TITLE INSURANCE
Every transaction we handle is title insured through First Canadian Title Insurance Company. Title insurance is generally cost neutral and provides you with better protection than the previously conducted zoning and building compliance searches.
Whether you are a new homeowner or if you have owned your home for years, title insurance will offer you peace of mind that you can count on. What does "title" mean?
When you buy a home, you are buying the title to the property. It is sometimes also referred to as a deed. This means that you own the property and your lawyer registers you as the owner in the land registry system.
Having "good title" to your property is important because it protects your investment so that you will be able to sell your property in the future or obtain financing, such as a mortgage, against your home, if needed.
What is title insurance?
Title insurance is unlike any other kind of insurance. It is not house insurance which only protects the contents of your home or its structure and for which you have to pay a monthly or annual premium. Unlike house insurance, you only pay a one-time premium with no deductible.
Title insurance is distinctive in that it protects your ownership or title against losses incurred as a result of undetected or unknown title defects, for as long as you own your home. Even if you are the rightful owner of your home, there are instances such as real estate title fraud, when your title can come into question.
Whether you have owned your home for years or whether you are purchasing a new property, coverage is available through First Canadian Title’s Platinum Title Insurance Policy. Title insurance protects your ownership to the property and protects you against:
- Fraud and forgery;
- Errors in surveys or other official public records;
- Encroachments onto neighbouring properties;
- Zoning infraction; and
- Many more known and unknown defects that could affect your ability to sell your property in the future.
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TITLE FRAUD
Real estate industry insiders now peg the average case of real estate fraud at $300,000, meaning years of personal and financial repercussions for those who fall victim. According to the Quebec Association of Real Estate Agents and Brokers, mortgage fraud amounts to an estimated $1.5 billion a year, and even though cities like Vancouver, Toronto and Edmonton are hotbeds for this criminal activity, all Canadian homeowners are at risk.
In 2000, real estate title fraud claims accounted for only 6 per cent of total dollars paid in claims at Canada’s leading title insurance provider, First Canadian Title. By 2006, that number reached 16 per cent.
Real estate title fraud can happen to anyone. It’s up to you to get informed and protect yourself.
You can have even more peace of mind when you purchase a residential title insurance policy (new or existing homeowners) with the addition of identity theft protection. Identity theft is a major concern for many citizens today. With this policy, victims are reimbursed for specific expenses and lost income arising from identity theft. Insured individuals are also provided with assistance in restoring their good credit and protection from actual losses arising from credit or debit card fraud, forgery or counterfeiting - all for a low, one-time premium. Ask us to add this coverage to your traditional title insurance policy.
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NEW CITY OF TORONTO LAND TRANSFER TAX
Land Transfer Tax Implementation
On October 22, 2007, Toronto City Council approved a new land transfer tax which takes effect on February 1, 2008.
All purchasers pay:
one-half of one percent of the value of the consideration on sales up to and including $55,000; one per cent of the value of the consideration on sales exceeding $55,000 up to and including $400,000; two per cent of the value of the consideration of land containing one and/or two single family residences exceeding $400,000; one and a half per cent of the value of the consideration on commercial properties including multi-residential units exceeding $400,000 up to $40 million; one per cent of the value of the consideration which exceeds $40 million.
Where the net revenue after transaction fees would result in revenue to the City of less than $2.00, the purchase would be exempt from the Toronto Land Transfer Tax.
Who Pays the Land Transfer Tax?
If you have purchased a property with a closing date on or after February 1, 2008 you will be required to pay the Toronto Land Transfer Tax.
If the closing date is on or after February 1, 2008 and the Purchase & Sale agreement was executed on or before December 31, 2007 you are eligible for a full rebate.
For first time purchasers:
A rebate of up to $3,725 will apply to first-time purchasers of both new and existing homes. This means a full rebate for first-time buyers of homes valued at $400,000 or less. For example, a first-time purchaser of a home valued at $600,000 would pay land transfer tax according to the scale shown above, and receive a rebate of $3,725. A first time home buyer of a home valued at $300,000 would get a full rebate on the land transfer tax.
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CONTACTING THE TAX DEPARTMENT AND UTILITIES
Since the Privacy Act was passed it has become impossible for lawyers to set up meter readings for your sales and set up your utility accounts for your purchases because the various utilities simply refuse to speak with us. They need to speak directly with you to finalize old accounts and to set up new ones. Accordingly, if you are selling you should contact all of the utilities companies at least one week prior to closing to advise them to do a final meter reading as of the closing date and tell them where to forward your final bill.
If you are buying you should call at least a week before closing to give them the information necessary to set up your new utility accounts. Although we still write to the tax department to advise them that you are the new owner it is wise for your to follow up with the tax department shortly after closing to make sure you do not miss any payments otherwise you may be subject to interest and penalties.
Below is a list of numbers for all utilities and the tax departments for various Ontario cities: |
