Home & Garden

Home purchased! What now?

  • Last Updated:
  • Jun 18th, 2007 9:37 am
Tags:
None
Newbie
Jul 15, 2006
67 posts
18 upvotes
Toronto

Home purchased! What now?

Hi All,

We just purhased our first home (last night we signed Purchase agreement)
Where I can found what are next steps?
How can I calculate expences that we will have?

I have sent copy of the Purchase agreement and MLSlisting to our Mortgage specialist.
Can you recommend me good laywer?

Closing is July 20, what needs do be done before this date?

To what I need to pay special attention?

All suggestions are morethen welcome.

Thanks in advance
18 replies
Deal Fanatic
User avatar
Feb 15, 2005
6795 posts
2504 upvotes
YEG
It's also lawyer not layer... unless you're looking for a hooker. :cheesygri

If you haven't calculated the costs of owning the house, you could be in for a rude surprise if you didn't put a financing condition on the purchase agreement. :!:
Newbie
Jul 15, 2006
67 posts
18 upvotes
Toronto
Sorry for my spelling mistakes. No need to be rude!!

I know cost of the owning the house but I need to confirm my closing expenses.
Deal Addict
Mar 21, 2006
4478 posts
478 upvotes
Burlington, Ontario
Stole wrote: I know cost of the owning the house but I need to confirm my closing expenses.
These are entirely relavent to you and your situation. Everyone will be different and there are many things to be considered.

Your lawyer will be the best person to advise you on what to expect since they will be the one adding everything up.
Deal Addict
Jun 8, 2004
2553 posts
1791 upvotes
Oakville
LOL. Even you're edit is wrong. It's lawyer, not laywer.

Normally, it would be a good idea to have already consulted with the lawyer before signing the contract. Lawyers will normally help strike out the typical clauses that buyers would want removed and add in the typical clauses buyers would want but the seller wouldn't want in the contract. But the point is moot since you already signed.

Closing costs is part of the cost of the home. Also, any repairs that may be needed on the home is part of the cost of the home.

I assume you have already got someone to inspect the home, or made this a condition in your purchase agreement...something a lawyer would have probably recommended to have included in the offer. You're real estate agent, assuming it was not the seller's agent, would often recommend this as well.
Deal Addict
User avatar
Jul 5, 2003
1118 posts
43 upvotes
Like others have said, the closing costs are dependent on your individual situation. Your agent should be able to advise you on these topics - mine did.

1) Is this a resale home or new construction? If this is a resale and not a condo, you will need a home inspection. Typically, you will have this as a clause in the contract.

2) Lawyer. The lawyer fees will be approximately $1000 to $16000. They typically will review the contract, help with your mortgage, do the title transfer etc.

3) You need to pay the Land Transfer Tax. There are numerous calculators all over the web (http://orebweb1.oreb.ca/calc/LandXferCalc.aspx). If it is a new construction, you are entitled to a rebate from the government (max $2000).

4) Since you are a first time buyer, you are entitled to take up to $20,000 from your RRSP as part of the home buyer's plan.
Deal Fanatic
User avatar
Feb 15, 2005
6795 posts
2504 upvotes
YEG
The lawyer's fees are relatively simple. Here's a breakdown of my cost to buy from 6 months ago.

Lawyer's fee: $750 (varies from $400-800. My lawyer is the managing partner, so his fees are more. $400 gets you paperwork and basic review).

File maintenance (10 year storage fee) $25
Photocopying: $49.75
Document processing: $10

Disbursements:
Search: $6.75
Land Titles Search: $5
Deliveries: $21
Postage: $6.51
Land Titles Office: $193

Total including GST: $1119.45.

You can save $350 by going with a bulk purchase lawyer. I'd rather pay the extra $350 for 25 years of experience and a couple of hours of consultation.
Sr. Member
User avatar
Mar 30, 2007
749 posts
1 upvote
Here.
Stole wrote: Sorry for my spelling mistakes. No need to be rude!!
Don't mind the Spelling Nazis - even though proper spelling should be strived for, it is considered bad netiquette to repeatedly derail threads with spelling or grammar corrections. They are indeed being rude.

:)
Deal Addict
Jun 8, 2004
2553 posts
1791 upvotes
Oakville
I doubt it's a new construction home since OP mentioned MLS Listing and is closing in 30 days.

For older homes, I'd be worried about asbestos, knob and tube electrical, small amp service panel, lead pipes, clay drainage pipes, buried old tank, state of the furnace.

