BUYING A HOUSE IN NOVA SCOTIA?
We have prepared this web page for your information, so that when we act as your lawyer in your home purchase you will know what we are doing for you.
We will:
Our most important role is representing and protecting your interests.
We recommend that every property be surveyed prior to its purchase:
A surveyor will determine the acreage of a property and will indicate any easements or encroachments on or over the property. The deed describes the land and usually makes no reference to the buildings on it, so that a search of title does not reveal whether the buildings, shrubbery, driveway, well, etc. are located within the boundaries of your property as set out in your deed. A Survey Certificate will ensure that the buildings, driveway, fences, shrubbery, wells, etc. are located within the boundaries of the property. Unless you purchase title insurance, a survey certificate is usually required by lending institutions before advancing mortgage funds as proof that the building is actually on the property being mortgaged.
A survey certificate usually costs in the vicinity of less than $1000.00 including HST.
It is not a good idea to rely on a former owner's survey. If there is a mistake in it you will have no recourse to sue the surveyor for the faulty work as there is no contract of employment between you and the surveyor, only between the surveyor and the former owner. The former owner may give a Declaration unless the building locations have changed or been altered since the former survey was done. Therefore we recommend that an up-to-date survey certificate be obtained from a qualified land surveyor.
Usually a husband and wife take title to property as "Joint Tenants" so that when one of them dies, the survivor will automatically acquire the title to the land. If they take title as "Tenants-in-common" the heirs of the person who died would have a share in that person's one-half interest in the property.
Sometimes married couples take title in the name of only one spouse to protect the property from the debts of the other spouse. For instance, the wife may have title to the property where the husband has a business so that any of the husband's business debts will not become a lien on the property in case the business fails. This may be a problem if the marriage breaks down or if the spouse with the property dies without a Will. To protect your interest we recommend that when you buy a property you consider the provisions of your will.
If you are mortgaging to buy property you should consider life insurance, as opposed to mortgage insurance, to pay the mortgage should you die. Mortgage insurance is usually in effect for as long as you own a specific property so that once you sell that property the insurance ends and is not transferrable to your next property. However, regular life insurance is in effect so long as you pay the premiums. Thus, you may get the same coverage by increasing your present life insurance coverage instead of purchasing a policy from the bank or mortgage company. We recommend you compare rates before you purchase your insurance.
Before purchasing a house it is prudent to obtain fire insurance. Mortgage companies or banks require proof of coverage, of a minimum amount of their mortgage, before advancing funds. The policy must name the Bank under its "loss payable" clause. We must have, on the closing date, a copy of the insurance policy or a letter from the insurance company confirming coverage. We recommend that you purchase a homeowners package which covers the contents of your home, as well as the building itself. Also, we recommend that all policies become effective on or before the closing date as set our in your Agreement of Purchase and Sale.
Usually your lawyer does not see this Agreement until it has been signed, and this is often a source of problems. Most Agreements have conditions such as obtaining financing or selling your present property. If your Agreement is conditional on anything you must be fully aware of your responsibility under the agreement. The Agreement usually allows a limited number of days to fulfil the conditions and conditions may be deemed fulfilled unless you give written notice that they have not been fulfilled within the allowed time period. For example, if your present home cannot be sold within the time period allowed and you have failed to give the proper notice you may be forced to buy the property anyway, or be sued for damages.
Other common conditions are that the water be tested, the furnace checked, or a UFFI Warranty given (such that the house does not contain Urea Formaldehyde Foam Insulation). If you have any doubts as to the meaning of these conditions or your responsibilities thereunder, please contact us to discuss them. Every contract contains a clause that "time shall be of the essence", meaning that all the conditions in the agreement must be fulfilled within the time periods allotted and that you must be ready and able to complete the transaction on the specified closing date. Failure to do so could mean that the vendor could void the contract and hold you liable for damages. Therefore, allow ample time for the fulfilment of conditions.
