Buying or Selling a Home in Saskatchewan

Residential real estate transactions in Saskatchewan have changed substantially since 2001. In that time the Land Titles system has been computerized, and is now known as the Information Services Corporation, or "ISC". As well, real estate brokerages in the province have re-written and standardized the forms real estate agents use when completing an Offer to Purchase. The Law Society of Saskatchewan has also been active in establishing standardized conditions and terms for lawyers to use when completing residential real estate deals.

The result of all of these changes has been improved and standardized service. There continue to be occasional problems, and the initial experiences with ISC were often challenging. As the systems and processes have matured however, residential real estate in Saskatchewan is generally a straight-forward process.

Selling

Before you begin, do some preliminary work. Find your Surveyor's Certificate. If you live in a condominium, pull out your copy of the bylaws, and your copies of the latest financial statements and budget. This is information which your realtor, or any buyer, will want. Finally, consider having local utility providers do a line location so you can provide an assurance that there is nothing built over an area that should be clear.

When entertaining offers, you want to receive as much as possible as a down payment. It should be provided to your lawyer to hold.

One area that can be confusing is to determine what is included in the sale. The starting point is that anything which is permanently affixed to the lot or house is included in the sale. There are some strange items, like central vac. The canister must stay because it is bolted down, but the hose and power head are not bolted down. These kinds of things should be covered in the offer. As well, if there is anything that is fixed to the house that you do not want included, you should either remove it before the house goes up for sale, or you must mention in the Offer/Counter-Offer that it is not part of the sale.

Once an Offer to Purchase is accepted and conditions are met, your realtor will provide a copy of the Offer to Purchase to your lawyer. The lawyer will obtain copies of title, a payout amount on your mortgage, and will prepare the necessary documents. There are only a few signatures involved.

Your lawyer provides the land transfer which you sign to the lawyer for the purchaser. The purchaser's lawyer submits that transfer, along with the mortgage of the purchaser, to ISC for registration. Depending on when documents are signed, it is possible (and often likely) that the transfer will not have been registered by the date of the purchaser's possession of the property. The Law Society's uniform trust conditions allow possession to take place, however the seller should know that they will not receive the sale proceeds until title has transferred and the purchaser's mortgage company has advanced the mortgage. That could take anywhere from a day to a couple of weeks from the date of possession, depending upon when documents were signed, and how far behind ISC is in terms of completing registrations. Their normal time period for processing appears to be in the 3 - 7 day range and depends heavily upon the time of year. During the winter there are times where ISC is completing registrations in one day.

Buying a Home

Once you find the house or condominium you want, it is time to make an offer. Sit down with your realtor and start the negotiation. One of the considerations is what you want for "extras".

As mentioned above, anything that is permanently affixed to the property is included. Are the appliances to be included? Make the offer and provide a down payment that you can afford.

If you are buying a condominium, the vendor must be provided with copies of the condominium corporation's financial statements, bylaws, budget, proof of insurance and an "estoppel certificate". You should review the bylaws to make sure that there are no provisions which are a problem for you. The financial statements and budget are to ensure that the condominium corporation is financially sound and has adequate reserves for repairs. The "estoppel certificate" is a document from the condominium corporation providing assurances about the condominium fees, any special assessments or any known problems.

If you are buying a house, you want a copy of the surveyor's certificate. Normally, there is one in existence and it can be obtained from the vendor or their mortgage lender. Your lender may not be willing to accept an old copy if there have been changes, such as a garage or an addition to the house, but you should get a copy of whatever exists.

Once you choose a lawyer you need to let your real estate agent and your lender know who that is. They will provide instructions to the lawyer you choose. That lawyer will prepare the mortgage documents, and will handle getting title into your name. The process is done through the exchange of documents between your lawyer and the lawyer for the vendor, described above. Some provinces require a separate lawyer to prepare your mortgage. In Saskatchewan, the same lawyer generally prepares the mortgage, and acts for the purchaser to arrange for the transfer of title to the land.

Costs

Registration costs for transfers and mortgages are set by ISC. The cost to register title in the name of the purchaser is 0.3% or $3 per thousand of value of the house. As an example, on a $150,000 house, the purchaser will pay $450 to have title placed in their name. Mortgages are subject to a $150 registration fee, as long as there are four titles or less involved. These are not the legal fees. These costs are charged by ISC (Land Titles) and are payable by the purchaser.

There will be other costs for things such as property insurance, mortgage application fees, appraisals and home inspections.

Legal fees for real estate work in Saskatchewan vary substantially between locations. When choosing a lawyer you should ask for referrals from friends, your realtor and your banker. You should then phone around and choose a lawyer you feel comfortable with. You should check the legal fees, but it is strongly suggested that you should not simply take the lowest fee. Make sure the lawyer you choose has a strong real estate background and is known to be good at what they do. Sometimes the low fee causes you to get what you pay for. This transaction is one of the biggest most people ever make, so be careful and don't cause yourself a problem for a small reduction in legal fees.

Whether buying or selling, do your homework. Deal with a realtor, mortgage lender and lawyer that you can develop a relationship with, and ask them for advice on how to proceed. Once you have that advice, make your own decisions, based on your needs. If you take those steps, your real estate experience is likely to be a satisfying one.