Ontario Real Estate Lawyer https://realestatelawyerlondonontario.com London, Ontario Real Estate and Estate Planning Lawyer Mon, 03 Dec 2018 15:06:24 +0000 en-US hourly 1 https://wordpress.org/?v=5.1.1 https://realestatelawyerlondonontario.com/wp-content/uploads/2018/08/cropped-27858095_1519354364849105_6904807337425425121_n-32x32.png Ontario Real Estate Lawyer https://realestatelawyerlondonontario.com 32 32 Real Estate Closing Costs: The Definitive Guide https://realestatelawyerlondonontario.com/real-estate-closing-costs/ https://realestatelawyerlondonontario.com/real-estate-closing-costs/#respond Mon, 03 Dec 2018 15:06:24 +0000 https://realestatelawyerlondonontario.com/?p=934 Get answers to all your real estate closing costs here! Lakin Afolabi & the London Ontario Real Estate Lawyer team explain the fees associated with closing.

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What are real estate closing costs?

Real estate closing costs are the legal and administrative costs you will need to pay when your house closes. Closing costs range from 2% to 5% of your home’s purchase price and selling price. If you bought a home at this price, $164,123, you would have to set aside between $2,462 (2 per cent) and $6,565 (5 per cent) for your closing costs – and that’s on top of your down payment. In addition to closing costs, there are other expenses and/or events that may require a cash outlay before, on or after your house closes.

How much are lawyer’s fees for buying a house?

Legal fees depend on how complicated the purchase transaction is, as well as the lawyer’s expertise. Most of the time, there will be a flat fee that depends on the type of home (detached, condo, etc.) and then you’ll pay for disbursements (faxing, photocopying, etc.) and registration fees. The cost will also depend on whether you’re buying, selling or refinancing. Expect to pay around $500- $750 excluding disbursements.

What are the closing fees for a buyer?

Closing fees are the extra expenses that buyers and sellers pay on top of the purchase price at settlement of a real estate transaction. Closing costs include mortgage origination fees, discount points, appraisal fees, and more. Average closing costs on the median home sales price of $230,000 are 2 percent to 5 percent. The buyer’s closing costs usually include loan origination fees, discount points, appraisal fees and more.

What are the typical closing costs for the seller, can I deduct closing costs?

Real estate closing costs for sellers vary according to where you live, but as the seller you can expect to pay anywhere from 2 percent to 5 percent of the home’s sales price at settlement. This won’t be cash out of your pocket, rather it will be deducted from the profit on your home — unless you are selling with very low equity. In which case, you may need to bring a little cash to the table.

How much is closing fee for a house, how to calculate closing costs, real estate buyer’s closing costs?

If you bought your home, you probably paid settlement or closing costs in addition to the contract price. These costs are divided between you and the seller according to the sales contract, local custom, or understanding of the parties. If you built your home, you probably paid these costs when you bought the land or settled on your mortgage. The only settlement or closing costs you can deduct are home mortgage interest and certain real estate taxes. You deduct them in the year you buy your home if you itemize your deductions. You can add certain other settlement or closing costs to the basis of your home.

How much to estimate for closing costs, and who typically pays closing costs?

In a closing, both buyers and sellers have costs. Home buyers pay between about 2 to 5 percent of the purchase price in closing fees but are faced with more line-item expenses than the seller. Sellers tend to pay more at closing, as they are responsible for paying the real estate commission. Sellers can expect to pay between about 2 to 5 percent of the sale price in closing costs, though this varies by location.

Sellers pay the commission

The commission is based on a percentage of the total sale price, so it tends to be the biggest fee paid at closing. In addition to the real estate commission, the seller may have to pay the balance of their property taxes, if they haven’t done so already, as well as any prorated homeowners association dues.

Buyers have more line-item expenses

Most buyers are getting loans to make the purchase, and many of the charges stem from the loan. Typically, buyers getting a loan will see some of the following costs at closing:

  • Appraisal fee
  • Prepaid interest
  • Mortgage Insurance
  • Home Inspection fee
  • Interest Adjustment (IA)
  • Credit report fee
  • Bank processing fee
  • Property Tax and Prepaid Utilities Adjustments

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How Much Do Real Estate Lawyers Charge? https://realestatelawyerlondonontario.com/how-much-do-real-estate-lawyers-charge/ https://realestatelawyerlondonontario.com/how-much-do-real-estate-lawyers-charge/#respond Fri, 26 Oct 2018 19:30:27 +0000 https://realestatelawyerlondonontario.com/?p=927 Real estate lawyers' fees can seem overly complicated. Use this handy guide to get your bearings and learn how much real estate lawyers charge!

