CLOSING
Completing your home purchase? It can take 15 to 90 days to complete all the steps involved in a home sale, depending on the complexity of the transaction. We will work closely with everyone involved in the transaction to help ensure that it moves ahead as smoothly as possible.
Here is a list of things we will do to help you: · Explain to you in detail all the steps that will occur and answer any questions you might have
What are the closing costs associated with buying? · Cost of mortgage · Insurance · Lawyer or Notary fees and expenses · Legal fees start at approximately $1,000 to $2,500 and go up from there depending on the transaction Taxes Property Transfer Tax This tax is levied by the provincial government and is applicable on all property purchases and amounts to 1% on the first $200,000, 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000, and 3% on the portion of the fair market value greater than $2,000,000, and if the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000
· Work with the Seller’s broker to see that they fulfil their responsibilities under the contract
· Attend the property inspection and review your detailed report
· Should you choose a strata property, we will have your strata documents professionally reviewed to ensure financials, reserve funds and supporting paperwork are in order
· Remove conditions and prepare paperwork to be sent off to your lawyer and mortgage broker
Other taxes
· Stay in touch with your lawyer’s office and conveyancing department to help coordinate their activities and keep the transaction moving forward
Only if applicable, Goods and Services Tax (GST) of 5%
What is GST? The Goods and Services Tax (GST) is a 5% federal and provincial tax which in many countries is a ‘hidden’ tax paid for by the manufacturer of goods or the provider of services. In Canada it is no longer ‘hidden’ but is a value added tax and, in the case of real estate, applies to the purchase of new construction and on the resale of commercial property. Potentially, homes that have been rented as short-term or nightly businesses are GST applicable and will be required to file an annual GST return. Buyers may choose to defer the GST by becoming a GST registrant at the time of closing if they are going to continue to rent their home on a commercial basis. If you choose not to use the property for nightly rental (commercial usage) and charge the usage to residential usage, then you will be required to self-assess and pay the GST. Please discuss your specifics with your accountant.
· Communicate with you on a regular basis so that you can stay informed and as worry-free as possible
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