REAL ESTATE

We understand that real estate transactions can be daunting - but they don't have to be.  We are here to answer your questions and make sure everything runs smoothly.  Below are answers to some of the most common questions asked by our clients.

Purchases

 

Q. My Offer to Purchase has been accepted – what do I do now?

 

A.  If you have a real estate agent and your Offer has conditions (such as having your financing approved by a certain date) your agent will keep in contact with you until the conditions are satisfied.  Once all conditions have been met, your agent will forward a copy of the Offer to our office and we will contact you to let you know that we have opened a file and to answer any questions you may have at that time.  If you purchased privately (without an agent), please forward a copy of the Offer to our office and we will monitor it until conditions are satisfied, then we will open a file and begin to prepare for closing.

 

If you are paying cash for your home, then we can calculate your closing costs immediately and have you in to sign within a day or so.

 

If you are financing your purchase with a mortgage we will need to wait until we receive instructions from your bank/lender.  These instructions are necessary for us to complete the documents you need to sign and to accurately calculate your closing costs.

 

Finally, it is never too early to begin arrangements for insurance on your new home.  Confirmation that insurance is in place and effective the date of possession is required before your lawyer can give you keys.

 

Q.  What are my closing costs?

 

A.  The cost required to close your purchase is calculated as follows:

 

Purchase Price – deposit + legal fees + disbursements + interest +/- tax adjustments.

 

Legal Fees:

All cash purchase (no mortgage):   $595.00*

Purchase with mortgage:                 Add $295.00

Purchase of a newly

constructed home or condominium w/mortgage:     $1,185.00*

Construction advances:                    $195.00* each

Documents to be sent outside Winnipeg for signing:  Add $95.00

*Plus GST and PST

**If the purchase price is over $600,000.00, additional fees may apply

 

Disbursements: (expenses incurred on your behalf)

 

Land Transfer Tax:  To find out the land transfer tax for your purchase, you can visit:  http://www.tprmb.ca/tpr/land_titles/lto_offices/docs/ltf_ttt_16_en.pdf or contact our office.

 

Mortgage Registration Fee………….……..…  $107.00

Title Insurance (if required)………..….........  Approx.  $225.00*

*click here to learn more about title insurance

Tax Certificate (if required)……….……….....  Approx. $45.00

Miscellaneous (Land Titles and Tax

searches, photocopies, faxes,

courier charges, etc.)…………………………….. $250.00

 

Interest:

If you are financing your purchase with a mortgage, your bank/lender in most cases will not release funds until the mortgage is fully registered (in Manitoba this can be approximately two weeks after the date of possession).  You are therefore required to pay interest to the Seller on the mortgage proceeds, at the same rate you will pay on your mortgage, from the date of possession until the date the funds are received by the Seller’s lawyer.

 

Tax Adjustments:

We want to make sure that you only pay taxes for the period of time you actually own the home during the current tax year.  Between lawyer’s offices, we will figure out what your share is and what the Seller’s share is and “adjust” the balance due to the Sellers accordingly (either with a credit to you or a credit to the Seller, depending on what time of year you take possession).

 

 

Sales

 

Q. I have accepted an Offer to Purchase on my house.  What do I do now?

 

A.  If you have a real estate agent and the Offer is conditional (for example, if the purchasers must have their mortgage approved by a certain date), then your real estate agent will be in contact with you to let you know when the conditions have been satisfied.  Your agent will then forward a copy of the Offer to our office and we will contact you to let you know we have opened a file and to answer any questions you may have at that time.  We will then set up an appointment for you to sign your sale documents.

 

Q.  What are your legal fees?

 

A.  Our legal fees for a residential sale (for sale of rental or commercial property, please contact our office for a fee quote), our fees are as follows:

 

Sale of property with clear title

(no mortgages, liens, etc. on title):            $595.00 plus GST & PST

Mortgage payout required:                        add $195.00 plus GST & PST

*If sale price is more than $600,000.00, additional fees will apply

Documents to be send outside of Winnipeg for signing, add $95.00

Disbursements (charges incurred by our office on your behalf) on a sale tend to be approximately $225.00.

 

Q. What other costs are involved in selling my home?

 

A.  The following are typical costs which would be deducted from your sale proceeds and paid by our office:

 

Mortgage:

The balance remaining on your mortgage must be paid in full from the sale proceeds*.  In Manitoba, there is a delay between the date of possession and the time registrations are complete in land titles and the money is released – this typically takes about two weeks.  Please note that you will be responsible to make all mortgage payments up until the time your mortgage is paid in full (as noted previously, this may be up to two weeks after possession).

 

*It should also be noted that most lenders charge a prepayment penalty if your mortgage is being paid out before the end of your term.  This penalty can typically range from three months’ interest on your mortgage, to an “interest rate differential” which can reach into the thousands.  You should contact your bank/lender to discuss what kind of penalty may be applicable on your mortgage in order to more accurately estimate your net sale proceeds.

 

Real Estate Commission:

The purchaser’s deposit will be held in the trust account of the real estate agency until the sale is complete.  The balance of the commission is required to be paid by the Seller’s lawyer from the sale proceeds.

 

Tax Adjustments:

We want to make sure that you only pay taxes for the period of time you actually owned the home during the current tax year.  Between lawyer’s offices, we will figure out what your share is and what the Purchaser’s share is and “adjust” the balance due to you accordingly (either with a credit to you or a credit to the Purchaser, depending on what time of year the Purchaser takes possession).

 

Interim Financing:

If you intend to use a portion of your sale proceeds to finance the purchase of a new home and the possession date for your new home is before or very soon after the possession date on your sale, you will require interim financing (sometimes called a “bridge loan”) while you wait for the funds from your sale to become available (typically two weeks following the date of possession for your sale).  Please contact your financial institution to make the necessary arrangements.

Mortgage/Refinance

 

Q.  I've signed mortgage documents with my bank/mortgage broker.  What next?

 

A.  Your lender will provide our office with mortgage instructions so that we can prepare the documents required to be registered at the Winnipeg Land Titles Office.  Once the documents are ready, we will contact you to attend at our office to sign the documents. 

 

Q.  How long until I get my money?

 

A.  Assuming all conditions have been met, we can typically have your mortgage proceeds for you within three business days of the date you come to sign.

 

Q.  What are your fees for a mortgage/refinance?

 

A.  Fees for a mortgage or refinance are as follows:

 

Mortgage/Refinance (includes one payout)........  $595.00

Each additional payout.................................  $50.00 - $100.00 depending on complexity

Transfer of Land..... add $295.00

 

Disbursements:

 

Mortgage Registration Fee………….……..…  $107.00

Title Insurance (if required)………..….........  Approx.  $225.00*

*click here to learn more about title insurance on a refinance

Tax Certificate (if required)……….……….....  Approx. $45.00

Miscellaneous (Land Titles and Tax

searches, photocopies, faxes,

courier charges, etc.)…………………………….. $250.00

 

              

Still have questions? 

Please Contact Us for the answers you need.

Visit

80 St. Anne's Road

Winnipeg, MB  R2M 2Y7

Call

T: 204-667-3940

F: 204-663-1699 

© 2023 by

Advisor & co.

Proudly created with Wix.com