Kormans LLP

In this blog post, we will cover in further detail some of the other key items that are important to consider when accepting HST indemnity from the Buyer for the HST self-remittance.

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There is an all-too-common misconception by some Buyers and even by some Buyers’ professional, licenced realtors that the time period for the delivery of a Deposit pursuant to a resale Agreement of Purchase and Sale (APS) effectively provides the Buyer with a cooling-off period. The mistaken belief is that the Buyer has until the time and date specified in the APS for the delivery of the Deposit to have Buyer’s remorse for whatever reason and therefore elect to terminate the APS by not delivering the Deposit.

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Starting with the costs to close the real estate transaction, a purchaser should be speaking with their realtor and mortgage broker as early in the purchase process as possible. Don’t be afraid to create a closing budget even before putting in an offer on a property. In fact, making the closing budget early on will help a purchaser better understand their financial abilities and constraints in being able to afford a particular property. Between the cost of the property, land transfer tax(es), title insurance and lawyer closing costs, a purchaser should have the financial information handy as to how much monies a lender will lend them on a particular property, and the source of the remaining funds available to the purchaser in order to complete the transaction. Translation in English: Make sure you have enough money available to comfortably close the purchase of a real estate property before deciding to buy it!

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