Buying a Home

When buying a home, a major concern is always the final

cost. As well as the purchase price, the cost of your home will

include legal fees and various disbursements known as

closing costs that are paid by my office on your behalf. These

costs will be included in your down payment which we will

require from you before possession date. GST is payable on

most closing costs. RST is payable on Legal Fees.

Typical Closing Costs

Legal Fees:

The Manitoba Bar Association provides a suggested set of

legal fees for house sale transactions. The fees that will be

charged are dependent upon such factors as the complexity of

the transaction, whether there is a rush to process the

documents, the seasonal delays, etc.

Our flat-rate for a basic residential home purchase transaction

is $675.00 plus GST & RST.

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. Please see the included schedule for the fees that

will apply to your purchase.

Registration Costs:

These are also paid to the Land Titles Office at the time of

registration. The cost of registering a title is $85.00 and the

cost of registering a mortgage, if required is also $85.00.

Survey Certificate/Title Insurance:

If a survey certificate is not available from the seller, a new

survey is required. The cost is approximately $550.00. Title

Insurance can be purchased as an alternative to buying a new

survey at a cost of $200.00 to $250.00. 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. The cost is $70.00.

Tax/Title Searches:

This refers to searching the title and ordering copies of any

encumbrances registered against it. The cost is $20.00 per tax

search and $30.00 per title search.

Tax Certificate:

This document verifies whether or not there are any unpaid

property taxes. The cost is $43.00.

Miscellaneous Disbursements:

The cost for couriers, photocopies, faxes, postage, file

management, file storage, office supplies, and accounting fees

are approximately $200.00.

Interest:

The question of interest often arises when there is a delay in

the processing of 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 a credit from the seller for his

portion, and if the taxes are already paid, you will reimburse

the seller for your share.

Please note: Fees are subject to change without notice. The

general information in this brochure and examples are for the

purpose of illustration only. Various other factors may come

into play and affect the costs of any individual home

purchase. Please contact my office for details regarding your

home purchase.

Example of a Purchase:

Information:

Possession Date June 1

Purchase Price $200,000.00

Mortgage (10% down) $180,000.00

Interest Rate 4%

Property Taxes $2,400.00

Land Titles Delays 21 days

Closing Costs:

Disbursements:

Land Transfer Tax $ 1,735.00

Mtg. Registration Costs 85.00

Title Insurance 250.00

Tax Certificate 43.00

Tax & Title Search 50.00

Miscellaneous 200.00

GST on $(200) 10.00

Total Disbursements $ 2,373.00

Legal Fees:

Basic Fee $ 675.00

Mortgage Fee 200.00

GST & RST on $(875) 113.75

Total Legal $ 988.75

Interest:

$180,000.00 x 4% / 365 x 30 days) $ 591.78

Total Costs:

($2,373.00 + 988.75 + 591.78) $ 3,953.53

Less:

Property Taxes Credit:

($2,400.00 ÷ 12 x 5) $ 1,000.00

Total Funds Required:  $ 2,953.53