Welcome to Your Home Buying Journey!
BUYING
Completing The Sale
Negotiation
Negotiating the Offer
Once you’ve signed the offer, your Sales Representative will register it with the listing broker. From there, a meeting will be arranged between the listing Sales Representative, your Sales Representative, and the Seller to present your offer. The Seller has several options:
- Reject the offer.
- Accept the offer as presented with no changes.
- Propose a counter-offer with adjustments such as price, closing date, or conditions.
If a counter-offer is made, you can accept it or propose further changes, signing the amended offer back to the Seller. Thisis where your Sales Representative’s negotiation skills play a critical role in securing the best outcome for you.
Mortgage
Registering the Mortgage
Your lawyer will receive instructions from your mortgage provider to prepare and finalize the necessary mortgage documents. Once the papers are signed, the lender releases funds to your lawyer. Some lenders may manage your property tax payments to ensure they remain up-to-date, which could involve holding back an initial amount to set up a tax account. Be sure to confirm with your mortgage representative how your property taxes will be handled.
Your Lawyer
The Role of Your Lawyer
Your lawyer ensures that the property has a clear and marketable title, free from liens, judgments, or encumbrances. They will receive all the necessary documentation related to the sale from your Sales Representative and handle the legal aspects of the transaction.
Insurance
Insurance
Fire insurance is required for the property, with coverage at least equal to the mortgage amount. This policy should include a guaranteed replacement clause and must take effect on the closing date to satisfy the lender’s requirements.
Tax
Land Transfer Tax
In Toronto, Ontario, Land Transfer Tax (LTT) is a fee paid by the Buyer upon closing a real estate transaction. It is calculated as a percentage of the property’s purchase price and applies both provincially and municipally. Toronto Buyers pay an additional municipal LTT on top of the provincial tax. First-time homebuyers may qualify for rebates to reduce the amount payable. To estimate your Land Transfer Tax, use the City of Toronto's Land Transfer Tax Calculator.
Fees
Legal Fees
Legal fees for a straightforward real estate transaction typically range between $1,200 and $2,500, plus additional disbursements. These fees are due prior to the closing date.
Adjustments
Statement of Adjustments
The final amount you’ll pay on closing is subject to a Statement of Adjustments, which accounts for any pre-paid or outstanding costs such as property taxes, utilities, or fuel. For example, if the Seller has paid taxes beyond the closing date, you’ll reimburse them for the overpaid amount. Your lawyer will notify utility companies of the ownership change and arrange final meter readings for the closing day.
Closing
Closing Day
On closing day, lawyers or their clerks will exchange funds and documents to finalize the transaction. Typically, you’ll gain access to your new home by late afternoon. As a safety precaution, changing the locks after closing is recommended. If your home has deadbolt locks, replacing the cylinder is a simple way to ensure peace of mind.
Throughout each step of the process, your team of professionals is there to support you, ensuring the transition into your new home is as seamless and stress-free as possible.