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How Much Do Real Estate Lawyers Charge for Buying A House?

A lawyer will charge a fee for their professional services involved in drafting the title deed, preparing the mortgage, and conducting the various searches. In most cases, lawyers will charge anywhere from $500 to $750 for this portion of the work. But on top of these fees there are also disbursement costs. Disbursements are expenses a lawyer incurred on a client’s behalf. In other words, they are the actual out-of-pocket expenses which your lawyer incurs on your behalf during the course of your transaction.

The following are the most common disbursements in a residential real estate purchase transaction:

Land Transfer Tax ($)

Whenever a person acquires land, they are required to pay a Land Transfer Tax to the province of Ontario. This tax is based on the purchase price of the home. First time homebuyers may be eligible for a Land Transfer Tax rebate of up to $4,000.

HST (New Builds and Special Circumstances Only)

All newly built homes purchased from builders will be subject to harmonized sales tax (HST). However, if the home you are purchasing is going to be your primary residence, you could be eligible for a federal tax rebate of up to $6,300 and a provincial tax rebate of up to $24,000. Some homebuilders automatically deduct this rebate from the purchase price of your home. If your builder does not offer this, you have two years from the date of purchase to apply for a rebate from the Canada Revenue Agency. Most resale homes will not have HST applied to the purchase price.

Status Certificate ($100.00)

A status certificate contains important information about a condominium unit you are purchasing and its associated condominium corporation. This document tells you whether the current property owner is up to date with condo fee payments, the financial status of a condominium corporation, as well as the condo declaration, bylaws, rules and restrictions.

Title Search ($150.00 – $300.00 + HST)

A title search is the process of retrieving documents related to the property you are buying. The search ensures that the seller actually has the right to sell the property, and checks if there are any encumbrances on the property. Encumbrances are claims on the property that would prevent its sale. Common examples of encumbrances are mortgages and liens.

Many law firms, Lakin Afolabi Law included, use a title search agent for this process. Since these agents are experts in title searching, they are much more efficient than your average lawyer, resulting in lower costs.

Title Insurance ($150.00 – $400.00 +HST)

Title insurance is a unique form of insurance separate from your general homeowner’s insurance policy. It ensures you legally own your home and covers for losses against undetected or unknown title defects. There are a few title insurance agencies in Ontario. A lawyer can arrange title insurance for you as part of your transaction.

Property Tax Certificate ($56.00)

At the time of a sale, the lawyer for the buyer must confirm that local taxes have been paid up to date. If they are, a Tax Certificate is issued, from which any adjustments can be made – usually requiring the buyer to compensate the seller for any prepaid taxes.

Executions Search ($11.60 per person)

Executions searches are performed on every person selling a property (including businesses or corporations) and on all purchasers who will be obtaining a mortgage. An executions search shows if a person has a writ issued against them. A writ is an order by a court or another statutory authority that allows a creditor to have a person’s assets or property seized and sold to satisfy an unpaid debt.

Registration Fees ($75.63 per document)

To complete your purchase, a deed in your name is registered in Ontario’s land registration system. If you have a mortgage, that mortgage is also registered as a separate document in the land registration system.

Software Charges ($25.00 + HST per transaction)

Most firms use specialized real estate software to help them keep the transaction and all the related documents organized. Lakin Afolabi Law uses Do Process Software’s Conveyancer, which charges for each transaction done through the program.

Electronic Mortgage Processing Fee ($25.00 + HST per Mortgage)

Prior to electronic mortgage processing, hard copies of mortgage paperwork had to be delivered to lenders. Electronic mortgage processing has streamlined this process.

Bank Expenses ($10.00 – $15.00 per transaction)

Lawyers use either certified cheques, bank drafts or wire transfers to ensure the transfer of money is secure. These types of transfers are subject to additional banking fees.

General Office Expenses and Courier Expenses ($0)

Many lawyers will charge for general office and courier expenses such as printing and photocopying of documents. Lakin Afolabi Law does not charge for these expenses.

How Much Do Real Estate Lawyers Charge for Selling A House?

When selling a home, we often encounter HST, Subsearch of Title, Property Tax Certificate, Registration Fees, Administration fee by mortgagee to discharge existing mortgage, courier charges, Real Estate Commission and other fees and costs. They charge anywhere from $495 to $750 for this portion of the work.

