Gratuitous Transfer Fee Quote
FEE QUOTE FOR TRANSFER OF TITLE OF RESIDENTIAL PROPERTY
Our closing costs for real estate transfer of title as set out herein is provided to you as an estimate only, errors and omissions, excepted. With third party service providers increasing their prices at short notice or with no notice, it has become quasi-impossible for us to give you the usual "all inclusive" pricing for a real estate closing. Nevertheless, as usual, we endeavor to work with you to keep closing costs as reasonable as possible.
In order to provide you with an appropriate fee quote, we require that you review the following and provide us with the information we need to determine the applicable charges and to assess if land transfer tax will be payable or not on the transfer of title.
Type of Transfer and Land Transfer Taxes: Please advise if the purported transfer is a transfer for (1) nominal consideration (a $1.00 consideration), is a gift or involves an exchange of funds. Please advise if the transfer qualifies as an “exempt transfer” for land transfer tax purposes (e.g. trustee to beneficiary, qualified spousal transfer, etc): https://www.ontario.ca/document/land-transfer-tax/transactions-nominal-consideration.
Is the property subject to a mortgage: Please note that if there is a mortgage on the property, you are not authorized to transfer title without the approval or consent of the existing lender. You may wish to first contact the Bank and have the lender approve the change of name on title. Your lawyer cannot transfer title to the property without the bank’s consent as that would constitute a default by the title holder under the mortgage terms, which may trigger a power of sale. Please note that if the transfer is done without the bank's consent, the person/s whose name/s was/were removed from title will remain liable for the entire mortgage, notwithstanding that the person’s/persons name/s was/were removed. Our fees for discharging any mortgage on title is $495.00 + H.S.T plus disbursements per mortgage. A customized fee quote may be required.
Our fees for preparing a new transfer/deed is $995.00 plus H.S.T plus disbursements such as $83.11 registration fee payable to the Minister of Finance, executions, title search fee, etc.
NON-RESIDENT SPECULATION TAX
Effective October 25, 2022 the Ontario government imposed an additional 25% tax known as the non-resident speculation tax (NRST) for purchase of properties without any geographic limitation. This tax applies to foreign nationals or foreign corporations. We will be required to file appropriate information in this regard on your behalf: https://www.ontario.ca/document/land-transfer-tax/non-resident-speculation-tax. A fee of $95.00 inclusive of H.S.T will apply to file the Prescribed Information for Purposes of section 5.01 Form (the “PIPS”). Where a Buyer is a non-resident, kindly be advised that additional legal fees in the sum of $395.00+H.S.T will apply to process N.R.S.T applications.
BAN ON PURCHASE OF RESIDENTIAL PROPERTY BY NON-CANADIANS
The Prohibition on the Purchase of Residential Property by Non-Canadians Act (the “Act”) prevents non-Canadians from buying residential property in Canada for 2 years starting on January 1, 2023. The ban prohibits foreign buyers from purchasing land, condos, single-family homes, or very small buildings in metropolitan areas of at least 100,000 people. https://news2me.crea.ca/2022/september-2022/what-you-need-to-know-about-the-prohibition-on-the-purchase-of-residential-property-by-non-canadians/
VACANT LAND TAX – “UNDERUSED HOUSING TAX”
The Underused Housing Tax is an annual 1% tax on the ownership of vacant or underused housing in Canada that took effect on January 1, 2023. The tax usually applies to non-resident, non-Canadian owners. In some situations, however, it also applies to Canadian owners. It is important to be aware of the status of the property, if you are a purchaser. The tax is a “municipal property tax”. Just like unpaid property taxes, it follows the property not the previous owner. Our Legal Fee to secure a clearance in your favor on account of the Underused Housing Tax is $149.00 plus H.S.T
Required Information and Deliveries: In order to proceed we will require the following information and deliveries:
• copy of Transfer/deed of the subject property
• If property is a condominium unit, please advise how many lockers and parking units are being transferred
• spousal status of each Transferor and names of his/her/their spouse/s
• copy of lender's approval letter addressed to our firm for change of title, if property is mortgaged
• if the title will be held by more than one new Transferee, whether such title will be held jointly or as tenants-in-common and if tenancy will be in common, then the percentage of interest each Transferee will hold in the subject property
• copy of property tax/water bills showing proof of payment of taxes/water
• copy of last mortgage statement/s from the bank/s, if property is mortgaged
• information as to whether the new Transferee/s will require that title be title insured
• confirmation that the property is insured against all risks
• confirmation that there are no known judgments, executions, court orders against the Transferors and the property
• two pieces of valid identification (passport, driver's licence and citizenship cards - N.B. Health card is not an acceptable I.D.) for each transferor/s and transferee/s and consenting spouse/s
• Confirmation that the Property is not an Underused or Vacant Property and subject to the new Underused Property Tax Act and taxable
• Confirmation that the Transferor/s is/are not a Non-Canadian Resident/s
• Confirmation that the Transferee/s is/are not non-Canadians and not subject to the Non-Canadian 2 year purchase ban
• Please advise if the Transferor/s have executed a Will in relation to the Property and if yes, copy of the Will
• If the Transferor/s is separated, copy of the separation agreement or if divorced, copy of Divorce Order
• Confirmation that the Transferor/s have not filed for bankruptcy or intend to file for bankruptcy
Independent Legal Advice: Please note that under the new law society rules, the solicitor cannot act for both the transferor and the transferee. We will generally require that the transferor seeks independent legal advice to confirm that the transferor is not being coerced to transfer title to the new owner and that the transferor understands the nature of the transfer. ILA charges are to be paid directly to the solicitor acting for the transferor or transferee and ranges between $250.00 +H.S.T to $500.00 +H.ST. depending on the nature of the transaction and the years of experience of the solicitor acting for the transferor/transferee
Trust Agreements: If the title transfer is from Trustee to Beneficiary, an additional charge of $195.00 plus H.S.T shall apply for the preparation of the applicable trustee to beneficiary affidavits as required by the Ministry of Finance.
Gratuitous Transfers for Nil Consideration: We are assuming the names of the new transferee/s is/are being added for nil consideration. If there are monies being exchanged, please advise immediately. There will be land transfer payable on the transfer based on the percentage of interest being given to the new transferee/s and based on the amount of mortgage being assumed. For an estimate of land transfer tax payable advise as to percentage of interest being given to the transferee (if 100% or less) and amount of existing mortgage registered on title if any. If there is no mortgage, please advise as to current market value. We will need a copy of the MPAC assessment for the current year for the property if the transfer is not for love and affection.