Ready to buy a new house? Kathryn Borgatti, Associate General Counsel for Mattamy Homes, outlines some of the key questions to ask your lawyer before this all-important purchase.

1. What do you charge and what am I getting for this service?
Not all lawyers charge the same, although generally legal fees for closing a home purchase are in the same ballpark, says Borgatti. “Get two or three quotes and make sure you understand the services they plan to provide for this fee.”

2. How many times should we meet? 
Borgatti suggests at least two meetings. Visit your lawyer a week or two ahead to determine the scope of what is happening, to get things in order and determine your balance due on closing. You will then meet again on closing day or the day before. 

3. Can you explain how HST might affect my purchase? 
New homebuyers in Ontario are charged 13 per cent HST on their purchase. Typically, the vendor will include the HST in the purchase price and the purchaser will accept that the HST rebate is typically assigned to the vendor. The purchaser can be disallowed this rebate, however, if the purchaser (or a permitted family member) does not plan to reside in the home.

4. Review lawyer’s fees and disbursements. 
The fee is the time a lawyer will spend doing things like your title search and meeting with you. Disbursements are the hard costs: preparing the file, time spent by a law clerk, travel, photocopying and incidentals. Your lawyer should clearly outline both.

5. What is the cost of title insurance? 
Title insurance protects the homeowner against things like title defects, fraud, forgery and zoning noncompliance. Buy it once and it protects you as long as you own your home. “Although you don’t have to buy it, almost all homebuyers do because it can protect you against a number of issues that may arise,” says Borgatti.

6. What is a Tarion warranty? 
Anyone planning to build a new home in Ontario must be registered with Tarion and enrol the home into this statutory warranty program. “Be sure you fully understand this warranty and what protections are available to you as the new homeowner,” recommends Borgatti.

7. What should I bring to my appointment when I close? 
You’ll need government issued photo identification like a driver’s license or passport. “This is required by the Law Society’s ‘Know your Client Rule’ to prove that you are who you say you are.”

8. What is the statement of adjustments? 
This document outlines of all your closing costs – things like tax adjustments, Tarion fees, extras and upgrades, and represents an entire list for the final amount due on closing. Be sure your lawyer walks you through this document, suggests Borgatti.

9. What are some things I need to know about closing if I’m buying a condo? 
Ask your lawyer to review what’s covered in your condo fees. “Also, be aware that when you purchase a newly built condo, there are two closings: one when your unit is move-in ready and then a final closing once the building has been registered and you take over full ownership,” says Borgatti.

10. When will I receive my keys on closing day? 
“If you have your moving trucks coming early, you need to make sure you have all your paperwork ready a day ahead of time,” warns Borgatti. Even if everything has been delivered to your lawyer, it still needs to be sent to the vendor’s lawyer and the transfer (and mortgage, if applicable) must be registered on title to the property.

Toronto Star

Tues., Aug. 1, 2017