How Much Do Real Estate Lawyers Make On The Transaction?

A real estate lawyer can be incredibly important when a transaction has any level of stress points. Depending on whether you are a buyer or a seller it can be a really good idea to get your ducks in order by having a real estate lawyer for your transaction. Most local real estate lawyers have a flat fee for typical residential real estate purchase and sale transactions. For purchase, they charge anywhere from $500 to $750 and for sale, they charge anywhere from $495 to $750 for the portion of the work.

How Much Do Real Estate Lawyers Charge in Ontario?

These are questions that our real estate clients ask us all the time. Although the rates vary from lawyer to lawyer and from property to property depending on the complexity of the transaction and other things.

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What Do Real Estate Lawyers Do? https://realestatelawyerlondonontario.com/what-do-real-estate-lawyers-do/ https://realestatelawyerlondonontario.com/what-do-real-estate-lawyers-do/#respond Fri, 28 Sep 2018 19:01:53 +0000 https://realestatelawyerlondonontario.com/?p=920 Whether you are buying, selling or refinancing your home, you will be working with your real estate lawyer a lot - but what exactly does he do?

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When Do You Need A Real Estate Lawyer?

Whether you are buying, selling or refinancing your home, one of the most important people you will be working with is your real estate lawyer.

No matter which process you are going through, you will need a real estate lawyer whose overall responsibility is to make sure your paperwork is filed, your rights are protected, and your transaction goes through.

Here is a breakdown of their other duties, and answers to some of the most frequently asked questions about working with real estate lawyers.

Do I Need A Real Estate Lawyer to Buy A House?

If you are buying a home, you will want to start working with a real estate lawyer as soon as you are ready to sign the Agreement of Purchase and Sale.

Thereafter, your lawyer’s job is to conduct a title search, get title insurance in place, register the home in your name, draw up a Statement of Adjustments, and facilitate the financial transactions on closing day. Oh! and then he/she will give you the keys to your new home!

The following describes the main steps your lawyer will take:

  1. Review of the Agreement of Purchase and Sale and Status Certificate where applicable and note any deadlines to insure the deal proceeds as scheduled;
  2. Arrange for and review the title search;
  3. Request other required searches – tax arrears, common expenses, zoning, work orders, etc.;
  4. Obtain information regarding satisfaction of conditions/deliverables (i.e. invoices to show repair work completed, clean water test obtained, septic permit);
  5. Prepare and send requisition letter and closing documents required from Sellers and Sellers counsel on or before the requisition date;
  6. Request and obtain title insurance or provide an opinion on title;
  7. Prepare transfer for review and completion by seller’s counsel;
  8. Prepare draft Charge as instructed by Lender for review and execution by client;
  9. Attend with client for review and execution of closing documents and obtain remaining closing funds from client;
  10. Enter escrow closing arrangement with the lawyer for the sellers;
  11. Receive mortgage funds and rest of closing funds in trust;
  12. Review Statement of Adjustments and prepare certified cheques for sellers as directed by counsel and in keeping with the Agreement of Purchase and Sale;
  13. Receive keys and deliver to client once released, release closing funds;
  14. Register Transfer and Charge once released from escrow;
  15. Report to buyer clients;
  16. Report to Lender;
  17. Advise municipality of change in ownership;
  18. and Follow-up with counsel for sellers to ensure that discharge of discharge of previous charge has been registered.

Do I Need A Real Estate Lawyer to Sell A House?

When you decide to sell your home, your real estate lawyer will do another title search on your home to make sure there are no defects.

Your lawyer will also draft the deed of the home for the buyer, calculate any closing costs you have to pay and draft a Statement of Adjustments for you.

On closing day, your lawyer will facilitate the financial transaction and hand you a cheque for what is leftover, after paying off anything you owed on your mortgage, your real estate agent’s fees, legal fees, etc.

