Buying a Home
When buying a home, a major concern is always the actual cost. As well as the purchase price, the cost of your home will include legal fees and various disbursements known as closing costs that my office pays on your behalf. These costs will be required along with your down payment which we will require from you before the possession date. GST is payable on most closing costs. RST is payable on legal fees
Typical Closing Costs
Land Transfer Tax: This tax is calculated as a percentage of the purchase price and is payable to the Land Titles Office at the time the title is registered.
Registration Costs: These are also paid to the Land Titles Office at the time of registration. https://teranetmanitoba.ca/land-titles/land-titles-fees/
Survey Certificate & Title Insurance: If a survey certificate is not available from the seller, a new survey is required. Title Insurance can be purchased as an alternative to buying a new survey. If Title Insurance is purchased, in most cases, you will not have to pay interest to the Vendor as mortgage funds can be advanced more quickly.
Zoning Memorandum: This document verifies that the property complies with municipal zoning regulation. https://www.winnipeg.ca/ppd/Documents/Zoning/DevelopmentApplication/Request-for-Zoning-Letters.pdf
Tax Certificate: This document verifies whether or not there are any unpaid property taxes. http://www.winnipegassessment.com/AsmtTax/English/SelfService/ServiceFees.stm
Tax & Title Searches: This refers to searching the title and ordering copies of any encumbrances registered against it. https://teranetmanitoba.ca/land-titles/land-titles-fees/
Miscellaneous Disbursements: The cost for couriers, photocopies, faxes, postage, file management, file storage, office supplies, and preparation of a mortgage.
Interest
The question of interest often arises when there is a delay in processing mortgage documents at the Land Titles Office.
If you are arranging a new mortgage, the mortgage money will not be released until the registration and Lawyer's summary are complete. There will be no interest charged during the period, as you have not yet received the mortgage money.
However, it is standard practice for the home-buyer to pay interest to the seller on the unpaid purchase price at the mortgage rate of interest, from possession date until final payment is made. Title Insurance may eliminate this cost.
Property Taxes
You are responsible for the property taxes for the months that you own the house.
In all transactions, either the buyer or the seller pays the annual tax bill. The party who paid the taxes is then reimbursed by the other party by way of an adjustment to the sale price.
If the purchase is made before the taxes are due, you pay the property taxes but will be given credit from the seller for his portion, and if the taxes are already paid, you will reimburse the seller for your share.
