Purchase And Sale Agreement

The best thing you, as the Purchaser, can do to help prevent having any problems is to understand your agreement. These agreements can be supplied by your Realtor and are contained in standard form. You may want to sign your agreement conditional upon your lawyer's approval. There are financing dates contained in your agreement that you are responsible tio make. If you do not obtain in writing an unconditional approval by the specified date, then the vendor or the listing real estate agent must be notified in writing that financing has not been arranged, and an agreement in writing may be signed to extend the financing deadline, or the agreement may be terminated. If you do not meet the specified date, you may extend the deadline, with an agreement in writing to do so, or it mat be terminated. You may lose your deposit and be subject to an action for damages by the vendor, if you do not notify the realtor of your inability to arrange financing.

Anyone buying even a new home, should have it inspected by a qualified building inspector. It is recommended that this inspection cover the potential existence of any hazardous materials.

Any agreement should state ithat the quality of the well, the water, and the disposal field are to be tested prior to closing.

Your agreement should state how the H.S.T is to be handled and if the price includes tax or not.

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Certificate of Title

At closing your lawyer will provide you with a Certificate of Title containing their opinion on title which will be subject to; 

Mortgages (if any) 

Restrictive Covenants (if any) 

Easements, Rights of Way, and Agreements (if any) 

The accuracy of the information contained in the statutory declarations (if any) 

The existence of any persons who have obtained adverse possession, prescriptive rights, or squatters rights to occupy or use the property. 

The accuracy of the indices at the Registry of Deeds 

The diminution of the dimensions of the property resulting from minor adjustments of street lines

Their opinion on title will also be subject to the following qualifications about which they do not have the knowledge, expertise or credentials to certify 


Remember when buying property that the overriding principle of law is "Buyer Beware". The onus is on the Purchaser to be prudent.

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Survey

As an absolute minimum standard, they recommend to all Purchasers that they obtain a Location Certificate prepared by a qualified land surveyor showing the location of the house, showing all the improvements on the property and showing access to a public highway.

An important thing to have is the survey documents certified in your name so as to establish privity of contract between the Surveyor and yourself.

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Municipal Taxes and Liens

At closing, be prepared to pay six months taxes in advance either by reimbursing the Vendor for prepaid taxes or by kicking off a tax account with your financial institution if it will be paying the taxes on your behalf. In either event your lawyer will look after these adjustments. 

A Tax Certificate from the Municipality will be supplied ny your lawyer to ensure that the Property taxes are fully paid up to date.

Check with your lawyer for other possible municipal taxes and/or fees you may be responsible for.

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The Mortgage


An important thing to remember when applying for a mortgage or applying to assume a mortgage that you advise the mortgage officer on first meeting who will be acting as your lawyer.

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Conflict of Interest

In the Code of Professional Conduct adopted by the Nova Scotia Barristers Society there is a provision that states where a lawyer is requested to act for more than one party to a transaction the lawyer must advise all parties concerned. As your lawyer will probably be retained by your mortgage company to certify the title of the property to secure the mortgage these ethical provisions will come into play.

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Fire Insurance

It is a requirement of all mortgage companies that, at the time you purchase the property, you have in your possession a copy of the fire insurance policy in an amount at least equal to the amount required by the mortgage company. The policy must be payable to the mortgage company pursuant to the mortgage instructions. 

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Taking Title

The most common way of purchasing a property among married couples is to make the purchase as joint tenants. As joint tenants, if one of the two persons in whose name the property is registered dies, title to the property automatically passes to the survivor. Title can be put in the name of one spouse only if desired.

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The Closing

The Agreement will state the closing date and, unless both parties agree to change the date, it will be your closing date unless it falls on a Saturday, Sunday, or Holiday. 

Before the closing date, your lawyer will want you to make an appointment to go over the transaction, sign your documents and deposit with them the funds required to complete the transaction.

On closing day, the Vendor will provide the deed and keys to the property. After the deed is transferred and the Vendor is paid, you will be provided with a report containing the Certificate of Title, a copy of your Deed, Mortgage, and all the supporting documentation.

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Legal Fees and Disbursements

Your lawyer will advise you of the exact amount of money you will need to complete the transaction. In addition to the purchase price, there will be other expenses which you may be required to pay either before or at the closing. 

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Certified Cheque

The Purchaser is required to pay for the property by cash or certified cheque. Your lawyer's firm will be paying for the property on your behalf using funds provided to them by yourself. Your lawyer requires all the funds for the purchase of your house to be provided to them by certified cheque or bank draft. Your lawyer will obtain the bank draft for your mortgage funds directly from the financial institution. The certified cheque or bank draft for your down payment, legal fees, and disbursements should be made payable to your lawyer in Trust.

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