18 Questions
What is the typical range a borrower should have set aside for closing costs?
Between 1.5% and 3% of the purchase price
When is PST included in closing costs?
When there is a mortgage default insurance premium
What type of properties are subject to HST in the purchase?
New homes and substantially renovated homes
Who remits the insurance premium to the title insurer in a title-insured transaction?
The lawyer
What does an interest adjustment refer to?
The amount of interest accumulated from mortgage advance to first payment date
What purpose does the DRA serve in the closing process?
Handles client's documents and funds
What is the interest adjustment payment?
The payment to pay accumulated interest
When is the interest adjustment payment due?
On the interest adjustment date
What is a subsearch in real estate transactions?
An update of a full search prior to specific registrations
What triggers the closing process to begin?
The satisfaction of all conditions by the purchaser's lender
Who has the authority to choose the lawyer for closing a real estate transaction?
Either the borrower or the lender, subject to lender approval
What does a lender's instructions to solicitor package typically include?
Acknowledgement and Direction Instructions
Who is responsible for informing the lender about any secondary financing in a real estate transaction?
Vendor's lawyer
In a real estate transaction, who registers the discharge/cessation of mortgage?
Vendor's lawyer
Which lawyer is responsible for sending money to discharge the current mortgage in a purchase transaction?
Vendor's lawyer
What is the purpose of Form 9D in a real estate transaction?
To provide written instructions from the lender
For what purpose is Form 9E used in a real estate transaction?
To prepare a report on the investment for the lender
In which circumstances are two lawyers required in a private mortgage transaction?
$75,000 or higher mortgage amount
Test your knowledge on closing costs, including how much a borrower should set aside and under what circumstances PST and HST are included in the purchase of a property.
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