NOTES TO BUYERS
Buyers don't want surprises when they budget to buy a property. This information sheet is designed to give buyers an opportunity to better estimate the total cost of legal fees, legal disbursements and adjustments (commonly referred to as "closing costs") they will experience.
Metro Law Office's schedule of legal fees, legal disbursements and applicable taxes are set out in the table on the reverse. Eighty percent of our clients will pay the costs set out in this table. About 20% of our clients will face additional charges for extra work caused by delay, changing circumstances, rushed closings, multiple sign-ups, out of town parties and other complications not of Metro Law Office's making. All of our clients will also have to pay applicable third party adjustments. Adjustments include monies paid to fairly apportion the payment of property taxes, utilities, realtor commissions and other costs shared between the buyer and seller, government taxes and fees, and costs levied by mortgage lenders, property managers, insurance agents and strata corporations. The following are the most common adjustment items:
GOVERNMENT TAXES AND FEES Land Title Office registration fees: transfer or mortgage: $66.00; mortgage discharge: $28.00 • Property Transfer Tax: 1% on first $200,000.00 of purchase price and 2% on remainder unless qualifying as first time buyer (see reverse) or transfer to spouse or child 6% GST on new or commercial properties - less 36% of GST if a residential rebate is available
STRATA RELATED COSTS Strata Form F Certificate of Payment: $16.00 and up (required by Land Title Office) • Strata Form B Information Certificate: $37.00 and up (required by Lender)
•
Move-in or Move-out fees: $50.00 and up (required by Strata Corporation)
LENDER RELATED COSTS Title Insurance (if required by Lender): $150.00 and up • Survey Certificate (instead of Title Insurance): $225.00 and up. Fire Insurance Certificate: $35.00 or less. • Lender deductions including: interest adjustment fee. CMHC application fee, CMHC insurance premium, commitment fee, appraisal fee, courier fee or administration fee • paying out credit card or creditor accounts (if required by Lender): $50.00 per payout
WHAT METRO LAW OFFICE FEES INCLUDE:
Reviewing and advising you with respect to your Contract of Purchase and Sale; Searching the title to the property and ensuring that any financial charges are discharged by the seller or, if agreed, are properly assumed by you; Ascertaining the status of property taxes and utilities on the property; Preparing a statement of adjustments showing the balance payable by you on completion; Attending to the preparation, execution and filing of all necessary documents required to complete your purchase and/or mortgage; Attending to registration of all documents and confirming that the title to the property has been accepted for registration at the land title office free of all financial and other encumbrances except your new mortgage and those that you have agreed to - however, we cannot provide you with protection against any unregistered claims that may be advanced by governmental agencies in priority to your interests.
WHAT METRO LAW OFFICE FEES DO NOT INCLUDE: Drafting or amending a Contract or Purchase and Sale; Ascertaining municipal zoning, bylaw or permit requirements or the property's compliance therewith: Providing you with copies of all the encumbrances on title or a land title plan of the property; Costs of survey certificate, title insurance, fire insurance certificate, or paying out credit card or creditor accounts; Costs of obtaining Form B, Form F, copies of bylaws, rules, regulations, minutes and strata plans associated with strata-titled propeities; maintaining, builders lien, deficiency or Income Tax Act hold backs; Negotiating holdbacks or delayed completion dates; Guaranteeing that the structures you are purchasing are legally located on the property or otherwise meet municipal requirements (Title Insurance is available for this purpose); Guaranteeing the legality of rental accommodation or the quality or environmental status of the property; Arranging insurance coverage.
April 12,2007
REAL ESTATE INFO SHEET
Whether you are buying or selling real estate, you should have a properly drafted and signed Contract of Purchase and Sale. We will review your realtor-prepared contract - or draft one for you - ensuring that it is a legal and binding contract and that:
• any subject conditions for the benefit of the buyer (with respect to obtaining financing or carrying out due diligence) have been properly declared waived or satisfied after the buyer has received an unconditional financing commitment and after building inspectors, strata corporations, realtors and others have provided adequate assurances to the buyer; for strata-titled homes - the buyer receives copies of all bylaws, rules and regulations of the strata corporation, two years worth of Strata Council minutes and a Form B Information Certificate before removing subject to clauses; for newly constructed homes - the contract should describe who pays the GST, how the 36% GST rebate is handled (maximum of $8,750), how builders lien holdbacks, disclosure requirements, inspections, deficiencies and construction delays are addressed;
for those seeking a Property Transfer Tax First Time Home Buyers Exemption - you are a Canadian citizen or permanent resident who has lived in BC for at least 12 months and have never owned a home anywhere before, that your purchase price does not exceed $375,000 and that you are taking a mortgage with a term of not less than one year and for a principal amount of not less than 70% of the purchase price;
•
•
•
you make appropriate enquiries with the municipality to ensure that the zoning of the property meets your needs and that it has no building, bylaw or fire code violations outstanding.
Estimated Legal Costs:
The three lawyers at Metro Law Office have over 60 years experience in acting for buyers, sellers, developers and mortgage lenders in real estate transactions. Our legal fees are as low as most notaries, yet, unlike notaries, we can apply to court to protect your interests if things go wrong. The table below sets out the legal fees, legal disbursements and related taxes that you should expect for your transaction. If your transaction is of a rush nature (closing in less than 7 business days), or includes complications or delays not of our making we will charge you for extra work at $50.00 per quarter hour. Read the reverse to review the adjustments and other closing costs that you will have to budget for.
Item Legal Fees Disbursements PST&GST Total
Home Sale
Home Sale with Mortgage
Home Purchase Home Purchase with Mortgage
Mortgage Alone
Discharge Mortgage or Charge Surcharge for Flips/Assignments Transfer to Executor, Spouse, Child $225.00 $123.35 $36.65 $385.00
Barristers & Solicitors Suite 1141 - 4700 Kingsway, Burnaby, BC, V5H 4M1
TEL: 604-434-3100
www.mctrolaw.ca
METRO LAW OFFICE LLP
FAX: 604-434-5004