Commercial Purchases and Sales
The cost of purchasing a piece of commercial property is generally greater than the price of the property itself. A lawyer can help with many aspects of property buying that will help you avoid additional costs in the future. Your lawyer can check the Agreement of Purchase and Sale for problems, certify title, check for municipal taxes, arrange a mortgage, arrange the transfer of title and funds, and protect you legal interests in every aspect of purchasing or selling your property.
Checking the Agreement of Purchase and Sale for Problems
One of the major problems in the Agreement of Purchase and Sale are conditional clauses. In the majority of cases, the Agreement contains some sort of clause that starts “This contract is subject to…”. If your Agreement is subject to anything being done, it is important that you understand what your responsibility is under the Agreement. For example, it is likely that your Agreement is subject to your being able to arrange a mortgage. The Agreement usually allows you a limited number of days to arrange this mortgage. If, for any reason, a mortgage cannot be arranged and you have not provided proper notice, you may be forced to buy the property, or you may find yourself in a lawsuit, or you may forfeit the deposit.
Searching and Certifying the Title
Your lawyer searches back over a period of time, usually from forty to sixty years, to ensure that there is a chain of title showing the ownership of the property to be properly in the name of the person from whom you are buying the property. This search is made at the Registry of Deeds. Your lawyer will read all the deeds, mortgages, wills or other documents pertaining to the property. In these searches, your lawyer will discover certain discrepancies in the title such as judgments, outstanding mortgages or incorrect conveyances. Your lawyer can most often work out these matters and clear the title in cooperation with the Seller’s lawyer.
The search of title will also indicate whether or not the property is subject to restrictive covenants, easements or right of ways.
New Land Registry System
As of December 1, 2004 any property sold in the Halifax region must be transferred or ‘migrated’ into the new Land Registry System. This one time transfer can be done by either seller or purchaser but must be concluded by time the property closes. If the land has already been migrated into the new registry system the actual title search done is much quicker resulting in a savings to both parties.
Arrange the Transfer of Title and Funds
On the closing date, the Seller will provide the deed to the property and keys to the premises. Well in advance of closing, your lawyer will advise you of the amount of money you will need to complete the transaction. After the deed is received, the Seller is paid and your lawyer will take care of registering your deed at the Registry of Deeds and any other necessary documentation.
Land Registration
As of March 2005 all counties in Nova Scotia have switched from the traditional names-based land registry system to a modern electronic database. The new system allows users to access Nova Scotia’s land registry online and guarantees the ownership of properties which have been converted to the system. Properties must be “migrated” from the old system to the new electronic system and this involves a final full title search of the names-based registry being performed in order to guarantee the person listed is the owner and has good title to the property. The information is then submitted electronically for approval by government officials.
Properties must be migrated any time they are transferred for value but mortgages, subdivisions resulting in three or more parcels of land and new condominium developments all require mandatory conversion to the new system. The seller typically assumes responsibility for having the property migrated. It is important to remember that the land registry system does not certify that any dwellings which may be on the property are within the boundaries of the lot.
Residential Purchases and Sales
This section is currently being developed. Please check back soon. Thank you.
While care has been taken to ensure the information contained herein is accurate, the information provided is based upon the laws of Nova Scotia and is supplied for general interest purposes only. It is not intended, nor should be considered to be specific legal advice or opinion.
Last Revised by Marsha Curry, July 16, 2007.