| Having good title means that you own the property without anyone else having a claim to it.
Real estate transactions are based on a flat fee, plus disbursements. Included in the purchase of a home, may be the preparation of a mortgage, or bridge financing. A sale may include discharging a mortgage on the property you are selling. Beware that some lawyers charge separately for mortgages, be sure to ask whether the quote you are seeking includes a mortgage (purchase) and/or a discharge (sale).
Lawyers' fees never include disbursements. Disbursements are costs incurred by your lawyer in the completion of your transaction. For example, in a purchase of a home, disbursements may include the following:
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Title Search
A search on the property, ensuring that you will be getting the property free and clear of any claims.
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Utility Search
Water, Gas, sometimes hydro (to make sure that the previous owners paid their bills to date).
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Land Transfer Tax
Government Tax on transfer of property. You may be eligible for a rebate of up to $2000 if you are a first time homebuyer and you are buying a newly constructed home.
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HST on Lawyers' Fees
Work a lawyer does for you is a service which of course is subject to HST.
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Search of Executions and Subsearch
Search on all parties to make sure they have no outstanding judgments against them, and a property search from the date of the title search to closing date.
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Tax Search
To make sure that all outstanding property taxes have been paid by owners until date of closing.
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Registration Fees
Every document that needs to be registered costs $70 to register, depending on where you live: (1) a deed, in the case of a purchase; (2) a mortgage, if there is one; (3) a discharge of a mortgage in the case of a sale; (4) other - there may be other documents that need to be registered in more complicated transactions.
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Law Society Levy on Real Estate Transactions
The law society imposes a charge for every real estate transaction conducted in Ontario.Currently the fee is $65.00. |
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This is not an exhaustive list, but it is a guideline as to what expenses you can expect as part of your closing costs. |
