Buying residential property

1. Why is an Agreement of Purchase and Sale necessary?

The agreement of purchase and sale, such as the standard used by the Association of Nova Scotia Realtors, is put in place to ensure fairness to both the purchaser and the seller. It ensures you are aware of what you are purchasing. Please keep in mind that the applicable conditions vary with each transaction and can be waived should you so choose, only the ones that specifically apply to your situation will be used. Verbal agreements are not enforceable.

Conditions normally include things such as a deposit (earnest money) to the seller on signing to ensure that you are serious; Passing a water potability test, which is not only required for a mortgage also for you and your family's health and safety; the ability to obtain house insurance is required for a mortgage and to protect your investment should you so choose; a property inspection to help satisfy you that what you see is actually what you are getting; a property condition disclosure statement is provided by the sellers to you and sets out the known condition of the home from water to heating, insulation and more; A financing condition is added if you intend to arrange financing through a mortgage or other means and provides you with some time to arrange payment of the home; a pre-closing inspection is a chance for you to ensure that the property is in the same condition as the day of the initial viewing and that any such items as appliances that are to be included are still in the house; The seller is to disclose the amount of property taxes and betterment charges payable during the last calendar year that you know approximately how much you will be paying annually to the local municipal unit.

2. What fees and costs can I expect to incur?

If you are purchasing a home without a mortgage you will expect to pay reasonable legal fees, a recording fee at the land registration office for the deed, deposit paid at time of signing the agreement of purchase and sale, balance of purchase price plus tax, property tax, sewer and fuel adjustment to the date of closing, and deed transfer tax as charged by the local municipal unit. Click here to request a quote. In the event of obtaining a mortgage for purchase you would also incur in addition (keeping in mind that the mortgage proceeds would be used to make up the balance of the purchase price) to the above another land registration office fee for the mortgage, mortgage down payment, cost of a water test, title insurance, survey or suveyor's location certificate and the cost of an insurance policy. Of course some of these additional costs could be incurred even if you are not financing your purchase depending on your choices during the purchase.

3. What is the role of Fownes Law Offices when I am buying?

If retained for your purchase we ensure that the title to your property is to your satisfaction and report to you any easements, explain the agreement of purchase and sale, surveys and land description that are on record at the Land Registration Office, prepare the deed transfer tax affidavit, and forms required to record your closing documents such as the deed and others, prepare your mortgage and supporting documents and explain to you what you are signing, act as the liaison contact between the sellers lawyer and the real estate agent, coordinate the closing of the transaction, perpare all the necessary accounting such as the calculation of deed transfer tax, tax adjustments etc., prepare all final reporting to the mortgage company, record the deed, transfer the funds to the seller etc. You will attend with the lawyer to review the documents and execute them and provide the balance of funds necessary to close the transaction.

Your future property value is very much tied to the decisions you make as you are buying. We play an important role in protecting you on a purchase. Don't accept less from firms who promise low prices but provide services where corners may be cut to achieve low prices.

as a famous person once said ``The sweetness of low price may wear off when the bitter taste of poor service develops``.

Copyright Fownes Law © 2023