First Time Buyers

BC Notaries Provide Guidance to First Time Buyers on
Real Estate Transfer Process

____________________________________________________________________________

New Mortgage Regulations Driving Increased Purchases –

Proper Conveyance Always Important

FOR IMMEDIATE RELEASE March 15, 2011

Vancouver, BC—The Society of Notaries Public of BC is encouraging first time buyers – and all home purchasers and sellers – to ensure their real estate transactions are properly and thoroughly executed and documented, by understanding the key requirements.

“Spring is always a busy season for real estate transactions, but I’m hearing that Notaries all through BC have seen an increase in first time home purchases over the last few weeks. This seems to be driven, at least in part, by the new regulations for mortgages which take effect later this week on March 18th,” said Wayne Braid, Chief Executive Officer of the BC Notaries.

Among other changes, the new regulations will reduce the maximum amortization period on mortgages backed by government insurance to 30 years, from 35 years. While this move will make monthly payments higher it is part of an overall effort to ensure manageable debt load – particularly for first-time home buyers but for all home owners across Canada.

“Buying your first home is a very exciting, significant and emotional milestone,” said John Eastwood, President of BC Notaries and a Notary Public in Delta. “It’s natural to be more interested and inspired by square footage, layout, neighbourhood and finishings than conveyancing, insurance and strata regulations. That’s why it’s so important to recognize the importance of the transaction and documentation process and to work with a legal professional who’s qualified and experienced - so this most important purchase is protected.”

The key documents and processes for the purchase of a home or condo typically cover the following areas, and will vary depending on various details of the transaction:

· Mortgage documents – related to borrowing and securing funding from a lender

· Title search – ensuring the property is owned by the “seller” and unencumbered

· Insurance documents

· Strata documents and forms (for strata properties) – determine any special assessments, fines, penalties or fees outstanding; confirm strata fees, preparation of necessary forms

· Arrange and secure deposits and transfer funds to lender and/or purchaser

· Property transfer and confirmation

“Many first time buyers focus their planning, time and financial resources on finding the right property and negotiating a fair and manageable price without understanding the related basic documentation and adminstration required, or the associated costs,” said Eastwood

The costs, beyond the purchase price of your new home, might include:

• Site survey
• Home inspection
• City/municipality property taxes due
• Local utilities due (water and sewer)
• Property Transfer Tax
• Legal fees
• HST

For more information about the purchase and conveyance process, talk to a legal professional. To find a notary almost anywhere in British Columbia, please visit www.notaries.bc.ca.

The Society of Notaries Public of BC represents more than 320 highly trained Notary professionals. Most have locally owned and operated offices and all provide personal assistance to clients around the province. Individuals, families, and businesses seek the services of BC Notaries for a wide range of non-contentious legal matters, including residential and commercial real estate transfers, mortgage refinancings, Wills and estate planning, powers of attorney, and other important documents.

The Notary’s Tradition of Trust spans 2000 years. Notaries first came to British Columbia over 100 years ago. They continue to serve their valued clients and their communities across the province.

For more information, please visit notaries.bc.ca.

-30-

Local Notaries are available in most areas of BC to discuss real estate transactions and conveyancing. To reach them or for more information, please call:

Karen Cook

604 551-9074

karen@cookpublicrelations.com

What happens if I don't have a Will?

I am often asked that question by my clients. It is usually followed by the question; "Does the government get it all?"

As long as you have a surviving spouse, surviving descendants or relatives then the government doesn't "get it all" and in fact Government of the Province of British Columbia has made provision for the distribution of your estate in the event you die without a Will. The legal term for dying without a Will is dying "intestate".

As of the writing of this post, the legislation that determines the distribution of assets if you die intestate is the Estate Administration Act. The Government of British Columbia has passed new legislation that is expected to come into force later this year (2011) which amalgamates several existing statutes, including the current Estate Administration Act, into one new statute, Wills, Estates and Succession Act, S.B.C. 2009 C. 13 (the WESA).

