Real Estate Lawyer Toronto Near You
The lawyers at GK Law work hard to protect their client’s legal rights for all their real estate and business transactions. At Real Estate Lawyers – GK Law, we have over a decade of experience closing well over 10,000 transactions. We treat each of our clients as we would our family and friends, delivering warm and client focused service in Toronto and GTA.
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Real Estate Lawyer Services vs Non-Legal Service Providers
If for example, a practicing real estate lawyer makes an error or an omission when helping you close a sale, they will be obliged to compensate you accordingly. Conversely, a non-legal agent won’t be. Moreover, errors and conflicts arising after the closure of a sale or property title transfer are more common than many people realize.
Lowering the cost of a new Property Purchase
Because a real estate lawyer is acutely aware of all the risks, tax implications and legal challenges associated with purchasing a new property, real estate lawyer can actually help people reduce the overall cost of their next real estate purchase.
Where a real estate lawyer discovers an outstanding tax or lien held against a property, he or she will often persuade selling parties to reduce their asking price accordingly. In like regard, when purchasing a condo, a real estate lawyer will discover and itemize closing cost extras such as development and landscaping charges. Moreover, if these and/or any tax liabilities remain unclear, a real estate lawyer will often request that a seller agrees to cap the overall closing cost so that buyers know exactly where they stand financially.
PURCHASE QUOTE CALCULATOR
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Frequently Asked Questions
What is included in closing costs?
How much are typical closing costs for refinance?
Who pays closing costs when buying a home?
What are closing costs?
Who pays closing costs on commercial real estate?
The same as with residential, all closing costs are paid by the purchaser.
What is a cap rate in commercial real estate?
A CAP rate is a type of ‘rate of return’. In simple terms, cap rate is a calculation of annual net rents (excluding financing costs) divided by the price paid for the property. For example, rents received are 100,000, then you subtract expenses such as property taxes, management fees, insurance costs etc…but NOT the mortgage, say $60,000 leaving you with net rents of $40,000. If you paid $600,000 for this property then CAP rate is $40,000 / $600,000 = 6.67% . There are other forms of ‘rates of return’. Financing will drastically alter the rate of return. Cheap financing will greatly increase the rate of return whereas expensive financing (i.e. high interest rate loans) will result in a lesser return. Since each person’s ability to finance the property varies depending on individual circumstances, the playing field is evened by eliminating financing as a factor and comparing the value of the properties as if they were purchased for ‘cash’ (i.e. without financing). This allows for a better comparison of prices between different properties and in evaluating a property’s potential, market participants need only to refer to a CAP rate with a higher CAP rate being more beneficial to the owner than a lower CAP rate, and thus a purchaser wishes to buy at a HIGHER CAP rate and a seller wishes to sell at a LOWER CAP rate. The lower the CAP rate the greater the price must be because as previously explained, CAP rate is inversely proportional to price.
How to figure closing costs when paying cash?
How much are closing costs on a new home in ontario?
How long does it take to refinance a mortgage in Ontario?
Can a foreigner purchase property in Ontario?
What happens if the seller is a non-resident but the property is mortgaged beyond 75% not leaving sufficient proceeds of sale to be held back on closing for the 25%?
Are there any restrictions on foreigners purchasing real estate in Ontario?
Can the seller’s lawyer disburse the money to the seller by wiring it overseas?
Can a foreigner get an Ontario bank loan (mortgage) to purchase real estate in Ontario?
As a foreigner, do I qualify for the HST new housing rebate provided by the Canada Revenue Agency for the purchase of new construction?
Does a foreigner need a local bank account in Ontario if purchasing real estate?
Are property taxes any different for foreign real estate owners?
Does a foreigner need to be physically present in Ontario do open a bank account?
As a foreigner owning real estate in Ontario, do I need a Will?
Does a foreigner need to have local Ontario / Canadian identification to complete a real estate transaction.
Are there any special financial privileges or benefits to foreign buyers?
Are the costs, fees, disbursements and other expenses any different to a foreigner purchasing real estate in Ontario?
Is purchasing a property in Ontario a ticket for foreigners to a permanent resident status in Canada?
Can a foreigner qualify for a first time buyer’s credit that is given by the Ontario (and the City of Toronto) to first time buyers.
Can the lawyer retain the proceeds of sale to purchase another property for the foreigner?
Are the land transfer taxes greater or less for foreigners?
Are there any other taxes, fees or costs other than the section 116 procedure?
If a foreigner has a spouse but purchases on his name alone, does the spouse of the foreigner need to sign any documentation?
Can a foreigner be not a non-resident for tax purposes?
Can documentation be signed over skype or some other fashion such as at an embassy or a foreign notary’s office?
Can a foreigner not lie about his status as a non-resident?
Are there any restrictions on a foreigner selling real estate in Ontario?
Can you refinance when your mortgage is underwater?
How will a purchaser know if the seller is a foreigner (non-resident for tax purposes) or not?
Are there special taxes, fees, levies etc…when a foreigner (non-resident for tax purposes) sells real estate?
The procedure is as follows: When the deal comes to a closing with the lawyer, the seller’s lawyer (although the requirement is on the purchaser’s lawyer, but practice has developed such that the seller’s lawyer participates in this) will retain from the seller 25% of the sale price. For instance, if the sale price is $1,000,000, then on closing, the seller’s lawyer will hold back $250,000 from the seller and release to the seller only $750,000, less of course any mortgages, commissions etc…After closing, the seller will hire an accountant to submit to the Canada Revenue Agency a special application outlining the profits that the seller earned on this real estate. The profits are generally calculated by taking the sale price, subtracting all expenses (yes, including commissions), subtracting the purchase price and all expenses associated with the purchase price, and arriving at a final number. The Canada Revenue Agency will then assess this application and issue a certificate referred to as a Section 116 certificate. The reason its referred to as a Section 116 certificate, is because the certificate is issued pursuant to section 116 of the Canadian Income Tax Act. The certificate will be sent to the accountant and it will state how much money the seller must pay on account of the income tax. This figure will likely be approximately 25% of the profit (not the sale price). For instance, if your net profit was $200,000, then $50,000 will be payable to the CRA. The certificate will also say that upon the seller paying $50,000 to the CRA, the purchaser is free from any liabilities, because remember, the liability was on the purchaser to ensure that the seller pays his fair share of the taxes. The lawyer who represented the seller will then take $50,000 from the $250,000 that he was holding back, and pay that money to the CRA releasing the balance to the seller. The seller has 10 days to submit the application to the CRA after closing, otherwise there are very large penalties.
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