Proudly serving Northumberland residents

with competency, caring and compassion.

Phone

1 (905) 372-3395

If you are selling real property, you will need to bring the following documents and information to the lawyer’s office:

  • a copy of the Deed Transfer of Land
  • a copy of any mortgage/charge of land (including any line of credit secured by the property
  • the reference number that the bank uses to identify the mortgage or line of credit
  • the address and telephone number to reach you following closing
  • the type of heat at the property
  • a copy of the last final tax bill and the most recent municipal tax bill and receipts
  • any survey of the property which you possess

 

The lawyer’s office will be required to pay off and discharge any mortgages or lines of credit secured by the property, along with the balance of the real estate commission and any outstanding municipal taxes and penalties which were due before the date of closing. You will receive the balance of the sale proceeds after payment of these items and the lawyer’s account.

Adjustments to balance due on closing

This is the balance of the purchase price still owed to the Seller, after adjustments. Realty taxes are always adjusted. If the home is heated by oil or propane, an adjustment is also made for the fuel. With the purchase of a condominium property, there may be an adjustment for common expenses. There are usually no other adjustments to the price of a home unless you are purchasing a newly constructed home. An estimate of the additional charges to take into consideration in the case of a new home should be provided to you by the sales office.

Realty Taxes

The annual municipal property taxes on the property are apportioned between the Buyer and Seller by the lawyer’s office – not the Municipality. The Seller’s lawyer divides the total year’s taxes by 365 days, and calculates how many days the Seller will be responsible for – being the number of days they will have owned the property in the current year, and how many days the Buyer will own the property in the current year. The lawyer then has to take into consideration how much the Seller has paid towards the current year’s taxes, and the due dates of tax instalments. Any tax instalments which come due before the Closing Date of the transaction, must be paid by the Seller. This calculation therefore results in a credit to the Seller when the Seller has paid for more than actual number of days he will have owned the property. This calculation results in a credit to the Buyer when the Seller has paid for less than the actual number of days he will have owned the property.

Heat

If the property is heated by fuel oil, the Seller is obligated to have the oil tank topped up to full, prior to or on the Closing Date. The Seller is then given a credit for a full tank of oil on the Statement of Adjustments. One reason for this is that the gauges on oil tanks are not always a reliable indicator of the amount of oil in the tank. Having someone from the oil company attend to fill the tank also helps to confirm if the tank is not fit, or to old to be filled, and may need to be replaced. Propane tanks are not always topped up prior to closing, but the propane company can provide volume information to the lawyer so that the Seller can be given credit for the amount still remaining in the tank.