The commission is usually paid by the seller out of the funds from the transaction The amount of commission is stipulated in the listing agreement and on MLS listings it is shared between the listing broker and the brokerage bringing the offer from the buyer.
There can be other scenarios where the buyer pays his agent but this is rare. The agent can only be paid by one party.
The amount of deposit varies in different regions. In the Greater Toronto area it is usually about 5 percent of the purchase price. This deposit is payable immediately upon acceptance of the offer and is held in trust to be applied to the purchase price on closing. In smaller cities the deposit is often much less.
- a completed mortgage application form
- a copy of the listing with a property photo,
- a copy of the accepted agreement of Purchase and Sale
- income verification letter from your employer and some recent pay slips
- evidence of the source of your downpayment
Land transfer tax is usually the largest tax payable and it is paid by the buyer on closing to the Ontario government to register the transaction.
GST is payable on services such as laywer's fees, realtor's commission, surveyor's fees etc.
GST is payable on the purchase of new homes and condominiums; substantially renovated homes; some vacant land.
GST is NOT payable on resale homes.
The sale of your principal residence is exempt from capital gains tax but capital gains tax may be payable on income properties or additional properties other than your principal residence.
Non resident tax on income or capital gains by non-residents must be withheld at source.
In every resale offer, the purchase price is payable "subject to the usual adjustments". Adjustments fine-tune the income and expenses of a real estate transaction as of the day of closing so that each party is responsible for the time that they actually own the house.
Municipal property and school taxes are always adjusted, so if a seller paid too much, the buyer pays the excess back to the seller and vice-versa.
The principal amount of the mortgage is adjusted to the day, together with any interest adjustments and any money held by the lender in a tax account for the property.
Condominium fees, utilities, fire insurance and first and last month's rental deposits on a rental property are also adjusted.
These are the extra closing costs you need to budget for so be sure you have your lawyer give you an estimate prior to closing.
For many years the legal status of basement apartments, flats and other accessory residential units which have been added to houses has been unclear. Many municipalities passed zoning by-laws prohibiting these types of apartments in houses. Nevertheless, many thousands of basement apartments and other accessory rental units were constructed. Although the exact number is unknown, it is estimated that as many as 100,000 illegal units were in use across the province in 1993.
In 1994 the N.D.P. government proclaimed Bill 120 the Residents Rights Act. This Bill permitted second units in houses, regardless of Municipal Zoning, provided that Health and Fire safety standards were met. The Ontario Fire Marshal's Office proclaimed Ontario Regulation 385/94 in July of this same year. (retrofit section dealing with Two Unit Residential Occupancies). These two pieces of legislation both mandated the permissibility of, and the safety requirements for Basement Apartments in Ontario.
On November 26, 1995 the new Conservative government introduced Bill 20, restoring back to municipalities the right to outlaw basement apartments. This in effect drove these second units back underground. Owners feared prosecution from not only safety authorities, but also local zoning regulations.
Units prior to November 16, 1995 Grandfathered
However if the unit existed prior to this date (November 16, 1995) it was grandfathered, provided it met health and fire standards. The onus is on the owner to prove that this is in fact the case and can be accomplished through the production of rent receipts, presence of tenants on voters list, or in some cases the signing of an affidavit from the municipality.
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