What to Expect when Purchasing a Home

In the event that you use our services to purchase a home, you can in general expect the following to happen:

Upon receiving a copy of your offer, we will contact you to confirm your name, address and contact information, and our retainer. Following waiver of any conditions in your purchase agreement, we then make arrangements to conduct the title search for your property along with any required off title searches (e.g. building inspection, zoning, taxes, etc.), or we may have you consider title insurance if it is more economical and expedient. If we run across anything unusual during the search process, we will contact you to discuss the issues and to review the options for dealing with the matter and to seek your instructions for proceeding further.

Also during this period, we liaise with your mortgage company or bank, obtaining their instructions for preparing your purchase mortgage, and we will also advise the vendor’s lawyer as to the manner in which you are taking title to the new property.

We usually contact you a week before closing. At that time, it is our intention to provide you with an estimate of the dollar amount required from you to close the transaction and to set up an appointment a day or two before closing to meet to review and sign all of the closing documentation.

Clients often attempt on their own to estimate their cash needs for closing. When doing so, don’t forget to take into account the amounts (if any) which your mortgage lender may be deducting from your mortgage advance – e.g. If you are mortgaging for more than 80% of the value of your home, keep in mind that your lender will be deducting Provincial Sales Tax on the amount of your CMHC fee along with the application fee of $165.00.

There will also be adjustments for property taxes as well as common expenses in the case of a condominium purchase. We will need you to provide us with proof of your insurance coverage on the new home. Your insurance agent is usually pleased to provide us by fax with an insurance binder confirming the coverage in place for closing. Please note also that your agent will need the name and address of your mortgage lender to show their interest on the insurance policy. You must also make certain that you have met any specific conditions which your lender has set out in their mortgage offer to you.

DISCLAIMER: The information provided herein is for general purposes only, and is not legal advice. This information relates only to the laws of the Province of Ontario and related laws of Canada applicable in Ontario, and is believed to be correct as at the date it was assembled, but may contain inadvertent errors or inaccuracies and may be out of date when accessed. Cohen Highley LLP disclaims any and all liability and accepts no legal responsibility relating to any use or reliance on this information. Use or reliance on this information does not establish any form of lawyer-client relationship with Cohen Highley LLP, and any such alleged relationship is hereby disclaimed. Legal advice depends on facts and circumstances, and should only be obtained through direct personal consultation with a licensed legal professional. This information is protected by Canadian and international copyright laws and may not be reproduced, transmitted or otherwise disseminated without the express written consent of Cohen Highley LLP.