Real Estate Module 8

Front 1

A Transfer of Land is a _______. Upon receipt of a properly executed Transfer of Land, the Registrar at the Land Titles Office will _______.

Back 1

document in the Land Titles Office by which the registered owners of property can transfer their interest in that property to someone else.

cancel the present title and issue a new title in the name of the Transferees (Purchasers)

Front 2

There are two steps that must be taken for transfer of land

Back 2

preparing the transfer documentation and attending upon clients for execution.

Front 3

It is the responsibility of ______to prepare transfer documentation that will have the result, upon registration at Land Titles Office, of placing the title to the property in the name of the Purchasers. The lawyer will usually prepare an ______. The lawyer will also prepare a _____ for execution by the Vendors.

Back 3

the Vendors' lawyer

Unpaid Vendors' Lien Caveat and register that Caveat against title to the property to protect the Vendors' interest

Transfer of Land

Front 4

The names of the Transferors (Vendors) will be exactly as ______. Even if there is an error on the Title or one of the Transferors has changed his or her name, the transfer documentation must describe the Transferors exactly as they are shown on title;

Back 4

shown on the current Certificate

of Title to the property

Front 5

The Transfer should indicate whether the Transferors own the property as ______;

Back 5

Joint Tenants or have an undivided interest as Tenants in Common

Front 6

The legal description on the Transfer of Land must be ______. If there is any variation or error, the Land Titles Office will ______. Accuracy is paramount;

Back 6

exactly the same as the legal description on the Certificate of Title.

refuse to register the Transfer

Front 7

The consideration is ________—usually _____

Back 7

the amount of money or other value paid by the Purchasers to the Vendors

the purchase price;

Front 8

_____ will be provided to the Vendors' lawyer by ______, who will indicate exactly ______.

Back 8

The names and addresses of the Transferees

the Purchasers' lawyer

how the Purchasers wish to be described on title

Front 9

The Vendors will sign the Transfer of Land, usually in _____.

Back 9

the lawyer’s office in the presence of a witness

Front 10

The witness completes ______ attached to the Transfer. By this Affidavit, the witness swears that ______. This Affidavit, as you can expect, drastically reduces ________;

Back 10

the Affidavit of Execution

the Transferors were the proper persons to execute the Transfer of Land

any chance of forgery or fraud

Front 11

The Vendors will certify that they are _____, or as Canada Revenue Agency (CRA) likes to put it, “______”;

Back 11

residents of Canada

not non-residents

Front 12

______ is included but left blank, to be completed and sworn by _______;

Back 12

The Affidavit of Transferee

one of the Purchasers or their lawyer

Front 13

If the Transferor is an individual owner and there is only one registered owner on Title, _____ will need to be dealt with. This is accomplished either by ________, or by _________. Note that, since the Land Titles Office requires that the spouse sign ______, and the computer forms usually _____, we always have the spouse also ______;

Back 13

dower

Dower Affidavit swearing as to the reason there is no dower rights that attach to this property

Consent of Spouse executed by the non-owning spouse, to which the Certificate of Acknowledgement by Spouse is attached

on the same sheet of paper as the Transferor signs

produce the Consent of Spouse on a separate page

sign on the first page of the Transfer of Land

Front 14

If the registered owner is the personal representative of an estate, then that personal representative (executor or administrator) will need to _____. If there are infants with an interest in the estate, then the Vendors' lawyer will need to ________.

Back 14

swear the Affidavit of Executor and the Affidavit re: Infants

obtain a consent to the Transfer by the office of the Public Trustee

Front 15

The Vendors will attend at the lawyer’s office ______ to execute all of the documentation. At that time, the closing procedure will be reviewed with the clients so that they are aware of what is transpiring. The clients will be asked to confirm that the _______, and instructions will be taken about forwarding to the Vendors the proceeds of sale, either by cheque to the Vendors or direct deposit to the Vendors' bank account.

Back 15

at least two or three weeks before the closing of the transaction

mortgage payout statement and the balance of the realtor's commission appears to be in order

Front 16

A Statement of Adjustments is prepared by ______. It adjusts various items prepaid by the Vendors, or paid later by the Purchasers, to reflect the amounts paid by each party. Items are included on the statement only if _______. Items subject to adjustment are listed in one of two columns depending on whether they are a credit to the Purchaser or a credit to the Vendor.

Back 16

the Vendors' lawyer and sent to the Purchasers' lawyer

they affect both the Vendors and the Purchasers

Front 17

cash to close is _______. The cash to close is calculated so as to make ______.

Back 17

the amount of money the Purchaser has to come up with to close the transaction

the Purchasers' credits and the Vendors' credits equal

Front 18

The advantages to the Purchasers of assuming a mortgage are that the ______ and the Purchasers _____. A disadvantage is that the

Back 18

Purchasers do not have to qualify for the mortgage,

do not have to go to the expense of placing a new mortgage on the property

Purchasers take the mortgage as it is, and the principal amount of the mortgage, the interest rate, or the term of the mortgage may not be advantageous to the Purchasers.

Front 19

What is a mortgage tax account and how will this affect the Statement of Adjustments?

Back 19

Sometimes the owner of the property pays an additional amount to the mortgage company on account of taxes on the property, and the mortgage company undertakes to use that amount to pay the taxes on a yearly basis. The Mortgagee (mortgage company) will keep that tax portion of the payment in a separate account and use those funds to pay the taxes at the end of June.

Where that is the case, there will be an adjustment on the Statement of Adjustments. The tax adjustment is done in the usual way, and then the Vendors are given credit for the amount that they have paid into the mortgage tax account. In effect, the Purchasers are buying that money from the Vendors.

Front 20

How rental situation affects Statement of Adjustments