The
following general information is designed for the purchase of a
standard
residential home.
Rental Properties or
houses under construction have their own unique additional
considerations.
Certain
provinces and some U.S. states have a "deed" system .
In Manitoba, ownership is
evidenced by a
certificate of title.
The
"title" system has certain advantages, primarily that the government
certifies accuracy of the title thereby eliminating the necessity of
title insurance.
Unfortunately, this
system involves
processing time by the Land Titles Office and creates delays in
document
registration and issue of your new title, of 2 - 4 weeks.
You
must decide and advise our office as to the manner in which you wish to
take
title.
We need the full legal names
of
all persons who wish to be on title.
Most
married couples take title as "joint tenants". Joint
tenants have what is called a right of
survivorship, which
means that upon the
death of one of the parties, ownership passes to the surviving joint
tenant.
Another form of co-ownership
called "tenants in common" is available, and may be preferred by
persons buying property for business reasons.
Tenants in common do not have
a right of survivorship.
On occasion, it may be
desirable for a
married couple to take title in only one person's name in order to
protect the
home from creditors of the other. We
will discuss these issues further at your request.
While
there is some disagreement among lawyers and Realtors as to what time
of day a
purchaser is entitled to take possession, it is generally accepted that
the
seller can move out on the day of possession, unless a time is
specified on the Offer to Purchase..
As a result, you should
arrange for movers, deliveries, etc., to
arrive
at a time when you know the home will be vacant. The
practical thing to do is speak to the seller directly
regarding his or her moving plans. If
you wish to change the possession date, and the seller is agreeable,
please
advise us of the new date and we will make the necessary arrangements
with the
seller's lawyer.
The
exchange of keys does not follow any definite pattern.
Sometimes keys are exchanged
through the
lawyers, sometimes through real estate agents, and sometimes between
the seller
and buyer directly.
If you have not
arranged for the exchange of keys directly form the seller by the time
you
attend at our office for closing, we will endeavour to obtain the keys
for you.
You
must arrange for home insurance. Do
it
well in advance of possession date.
Coverage must be effective as
of the date you expect to receive
keys.
If
there is to be a mortgage on your home, you must ensure that the amount
of
coverage is at least as high as required by the mortgage lender. "Loss
Payable" must be in favour
of the mortgage lender, so be sure to provide
your insurance agent
with the
full name and address of your mortgage lender.
Written confirmation of
insurance coverage must
be sent
to
our office prior to possession.
Our fax
number is 888-1597.
Utilities
should be arranged by you, and in order to assist we provide the
following
telephone numbers for you to call. You
will receive further instructions upon calling each utility.
Centra
Gas Company.
480-5900
Hydro (central
Winnipeg)
927-9500
Manitoba
Hydro (rural and suburban Wpg.)
474-4990
City of Winnipeg Waterworks 986-5858
It is essential that you call in initial meter readings for all the utilities. I suggest you also write down the readings and keep them for at least a month after possession in case the utility company loses the reading you have called in.Often
referred to as a building location certificate, this document shows the
location of buildings and other structures on the subject property,
including
distances between such improvements and the property lot lines. The
survey certificate is for your
protection and will be required by a mortgage lender, if any.
The
responsibility for a Surveyor's Certificate rests with the purchaser
unless the
seller has agreed to provide it in the Offer to Purchase.
If an existing Surveyor's
Certificate is
provided which does not accurately disclose all permanent structures, a
new one
may be required.
You
should call our office no later than two weeks before possession date
to set up
our closing appointment.
The closing
appointment should be scheduled to take place at least two working days
before
the date you expect to receive keys. At
that time you will sign such documents as may be required, and will
remit the
funds which are required to close the purchase transaction.
The
funds which you will remit upon your closing appointment will consist
of the
balance of your downpayment together with all applicable adjustments
and
closing costs.
We will estimate this
amount once we have received the necessary information and will advise
you of
the amount prior to possession date.
We
have enclosed an explanation of closing costs and adjustments. It
is useful but not essential for you to
understand how the various adjustments and closing costs work, as we
will do
all the necessary calculations.
It is
important however, for you to have a rough idea of how much money you
will need
and to have sufficient funds available as of possession.
If you have any reservations
at all or feel
you need further explanation, we strongly recommend you make an
appointment
with out office immediately, and we will take you through a detailed
analysis
of adjustments and closing costs. There
is no extra charge for this interview.
The
funds which you remit at your closing appointment will be an estimated
amount.
Final figures will be
available
only upon completion of Land Titles Office registrations and may result
in
either a refund to you or a balance owing to our office.
The
funds which you remit must be in the form of a CERTIFIED
CHEQUE or
BANK
DRAFT payable to Timothy A. Martin, Barrister and Solicitor.
Upon
completion of Land Titles registrations and the payment of all funds
required,
we will provide our final report to you.
The final report consists of
a 4 - 5 page letter which
summarizes the
transaction, accompanied by copies of various documents.
It is important that you
retain it in
safekeeping for future reference. You
should expect to receive the final report between one and two months
after
possession date.
Summary
To
summarize, you must do the following things prior to receiving keys and
possession:
1.
Arrange home insurance, and
ask the agent to send us
confirmation;
2.
Attend our office to:
a)
Provide your certified cheque
or bank draft;
b)
Sign all required documents.
Remember
that you will not receive keys at the time you bring in your funds and
sign
documents, but rather only after we have courier funds and our trust
condition
letter to the seller's lawyer.
That is
why we ask that you attend at least a couple of days before you expect
to
receive possession.
Your Next Step
Thank
you for reading the foregoing.
If you
have not done so, we would ask that you call our office to confirm how
you wish
your name to appear on title and to provide certain information we
require.
From
the desk of Timothy A. Martin, Barrister and Solicitor