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Pre-Contract Negotiations

This initial stage involves reaching consensus on key aspects of the property transaction, such as the sale price, extent of the property, and any specific conditions relating to the exchange. These negotiations are conducted by the buyer and seller without direct involvement from their attorneys, although legal guidance is often sought to ensure that all relevant considerations are addressed. This stage aims to align both parties’ expectations and sets the foundation for drafting the subsequent contract of sale.

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Exchange of Contracts

Once terms have been negotiated, attorneys step in to prepare the formal documentation required to effect the transfer. The agreement for sale is drafted by the seller's attorney and submitted to the buyer's attorney for review. At this stage, the buyer’s attorney will perform critical steps such as:

Conducting a title search to ascertain the legal ownership and identify any encumbrances.
Arranging a pre-purchase inspection.
Confirming the buyer's mortgage arrangements.
Ensuring that requisite deposits (generally no more than 10% of the purchase price) are secured.
The contract exchange marks the official agreement between both parties, and responsibilities such as stamp duty payments, transfer tax, and mortgage arrangements become formally binding.

Pre-Completion Formalities

During this stage, documentation is submitted to the Stamp Duty and Transfer Tax Division for assessment. Duties, including stamp duty and transfer tax, are typically shared between both parties, while the seller is responsible for the payment of the transfer tax. If financing is involved, the buyer’s attorney will ensure that all mortgage documents are executed and recorded alongside the property’s title.

One essential aspect of this stage is the registration of the transfer with the Office of the Registrar of Titles. The title is updated to reflect the new ownership and any encumbrances, such as mortgages, ensuring the buyer's ownership rights are legally protected. Buyers may also consider title insurance during this stage to safeguard against defects or adverse claims related to the property.

Completion

Completion is a pivotal stage where legal formalities are finalized, and the property’s title is registered in the new owner’s name. Once all documents are submitted, and requisite payments are made, the buyer officially takes possession of the property. It is prudent for the buyer to conduct a final inspection prior to the formal handover to ensure that the property remains in satisfactory condition, as agreed upon during the sale.

Completion timelines generally differ based on the nature of the sale. Mortgaged transactions usually take up to 120 days, while cash transactions can be completed in approximately 60 days.

Post-Completion

Following the transfer, the buyer’s attorney finalizes the post-completion process. This includes updating utilities, notifying the tax authorities of the transfer, and ensuring that prior encumbrances have been discharged and correctly reflected on the title. The original certificate of title may be retained by a lending institution as collateral if the purchase was financed, while the buyer will receive a certified copy.