First Time Buyers

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

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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.

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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.