The following describes the main steps your lawyer will take:

  1. Review the Agreement of Purchase and Sale and note any deadlines to insure the deal proceeds as scheduled;
  2. Obtain and review parcel register;
  3. Obtain property tax information from client or from City;
  4. Receive, review and respond to requisitions, which might include following up with clients about things the clients are supposed to look after before closing;
  5. Provide an undertaking to the buyers and their lawyer to pay out existing encumbrances (as provided for and agreed to in the typical Agreement of Purchase and Sale);
  6. Obtain mortgage payout statement if there is a mortgage;
  7. Review draft transfer and complete missing information;
  8. Attend with the clients for review and execution of closing documents and obtain keys from clients to be held in escrow;
  9. Prepare and deliver Statement of Adjustments to the lawyer for the buyers;
  10. Enter escrow closing arrangement with the lawyer for the buyers;
  11. Deliver closing package to the lawyer for the buyers, including keys;
  12. Receive closing funds in escrow and in trust (to be released only according to the terms of the escrow arrangement);
  13. Review and release transfer;
  14. Attend at bank to prepare certified cheques from Trust Account to pay out existing Charge and any other liens or encumbrances required to be discharged on closing;
  15. Attend to payment of existing Charge so as to discharge the existing Charge (or mortgage) as well as of any other liens or encumbrances required to be paid;
  16. Prepare payment for and deliver payment of real estate commissions owed;
  17. Report to client;
  18. Attend to or ensure discharge of existing mortgage is registered;
  19. and Advise municipality of change in ownership.

Why Should I Hire A Real Estate Lawyer?

The biggest reason to hire a real estate lawyer is to ensure that title to the home you purchase is clear of defects and properly transferred to your name and that all documents, including those in connection with the mortgage loan are correct and accurately reflect your understanding of the terms of the loan, including interest rate and repayment terms.

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Why Hire An Estate Planning Lawyer? https://realestatelawyerlondonontario.com/why-hire-an-estate-planning-lawyer/ https://realestatelawyerlondonontario.com/why-hire-an-estate-planning-lawyer/#respond Thu, 20 Sep 2018 21:55:48 +0000 https://realestatelawyerlondonontario.com/?p=709 Estate planning is something everyone should think about. Learn more about what estate planning is and why you should hire an estate planning lawyer!

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Estate planning is something everyone should think about.

It sets into place the legal documents that can protect you and your family during your lifetime and beyond. What is most important is to ensure that your estate planning is done correctly and meets the requirements of the law. That’s why you need to hire an estate planning lawyer.

What is an Estate Planning Lawyer?

First of all, what is an estate planning lawyer? An estate planning attorney is a lawyer with the qualifications, education, and experience to advise clients on how to determine the specific management distribution of their estate should they become incapacitated or die.

What does an Estate Planning Lawyer Do?

Based on your goals and desires, an estate planning lawyer can advise you on how best to protect and distribute your estate, and aid in the creation of the supporting legal documents that will carry out your wishes. Items they can help with include:

  • Wills
  • Trusts
  • Durable, Financial, and Medical Powers of Attorney:
  • Living Will
  • Guardianship
  • Designation of beneficiaries
  • Estate taxes
  • Avoidance of probate

Estate planning lawyers work to help you craft the necessary documents. They can also be called upon for legal advice regarding your estate, to work on your behalf in the event of a dispute, and to help with the distribution of your estate after you pass away.

How Hiring an Estate Planning Lawyer Can Help Navigate Tricky Situations

Some estates involve complex family or financial situations including:

  •         Multiple marriages
  •         Divorces or death of a spouse
  •         Multiple real estate holdings
  •         Minor children
  •         Disabled family members
  •         Charitable donations
  •         Substantial assets

With these types of tricky situations, you need an experienced estate planning attorney to help navigate the complexities and create the appropriate documents that will protect your assets for your beneficiaries.

Estate Planning Should Be Done at Any Age

Estate planning isn’t just for the elderly, and it’s not just for the wealthy.

Everyone should create and maintain an estate plan.

This will not only lay out your wishes for your future care should you become unable to make decisions on your own due to illness or accident, it will ensure that the people you choose will receive the parts of the estate you desire them to have. Having a will or trust will also ensure that your assets will pass smoothly to your decedents, and not remain a decision of the court system, which can be a lengthy and expensive process.

Why Hire an Estate Planning Attorney?

The biggest reason to hire an estate planning attorney is to ensure that your legal documents are created correctly as to be enforceable. A missed signature or improper designation can render a document invalid. Knowing your estate is securely planned for will give you and your family peace of mind.

Call Ontario Real Estate Lawyer

When you need assistance creating your estate plan, contact the estate planning lawyers of Ontario Real Estate Lawyer Professional Corporation.

We can provide legal counsel, aid in drawing up legal documents, and assist in the distribution of your estate. Contact us today or book your own appointment to set your initial consultation.

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