1. I am buying a home. When do I need to deliver the balance of my funds?
Typically, your lawyer will need to meet with you about 7 days before the closing. Though there are factors that affect this timing, plan on having your funds ready on or about that time frame.

2. I have been pre-approved for a mortgage, is this good enough to waive conditions?
No, you have to make sure that the property you are purchasing also passes the mortgage company's financial test. Once the mortgage company approves both you and the property that you have made the offer on then you can waive your financing condition.

3. What factors should I consider in choosing a real estate lawyer?
The factors you should concentrate are the lawyer's experience and the way that they handle your file. Please check out our article on Choosing a Lawyer for more information.

4. What are the items that make up my legal bill?
Essentially, there are 4 major items that make up your legal bill. There are the legal fees themselves, other fees and charges, actual payments to third parties (disbursements) and GST (PST may apply in other provinces)

5. When can I expect to meet my real estate lawyer?
Typically, you will meet with your real estate lawyer at least 1 week before the possession date. This gives your lawyer enough time to complete everything required and get your deal closed on time.

6. What do I own when I buy a condominium?
When you buy a condominium unit, you acquire space that is often bounded by walls, floors and ceilings. In some circumstances you also buy a parking stall. In a bare land unit, you buy an interest in the actual land and anything built on it.

7. Should financing be a condition of my offer to the Seller?
When you are preapproved this simply means that you personally are approved. However, this does not mean that the financing institution has approved the property you are planning to buy. There is the possibility that the bank's appraisal of the property isn't high enough to justify the price you are offering. As such, you should insist that financing be a condition of your purchase.

8. The financing has been approved for the property, is there anything else I need to do?
Typically, you are approved subject to your providing of the documentation your broker or mortgage company relied on to approve the mortgage. You may have to provide a number of support documents prior to the mortgage being fully approved. Check with your mortgage specialist well in advance of the closing date to make sure that they have everything they need to proceed.

9. I need a new mortgage to purchase the home, what are the steps that I have to take?
WWhen you purchase a property you should ensure that the financing of your purchase is an actual condition of the purchase. You may have been preapproved personally but this does not mean that the unit or property you've purchased has been approved for purchase at the price you negotiated. By making your financing a condition you protect yourself against the possibility that you cannot obtain that mortgage. You should also ensure that you have the approval in writing before waiving the mortgage condition.

The sellers are leaving Canada or have already left before the transaction closes?

Section 116 of the Income Tax Act requires that 25% of the sale price be withheld until a compliance certificate is obtained where you are dealing with non-residents. The Income Tax Act contains no definition of residency and the CRA will consider each case on its merits. The primary residential ties of an individual are his dwelling place, spouse and dependants and personal property and social ties. As you know, there is no capital gains tax on a principal residence but did you know that when the CRA looks at an application for a compliance certificate they will not issue one when there are outstanding debts that the seller owes to the CRA unless those debts are paid.

The question of whether the sellers are residents of Canada for tax purposes can be complicated. The sellers generally consider that if they are non-residents and the 25% holdback is in effect then someone is punishing them when it is simply the requirement of Section 116 of the Income Tax Act which is put there to protect the purchaser because if money is owing to the CRA, the CRA will go after the purchaser.

If you are the listing realtor and your seller is leaving Canada then be proactive. Make sure the seller's lawyer gets the offer once the conditions are removed so that the application for the Compliance Certificate can begin immediately. It could take 2-4 months to obtain. Have the sellers talk to a tax accountant or lawyer so they can get correct advice from the start. Often, if the husband is working out of Canada but his wife and children are still here, then all will be considered residents of Canada for tax purposes.

The best solution for everyone is that the sellers stay in Canada until they are paid out on the sale or at the very least, that the wife and children are here at closing.

Bill LeClair

1. I am buying a home. When do I need to deliver the balance of my funds?
Typically, your lawyer will need to meet with you about 7 days before the closing. Though there are factors that affect this timing, plan on having your funds ready on or about that time frame.

2. I have been pre-approved for a mortgage, is this good enough to waive conditions?
No, you have to make sure that the property you are purchasing also passes the mortgage company's financial test. Once the mortgage company approves both you and the property that you have made the offer on then you can waive your financing condition.

3. What factors should I consider in choosing a real estate lawyer?
The factors you should concentrate are the lawyer's experience and the way that they handle your file. Please check out our article on Choosing a Lawyer for more information.

4. What are the items that make up my legal bill?
Essentially, there are 4 major items that make up your legal bill. There are the legal fees themselves, other fees and charges, actual payments to third parties (disbursements) and GST (PST may apply in other provinces)

5. When can I expect to meet my real estate lawyer?
Typically, you will meet with your real estate lawyer at least 1 week before the possession date. This gives your lawyer enough time to complete everything required and get your deal closed on time.

6. What do I own when I buy a condominium?
When you buy a condominium unit, you acquire space that is often bounded by walls, floors and ceilings. In some circumstances you also buy a parking stall. In a bare land unit, you buy an interest in the actual land and anything built on it.

7. Should financing be a condition of my offer to the Seller?
When you are preapproved this simply means that you personally are approved. However, this does not mean that the financing institution has approved the property you are planning to buy. There is the possibility that the bank's appraisal of the property isn't high enough to justify the price you are offering. As such, you should insist that financing be a condition of your purchase.

8. The financing has been approved for the property, is there anything else I need to do?
Typically, you are approved subject to your providing of the documentation your broker or mortgage company relied on to approve the mortgage. You may have to provide a number of support documents prior to the mortgage being fully approved. Check with your mortgage specialist well in advance of the closing date to make sure that they have everything they need to proceed.

9. I need a new mortgage to purchase the home, what are the steps that I have to take?
When you purchase a property you should ensure that the financing of your purchase is an actual condition of the purchase. You may have been preapproved personally but this does not mean that the unit or property you've purchased has been approved for purchase at the price you negotiated. By making your financing a condition you protect yourself against the possibility that you cannot obtain that mortgage. You should also ensure that you have the approval in writing before waiving the mortgage condition.