The title search clarifies whether your property is subject to restrictive covenants, building restrictions, easements or rights-of-way, etc.
As of March 1, 2005, all counties in Nova Scotia became subject to the Land Registration System. Properties which are transferred for value, subdivided or used as collateral for financing must be migrated to this new system. The practice is that the vendor is responsible for the migration and its cost. The parties may agree otherwise. Once the property is in the Land Registration system the Province of Nova Scotia certifies title to the purchaser. The migration will need to take place prior to the purchase. This removes the need for the lawyer to conduct a full title search of the property. The lawyer will still need to review the information for the property after the conversion to determine if any liens, mortgages or judgments need to be paid by the vendor or if there are any other issues surrounding the title that need to be resolved. This must be done by a certain date which is specified in the Agreement of Purchase and Sale.
A Tax Certificate, which we obtain on your behalf, indicates whether or not the taxes on the property have been paid. A tax adjustment at the time of closing ensures that the vendor pays the percentage of the taxes which are his responsibility. Other liens might include Mechanics Liens in the case of a newly constructed home, or Court Judgments against a prior owner which have attached to the property. If these should arise you will be notified immediately so that we may discuss these with you.
The Purchaser or Buyer must swear a Declaration as to the purchase price and pay the applicable percentage of it for the Municipal Deed Transfer Tax.
Municipal Deed Transfer Tax Information
If you are assuming a mortgage of the present owner, or if you have been approved for a new mortgage, we will contact the mortgage company involved who will send us all the necessary information. We prepare the mortgage documents, arrange for the funds to be advanced and disburse them appropriately. Therefore, when obtaining a mortgage, advise the mortgage company or bank that we will be acting as your lawyer. Also, you should ask as to the length of time required by the mortgage company or bank to approve your application, because if it is going to take longer than you are allowed under the Agreement of Purchase and Sale you should contact us immediately. Also, please advise us when your mortgage has been arranged or approved so that we may complete our paper work well in advance of closing.
The closing date is the date in your Agreement of Purchase and Sale for the transfer of the property to take place. Before the closing date we meet with you to go over the transaction, to explain to you all the costs involved, and review a Statements of Adjustments with you which outlines the amount of cash required to complete the transaction. Also, we arrange the time and place for closing at which time the vendor will give you a deed for the property and the keys to the premises. This is when you must sign your mortgage or mortgage assumption document, and all the required transfer papers. We register the Deed and Mortgage for you at the Registry of Deeds in the County in which the property is located and forward to you the registered Deed with the registration particulars on it, your Statement of Registered and Recorded Interests, your copy of the mortgage, etc. Under the Agreement of Purchase and Sale, the purchaser must pay for the property (balance required to close per Statement of Monies Required to Close) either by cash, certified cheque or bank draft, which should be made payable to Nancy M. Peers, in trust. You should bring this cheque with you at the time of closing.
It is to your benefit to see the property prior to closing, but if you cannot see inside, at least go by the outside. As a rule fixtures are included in the purchase price of the house and these include things attached to the building such as wall-to-wall carpet, ceiling fans, etc. However, chattels are not as a rule included in the purchase price of the property unless specifically provided for and these would be such things as a washer, dishwasher, fridge and stove.
When you are ready to purchase your home we will be punctual, answer your questions, and keep you fully informed.
NANCY M. PEERS
Please note that this information has been prepared for our clients who are buying a used residence in the Lunenburg County area. Additional factors may arise if the property is in another county, if you are buying new construction or having your house built, buying business premises, apartment buildings, condominiums, etc. Please do not hesitate to contact us with any questions you may have regarding the sale of these types of property.
Disclaimer: The information in this article is believed to be accurate and reliable when posted, but is not guaranteed to be accurate, complete, or current at all times. This article is for informational purposes only and is not intended to provide official financial, legal, accounting, or tax advices and should not be relied upon in that regard. The rates and fees are not guaranteed to be current, though they are endeavoured to be kept current.
