Chapter 20 - From Contract To Completion

Question 1

A VENDOR’s statement of adjustments is a CLOSING statement which shows the NET amount of proceeds to be received by the VENDOR upon completion of the transaction.

Question 2

The date on which the purchaser’s solicitor undertakes the vendor (or his solicitor) that he will pay the balance owing to the vendor upon the TRANSFER of TITLE being accepted for registration, is known as the COMPLETION date.

Question 3

A PURCHASER’s statement of adjustment is a CLOSING statement in a real property transaction which indicates the balance of CASH required for the purchaser to complete the transaction.

Question 4

A statement of ADJUSTMENTS is a closing statement in a real property transaction whose format is structured by DEBITS and CREDITS.

Question 5

What is a Conveyance

A CONVEYANCE is the process of transferring an interest in land from one person to another by way of a transfer document. CONVEYANCING usually refers to the transfer of title to land but also includes dealings such as assignments, leases, and mortgages.

Question 6

What is the adjustment date

The adjustment date is the date agreed to by both parties to a real property transaction for the adjustment of property taxes, rent, interest, and other items.

Same as the day the lawyers use to tally up the debits and credits to see who needs to pay what to whom to balance tge deal.

Question 7

A CLOSING statement is prepared for a Buyer or vendor, showing the amounts to be received and paid out in the transfer of real property. The difference between these amounts represents either the balance payable by the PURCHASER or the cash proceeds from the sale to the VENDOR upon completion of the transaction.

Question 8

A deposit paid directly from the purchaser to the vendor will appear on the vendor’s statement of adjustments.

True
The deposit would as a debit on the vendor’s statement of adjustments.

Question 9

A take-back mortgage will appear as a credit in which party’s statement of adjustments.

Purchaser

Question 10

A fixture, such as a wall or fence, which illegally intrudes or invades onto public property, diminishing the size and value of the invaded property is referred to as an ENCROACHMENT.

Question 11

This is the date on which the transaction is done (finished) The money is transferred to the seller and the land title is transferred to the buyer. This is the date RE agents get paid.

Completion date

Question 12

The day the buyer gets the keys; when they get physical access to the property.

The date which the buyer takes possession of property, subject to existing tenancy

Possession Date

Question 13

What is cutoff date fir Property Taxes?

July 1st

Question 14

Property Taxes -Already paid by the Vendor (seller). ex Seller paid 1200 and Adjustment date is Oct 23

1) Who is respondible for the taxes?
2) who owes money to whom

1/ Seller responsible
2/ Buyer respondible from Oct 23 to Dec 31.

Buyer responsible from oct 23 to December 31.
Dec - 31 days
Nov - 30 days
Oct - 9 days.
Total 70 days. 70/365 x 1200 = 230.14 on Buyers Stmt as a debit.

Question 15

Taxes not Due yet and not paid
Ex 1200 taxes and Adj date March 10.

Buyer to pay July 1
CaLculate Sellers portion. 
Jan 1 to Mar 9. 
Jan. 31 days
Feb 28 Days
Mar 9 days
Total 68 days

68/365x 1200 = 223.56. Seller owes.

Question 16

Conveyancing Fees or Legal Fees

Usually Buyer Responsible

Question 17

What is order of finalyzing the sale?

1/ Completion Date (Section 4) – This is the date when the Buyers money is transferred to the Seller and ownership of the property transfers to the Buyer. final payment paid by buyer). Land Title changed to Buyers name.

2/ Possession Date. Section 5) – Move In Day! This is date when the Buyer is officially allowed to move in. This date is usually the day after the Completion Date, but it can be any date the Buyer and Seller agree on. Most of the time the Buyer takes possession of the property at 12 Noon, but this is negotiable

3/ Adjustment Date. - Section 6) – This the date when tax and insurance liability pass from the Seller to the Buyer. Its usually the same date as the Possession Date.

Question 18

Property Purchase Tax

1% of first 200,000
2% of 200,000 to 2,000,000

Buyer pays

If not mentioned on the situation then don’t include.

Question 19

Conveyancers make closing payments based on PENDING APPLICATIONS on title in BC

True

Question 20

Completion Date. - the SELLER is obligated to transfer title and BUYER is obligated to pay the purchase price as per the Agreement

Question 21

Purchasers responsibilities starts on Adjustment date.

Property Transfer Tax

1%. Up to 200,000
2%. 200,000 to 2,000,000