The new legislation does make several changes to the current provisions for intestate distribution. As with the current legislation, if a person dies without a Will and leaves a spouse but no surviving children, the estate goes to the spouse. If a person dies without a Will and leaves a spouse and surviving descendants then under the new legislation the spouse is to receive the following:

- the household furnishings
- if the surviving children are descendants of both the deceased person and the spouse then the surviving spouse receives the first $300,000.00
- if the surviving children are not common to both the deceased person and the spouse, then the spouse receives the first $150,000.00
- in either case above, the remaining estate, if it is more than the spouse's share is divided one half to the spouse and one half in equal shares to surviving children of the deceased person.

WESA, like the current legislation also makes provision for the distribution of an intestate estate if there are two or more spouses entitled to a share of the estate, (for example, the spouse you are married to and the common law spouse you live with ) and the division of the estate if you die without a spouse but leave surviving descendants or relatives.

This is a very simplistic summary of the proposed legislation and if you do not currently have a Will and want to know more about how the new legislation will affect your estate and your family you should make an appointment with your Notary Public or your Lawyer to review your estate plans.

Memory-a spoof by Pam Peterson

Maturity Matters Newsletter

Every so often a training opportunity becomes available that can truly make a difference in the way that services are offered in our community. I have completed such a program offered by Age-Friendly Business®, and have successfully earned the designation of Certified Professional Consultant on Aging (CPCA)®.

This course was unique in that it addressed the health, social, and financial aspects of aging. We covered over 24 different topics ranging from Retirement, Chronic Illness, Housing, Alzheimer Disease, Ethnocultural considerations of aging, Senior Nutrition and Fitness, Caregiving and Long-term Care, Canada’s Health Care System, Estate Planning, End of Life Planning, Canada’s Income Security Programs and so much more. I know that the information that I learned will make a difference in my business and personal life, and I look forward to regularly sharing information with you about some of the interesting and important issues we face as we navigate the years ahead.


Please follow this link to access the current CPCA newsletter.

Home

"I'm going home". One of those simple statements that is saturated with meaning.

Home is where the heart is.

A man's home is his castle.

Home Sweet Home.

There's no place like home.

I am sure you could add to this list!

Even the phrase "running away from home" is heavy with emotion and you know there is a story attached!

Our home and where we choose to live is such a mirror of who we are and what is important to us. We pick our neighborhoods to match our life style. Urban settings speak something totally different than rural country living. Even in the urban areas, single family homes close to schools and parks tell a different story than a life lived in a compact condo close to shopping and theaters.

What do you look for when shopping for a new home? For me the kitchen is the most important space. I love to cook and entertain family and friends and having space for guests to sit and visit while food is being prepared, or even better, enough space for everyone to pitch in and help is vital. Having the kitchen open onto an outdoor space with room for alfresco dining and access to a garden full of fragrant herbs and fresh veggies is the ultimate!

Whatever you are looking for in a new home, this purchase is one of the most important and probably biggest investment you will make. Not only is it significant financially but moving usually is the result of a major change in your life. Your first purchase on your own, your first home together as a couple, a change in employment, needing more space for a growing family and even downsizing as life circumstances change all add to the emotional nature of the transaction.

One of the most rewarding things I do as a Notary Public is help my clients through the legal aspects of this purchase.

The process includes:

- review the Contract of Purchase and Sale prepared by the Realtor, or help the purchaser prepare the contract in a private purchase

- search the title of the purchase property and discuss the charges such as easements and building schemes that are registered against the property with my clients

- receive mortgage instructions from the client's lender and prepare mortgage documents for signing and registration at the Land Titles Office

- prepare the transfer and supporting documents that will register the transfer to the new owners and send them to the legal representative of the sellers for signing

- receive mortgage and down payment money into my trust account and disburse those funds to complete the purchase

- register the transfer and mortgage documents at the Land Title Office.

