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Houses for sale in Ottawa

In Canada (some steps differ country to country, but generally it’s similar, at least in North America), there are 8 important steps you have to undergo.

As soon as the owner has accepted your offer, you should meet with your attorney and talk about all the obligations under the contract. One of the important points you should cover is the costs you will be facing concerning the closing procedures, including Land Transfer Tax, disbursements and legal fees.

UTILITIES

The attorney will also send letters to all the concerned municipal or regional utility departments, in order to confirm there are no arrears or outstanding charges for gas, water or hydro expenses. These letters also verify if the equipment on the property is rented or owned and they also advise the various utility departments of the scheduled closing date, the new owner’s name and the name of the vendor’s attorney. In these letters, it is also important to request details concerning the type of billing and if the billing is metered.

TAXES

Taxes is another important topic. You will have to provide a Tax Certificate, which will verify the amount of the current year’s taxes and any arrears and outstanding charges for the current year and any previous years.

BUILDING & ZONING

Your attorney will also send a letter to the Building and Zoning Department, along with a copy of survey for the property. The purpose of this is to reveal all the particulars of zoning by-laws and restrictions concerning the distance from the street and side and rear lines, construction type, lot and building areas, lot frontage and depth requirements and permitted uses.

TITLE & EXECUTION SEARCH

Another important part is to establish whether the vendor is the property owner and whether he has the right to convey the property, and that the property is not subject to any encumbrances, encroachments, easements, liens, agreements or mortgages that were not disclosed in the Agreement or Purchase and Sale. This is done by the appropriate division of the Land Registry Office, that does the Search of title to the property. Also an execution search is made in the appropriate Sheriff’s Office to verify that there are no executions against the vendor or prior owners of the property that would affect your title.

FINANCING

In the meantime, while your attorney is busy going through all the initial searches, you should arrange all the necessary financing details. The amount of financing you will qualify for and the amount you will require to complete the transaction should be clear already before you have signed the Agreement of Purchase and Sale. There are always some costs related to mortgage financing that you haven’t known about on the day of closing. Your attorney can advise you of these costs when the financial institution that you chose provides you with a Mortgage Commitment Letter.

BEFORE THE DAY OF CLOSING

You will also need a certified cheque to verify the balance of closing funds to your attorney. Bring this with you when you come to sign all the documents needed a few days before the closing.

CLOSING DAY

Yours and the vendor’s legal advisers will meet at the appropriate Land Registry Office at a time convenient to both of them. They should subsearch the title and complete the final execution searches. They will exchange documents, keys and cheques and your attorney will ensure all the necessary documents are registered. After the documents registration, the vendor is entitled to get the finances and you can get the keys from your attorney.

AFTER CLOSING

After closing your attorney will write a reporting letter to you certifying your title and explaining all aspects of the transaction. Then you are at last free to move in to your new house! Just make sure to check that all items that should be included in the purchase price, as specified in the Agreement of Purchase and Sale, are left on the property by the vendor. If you believe something is absent, contact your attorney immediately.

As you can see, this process is not so simple. This is the time, when reliable agent should provide you help and advice. Then your feeling won’t be spoiled by administrative inconveniences and troubles.

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Source by Elli Davis

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