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[BUYING AND SELLING REAL ESTATE IN CANADA - ONTARIO]
that are due or paid by the seller prior to closing. It includes all costs up to the day before closing for the seller, and the day of closing for the buyer. An undertaking from the buyer and seller to readjust the statement of adjustments after closing for any errors discovered post-closing or for a recalculation of realty taxes once the final tax bill is issued post-closing is commonly included in the closing documents. 3. Document Registration Agreement ("DRA") – To accommodate electronic registration, the DRA outlines the terms of escrow under which the transaction is completed, including the transfer of funds and registration of documents. 4. bill of sale – to be delivered when chattels are being transferred to the buyer along with buildings and land; 5. vendor take-back mortgage, if applicable; 6. vendor direction as to funds; 7. vendor declaration of possession; 8. buyer's direction re: title; 9. vendor's certificate or statutory declaration pursuant to s. 116 of the Income Tax Act ; Commercial transactions would also use the above-noted documents, but may also require the following documents, and other documents specific to the terms of the transaction: 10. assignment and assumption of leases; 11. notice and direction to tenants; 12. assignment and assumption of warranties and guarantees;
13. assignment and assumption of contracts; 14. mortgage assumption agreement, if applicable; 15. tenant estoppel certificates (pre- closing), if applicable; 16. general conveyance; 17. purchaser's covenant to self-assess, pay HST and indemnify vendor. XV. ANNUAL PROPERTY COSTS Property owners in Ontario can expect to incur the following annual costs: 1. Realty taxes – Each property's value is assessed for municipal tax purposes under the Assessment Act, and the local municipality determines the tax rates to be paid based on the assessed value. Realty taxes can be comprised of local and regional amounts, school amounts, and special assessments. 2. Insurance - Not mandatory but is typically obtained to cover property damage and liability. If the property has a mortgage, the lender will require insurance as an ongoing condition of the loan. 3. Strata fees if a condominium; and 4. Operating expenses, such as utilities, maintenance and repairs. XVI. PROHIBITION ON THE PURCHASE OF RESIDENTIAL PROPERTY BY NON- CANADIANS ACT Introduced in the 2022 federal budget, the Prohibition on the Purchase of Residential Property by Non-Canadians Act was passed by the Parliament of Canada on June 23, 2022, and came into effect on January 1, 2023, along with the Prohibition on the
ILN Real Estate Group – Buying and Selling Real Estate Series
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