The best part is when I call my client and say; "Congratulations! You have a new Home!".

Getting There

It is interesting talking to clients and acquaintances about their perceptions of what a Notary Public does and the requirements to become a member of this profession.

As I said in my previous post, Notaries in some jurisdictions just "notarize" documents and many people are surprise to find the scope of legal services we provide under the Notaries Act in British Columbia. The Society of Notaries Public of British Columbia takes its responsibility to the public very seriously and consequently hold its members to a high standard, both in the areas of education and professional performance. The Society's Constitution and Bylaws are approved by the Attorney General of the Province and we function under a strict code of Ethics and Professional Conduct and Rules.

The process of becoming a Notary is outlined on the Society website and can be found here. It begins with an application and screening process by the Society. Successful applicants who are "Approved-in-Principle" must complete the Master of Arts in Applied Legal Studies (MAALS) degree at SFU which includes the Statutory examinations required by the Notaries Act. The final step is taking the oath of office before a judge in the BC Supreme Court.

So what exactly is a Notary anyway?

Notaries have a long and distinguished history dating back to 1700 BC where they laid down the oldest evidence of recorded law, the Codex Hammurabi or The Code of Hammurabi. The Code, written by the Babylonian King Hammurabi, laid out 282 laws a translation of which can be found here.

In Ancient Rome, where they were called scribae ("scribe"), tabellius ("writer"), or notarius ("notary"), the role of the Notary was to provide legal assistance, authenticate documents and keep official archives. As the Roman Empire declined, the role of the Catholic Church increased in society, developing an administrative nature. Many of the clergy found it helpful to retain the service of a Notary and as a consequence, the Vatican became responsible for the appointment of Notaries.

Today Notaries are found practicing in many countries. There are two distinct types of Notaries; civil-law Notaries (also called Latin Notaries) , and common-law Notaries Public. Civil-law Notaries are lawyers who practice in an area of private law concerning transactions between individuals as opposed to law involving the State (for example criminal law). Their areas of practice include residential and commercial conveyancing and registration, contract drafting, business engagements, transactions, successions and estate planning and powers of attorney.

In common-law jurisdictions a Notary Public is a practitioner trained to draft and execute legal documents. The role of the Notary varies widely from place to place and the use of the word "Public" points to the fact that Notaries are appointed to position by a governing authority to provide a service to the public. In most provinces in Canada and in much of the US, Notaries Public are restricted to administering oaths, witnessing signatures on affidavits and statutory declarations, providing acknowledgments, certifying true copies etc. Quebec does not have Notaries Public, only civil-law Notaries.

British Columbia is unique in Canada (outside of Quebec), indeed in North America, in the extensive area of law that we practice in. We are appointed by the Supreme Court of British Columbia and governed by the Notaries Act ,and the Society of Notaries Public of British Columbia providing non-contentious legal services such as:

• Affidavits for All Documents required at a Public Registry within BC
• Authorization of Minor Child Travel
• Business Purchase/Sale
• Certified True Copies of Documents
• Commercial Leases & Assignment of Leases
• Contracts and Agreements
• Easements and Rights of Way
• Estate Planning
• Execution/Authentications of International Documents
• Health Care Declarations
• Insurance Loss Declarations
• Letters of Invitation for Foreign Travel
• Manufactured Home Transfers
• Marine Bills of Sale and Mortgages
• Marine Protestations
• Mortgage Refinancing Documentation
• Notarizations/Attestations of Signatures

• Passport Application Documentation
• Personal Property Security Agreements
• Powers of Attorney
• Proof of Identity for Travel Purposes
• Purchaser's Side of Foreclosures
• Representation Agreements
• Residential and Commercial Real Estate Transfers
• Restrictive Covenants and Builder's Liens
• Statutory Declarations
  
• Subdivisions and Statutory Building Schemes
• Wills Preparation
• Wills Searches
• Zoning Applications