DEPOSIT
The deposit is part of the purchase and sale agreement and typically it is about 1% of the purchase price of the home. This money is held in trust by the listing brokerage of the property. During the conditional period of the home purchase this money is protected and if any condition cannot or you are not willing to waive a notice of termination signed by all buyer and seller, the buyer is released from the contract and the deposit is returned without interest. Once all conditions have been waived and between the time of becoming an unconditional sale and closing day if the buyer does not complete the sale the deposit could be lost and also be sued for breach of contract. The deposit is subtracted from the closing day adjustments.
CLOSING DAY ADJUSTMENTS
This is the term that refers to all other monies needed for the day of close. It is made payable to the lawyers and must be a certified check or bank draft. The total is comprised of: Deed Transfer Tax: This is a tax levied by the city of Halifax and payable via the buyer’s lawyer on the day of close. The amount is 1.5% of the purchase price. Down Payment: The minimum down payment to purchase real estate in Canada is 5% if your purchase is your primary residence or recreational property. Property Taxes: Property taxes are paid six months in advance due twice a year, once in April and once in November. On closing day, the adjustment is made for the amount the Seller has already prepaid to their financial institution. It is good practice to budget for the full six-month period. On new construction there may not be a tax amount levied yet on the
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