Q & A
PREPARING FOR CLOSING DAY
Flavia Zancope is the lead at Zancope Notary Public strategically located in Langley. Her team is dedicated to providing clients with advice in all areas of real estate transactions, estate planning, preparing or modifying a Will, and a wide range of notary services.
Q 1. What can I expect at the appointment to sign my new Mortgage?
You can expect a team of friendly and experienced professionals who will treat you like family. At your appointment, one of our Notary Publics will explain what your lender requires in the event there are additional conditions specific to the Approval as well as answer any questions you may have. We will review the specific terms of your mortgage loan with you and in the event of a purchase of a home will advise you of the exact amount required by you to satisfy the requirement of down payment and closing costs.
Q 2. What documents should I plan to bring with me?
You will be required to provide two pieces of government-issued identification both of which include your photograph. The most common examples are a provincial driver’s license and passport. In the event of a name change, you will be asked to provide additional documents.
Q 3. What are the differences between legal fees and disbursements?
Legal fees are what are charged to conduct the service you require. Disbursements are additional costs that are incurred to register Title, pay out your personal debts, request strata documents, or courier documents to a lender.
Q 4. What is Title Insurance?
Title Insurance protects the lender and you against a situation that arises in the future that was unforeseen such as financial fraud or where alterations were made that did not respect the boundaries of the property.
Q 5. What are the most common types of title registration?
The two most common types of registration are Joint Tenants and Tenants in Common.
Joint Tenants is where one person passed, and the interest of a deceased owner automatically gets transferred to the remaining surviving spouse. Tenants in Common is where the interest of a deceased owner gets transferred to their beneficiaries in accordance with the deceased Will.
Q 6. I have purchased a home, how do I transfer my down payment to you?
The down payment by the lender is the percentage of the purchase price of the home. Typically, this consists of a pre-determined Deposit, held in Trust by the real estate office, and the balance from your qualified savings. The Deposit in Trust will be transferred to us in advance. You will be required to provide us with a bank draft for the balance.
Q 7. What is the difference between a Notary Public and a lawyer in BC?
Although BC Notaries and lawyers both deal with legal matters, BC Notaries do not represent clients in court and do not get involved in litigation or family law or agreements, including separation, divorce, adoption, or child custody. In real estate, BC Notaries pass the same real estate bar exam as a lawyer to conduct real estate transactions.
Q 8. What does a typical conveyance process include?
The process involves more than what most people imagine. Purchase or refinance can take 30-60 days to fully complete and includes requests for third-party forms such as insurance and strata documents, confirmation from creditors that payment has been received, confirmation from the lender that the mortgage has been closed, and delays waiting for confirmation from Land Title office and completed the new registration.
Q 9. I am a first-time home buyer, do I pay property transfer tax?
There is a benefit if you have never owned a property anywhere in the world at any time. You may be entitled to a property transfer tax exemption as described by the provincial government.
Q 10. I am purchasing a home, what Costs am I responsible for?
Any costs that the solicitor/ notary incurs including strata documents, insurances (binder and title), the legal rep’s account, and any adjustments such as property transfer tax, property tax adjustments, strata fee adjustments, holdbacks (if applicable). These costs are outlined in detail on the Statement of Adjustments.
Q 11. What is Property Transfer Tax, and how is it calculated?
Property Transfer Tax is a provincial tax incurred any time property is purchased. The tax is calculated based on the contract purchase price, in most cases the Fair Market Value.
For residential purchases the Property Transfer Tax is calculated:
1% on the first $200,000 of the property’s Fair Market Value
2% on the amount between $200,000 and $2,000,000
3% of the remaining Fair Market Value.
Q 12. Do I have to pay GST on my home purchase?
GST applies to the purchase price of new homes or substantially renovated homes but does not apply to used homes purchased.
Purchasers of new homes can expect to pay a tax of 5% but in many cases will receive a rebate. A complex calculation is applied to determine the total rebate.