all the buildings on the land as well as the boundaries of the property. A survey also confirms the size of the lot, reveals any encroachments, and allows the purchaser to check with the municipality as to whether the property complies with the municipal setback requirements.  Title Insurance is generally accepted in lieu of, or in addition to, a Survey Certificate and may insure the Lender and the Owner in the event of defects in title that are not readily apparent.  If you wish to have further information on Title Insurance, please contact our office and we will give you the information to contact a title insurance provider so that you may discuss the limits of coverage with them.  The cost of a survey and title insurance policy vary depending on the location of the property and the amount of the mortgage.
• If you are refinancing a condo or a townhouse (or strata properties), we will obtain a Form B Information Certificate from the strata, as a lender requirement. The strata will also notify us of the insurance company the building uses, and we will obtain an insurance binder from them, as a lender requirement.
• If you are refinancing a house, we will ask you for the insurance company you will be using so that we may obtain an insurance binder from them, as a lender requirement.
• Once we obtain all the information regarding your mortgage, we will work on putting together your file.
• When your file is ready, we will contact you to arrange a meeting, usually 1-3 business days before the completion date. The legal fee and disbursements will be taken from the mortgage proceeds. If you are not advancing any funds at the time of completion, we will send you the payment amount to be paid by cheque or credit card.
• During the meeting, the Notary will go through all the legal documents with you and you must sign in front of the Notary.  The meeting usually lasts about 30 minutes.
• In most cases, once you have met with the Notary, you do not need to return on the completion date.  We will handle the mortgage registration on the completion date.  Once we finish the registration, we will advise you with the registration number, and at that point, the refinance is complete!
• If there is any excess funds from the refinance or equity take-out that is to be returned to you, you can pick up the trust cheque at our office, or depending on which financial institution you deal with, we can do direct deposit for you as well.

What can you do to help us to ensure a smooth transaction

• Provide us with the information we request at your earliest convenience. 
• Please give our information to your mortgage broker or banker so that they may ensure the mortgage documents are delivered to us.
• If you are out of town during the week leading up to the completion date, advise us in advance so that we can make appropriate arrangements with you.

 

Why do we need the information that we ask you?

legal name

For obvious reason, we need to ensure that the title on the Property is registered to you and not someone else.  We usually go by the legal name on your Driver's Licence, as that is the recognized legal name for the Province of British Columbia.  

Date of birth

This is only required when you are buying a property.  It is a mandatory field on the Property Transfer Tax Return.

Social insurance number

This is a mandatory field on the Property Transfer Tax Return, if you are a Canadian Citizen or a Permanent Resident.  The Ministry of Finance of British Columbia will also use your SIN to keep track of home ownership on all properties in B.C.

Canadian Citizen or PERMANENT RESIDENT

If you are a Canadian citizen or a permanent resident at the time of purchase, you are required only to pay the basic Property Transfer Tax.  You do not need to pay the Additional Property Transfer Tax, which is applicable to foreign buyers.

Occupation

A mandatory field that is required for the Buyer(s)/Transferee(s) on the Land Title Office transfer application Form A.

Purchase price

This is important as this will determine the amount of Property Transfer Tax, or if you qualify for the "First Time Home Buyer" or "Newly Built Home" exemption.  This will also determine if you qualify for any GST rebate, if you are buying a brand new property.

principal residence or investment property

How you use the property is another factor in determining if you are qualified for any Property Transfer Tax exemption or GST rebate.  Most of the government incentives are only applicable if you are using your property as your principal residence.