For any resale home, I'd be worried about mold (especially if the house was a former grow op property).
Deal Expert
User avatar
Aug 22, 2003
15540 posts
981 upvotes
Niagara Falls
Call all your utility companies to set up services. Budget for the connection fees on the first bills.

edited to add.... when asking for a recommendation of any sort, this is where it's really importnat to actually have your location listed on your profile or add it to the post....
Member
May 14, 2007
214 posts
18 upvotes
I am doing a cost evaluation for my own home right now. Below are the items I thought about, please let me know if there are things I may have forgotten about. Thanks.

Before closing date:

a) Lawyer
b) Inspector
c) Land Transfer Tax
d) Tarion Warranty
e) Upgrades such as: better carpet, ceramic or better ceramic, hardwood floor, granite, painting, pot lights, darker railing stains, higher ceiling, structural changes, better bathroom fixtures, better lighting fixtures, better cabinets, better windows, more bricks or stone, finish basement, programmable thermostats, buying out hot water tank, energy star, etc.: Depending on you. These could be very very costly.
f) Moving cost
Total: 5000 to As much as you want to pay

After possession costs (0 to 1 yr after):

a) Central Air:
b) Garage Door Opener:
c) Appliances (oven, microwave, fridge, dishwasher, toaster, grill):
d) Blinds/Curtains/Shutters:
e) Furniture (living room set, master bedroom set, breakfast table & chairs, others):
f) Electronics:
g) Range Hood (you will need a better one than the cheap one by the builder)
h) Lighting Fixtures For Dining Room (This is usually not provided by the builder)
i) Utility Connection Fees:
j) Central Vacuum:
k) Property Taxes:
Total: At Least 25K


After possession costs (1-3 yrs after):

a) Fences:
b) Deck:
c) Gutter:
Total: At Least 20K

And plan also a couple of thou for unforeseen things.

M & M
Member
May 14, 2007
214 posts
18 upvotes
My previous post is my cost evaluation for a new home. I think it does not totally apply to you as yours seems to be a resale. Anyway, hope you can find some items in there you have not thought about and that you do not already have with your home.

M & M
Deal Addict
User avatar
Jul 5, 2003
1118 posts
43 upvotes
cba123 wrote: I doubt it's a new construction home since OP mentioned MLS Listing and is closing in 30 days.
You may be right but I have seen new construction listed on MLS (ex. a brand new Met townhouse unit was listed by the Met's sales team a few weeks ago). New cosntruction also has closing dates.
Sr. Member
Jul 21, 2006
654 posts
9 upvotes
CharmyPoo wrote: 3) You need to pay the Land Transfer Tax. There are numerous calculators all over the web (http://orebweb1.oreb.ca/calc/LandXferCalc.aspx). If it is a new construction, you are entitled to a rebate from the government (max $2000).
Land transfer tax credit is not just for new construction but also for resale homes, but only for first time home buyers.

Jay
Deal Addict
Dec 4, 2004
1982 posts
10 upvotes
Kingston
[QUOTE]also for resale homes, but only for first time home buyers.[/QUOTE]
link?
this isn't the way i've always understood it to be.
Deal Addict
User avatar
Jul 5, 2003
1118 posts
43 upvotes
Jay1234 wrote: Land transfer tax credit is not just for new construction but also for resale homes, but only for first time home buyers.

Jay
That is incorrect. LTT rebate only applies to new construction. HBP applies to both new construction and resale. Both programs are only available to first time buyers.

LTT: http://www.torontorealestateboard.com/c ... ms/ltt.htm

HBP: http://www.cra-arc.gc.ca/tax/individual ... enu-e.html
Member
User avatar
Jan 5, 2003
236 posts
79 upvotes
Edmonton
Jay1234 wrote: Land transfer tax credit is not just for new construction but also for resale homes, but only for first time home buyers.

Jay
What's the details about Land Transfer tax? I don't think we have anything like that in Alberta.
Deal Addict
User avatar
Apr 3, 2003
2882 posts
13 upvotes
Repeatedly? It's rude to reply without reading posts.
and or wrote: Don't mind the Spelling Nazis - even though proper spelling should be strived for, it is considered bad netiquette to repeatedly derail threads with spelling or grammar corrections. They are indeed being rude.

:)
Deal Addict
User avatar
Apr 8, 2007
1858 posts
306 upvotes
Mississauga
also wanted to add that in addition to the legal costs, you may have to give the seller $$ for property tax if he's paid for a period after your possession.

we closed the house in May, but the seller had paid the property taxes until June 30th. We had to give him the $$ for the taxes between the time that we took possession and for the time that he had paid until.

it wasn't a large amount in our case ($350) but it wasn't something that i wasn't expecting and upped the closing costs to more than I had budgeted.

the other thing that's thrown off my budget is the stupid account activation fees all the utilities charge in the first month....

$25 for municipal tax
$170 for electricity deposit
$25 for gas
$36 for water

Top