When is the House-Tittle set?
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Thread: When is the House-Tittle set?

  1. #1
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    When is the House-Tittle set?

    Hi Folks,

    I've purchased a house with a partner and signed the purchase-agreement with the builder. Now my partner is planing to leave the country. To protect myself financially is the signature on the purchase-agreement mean that he is on the tittle? Or is the tittle set when one signes off on the mortgage? I'd like to be protected so if they go after my partner for potential money I'd be protected as his name will not be on the title of the house? So they won't come to me for money as his name will not be on the house. Thoughts?

    Cheers,


  2. #2
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    Title is set when the money changes hands. You can change it at any time up to the point where the papers are filed with land titles (usually done by your lawyer or the builder).
    I'm not JustAGuy (without spaces), or Donald, or <insert name here>.

  3. #3
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    Sorry, but I find your post a bit fuzzy.

    I take it your "partner" will not be completing the purchase with you. He is out of the picture, is that correct?

    Did you partner contribute so far to any deposit monies, or such?

    As for how title will ultimately be registered, the purchase agreement is not usually what governs. It's what the purchaser(s) instruct the conveyancing lawyer to do. Purchase agreements seldom deal with such niceties as joint tenants v. tenants in common, etc.

    As for "going after" your partner, if you are both on the purchase agreement, the vendor/builder can look to you both, jointly and severally, to fulfill the obligation to close the deal, unless the contract is modified to delete the partner.

    If you put up all of the purchase funds and are the sole party to execute any mortgage, then you are entitled to have title registered in your name alone. I am guessing when you say: "So they won't come to me for money as his name will not be on the house" you perhaps mean your partner's creditors cannot make a claim against the house if he is not on title. Or does "they" refer to vendor, builder, mortgagee or someone else?

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  5. #4
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    Quote Originally Posted by Mukhang pera View Post
    As for "going after" your partner, if you are both on the purchase agreement, the vendor/builder can look to you both, jointly and severally, to fulfill the obligation to close the deal, unless the contract is modified to delete the partner.

    If you put up all of the purchase funds and are the sole party to execute any mortgage, then you are entitled to have title registered in your name alone. I am guessing when you say: "So they won't come to me for money as his name will not be on the house" you perhaps mean your partner's creditors cannot make a claim against the house if he is not on title. Or does "they" refer to vendor, builder, mortgagee or someone else?
    We're both on the purchase agreement, and I solely contributed the $40K downpayment. Yes I'm concerned for any creditors in the future not the builder/vendor coming after me for partners money. I just don't know the real estate law, and wanted to know if a purchase-agreement means he is actually on the tittle, but it does not sound like it. So do I need to contact the builder to revise the contract or just wait till closing and solely close the deal on my own through a lawyer? Closing is in a year, and my partner is gone in couple months. Was also wondering if selling the house on papers is an option, but may be loosing money that way due to realtor fees?

    Thanks for the help guys.

  6. #5
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    The purchase offer is simply a promise to purchase or a contract between you and the builder.
    The titles are normally registered by a lawyer right before the purchase is completed and the builder is paid in full.
    But before the title is registered, the lawyer will ensure that the funds are in his possession in order to give to the vendor. If you are obtaining a mortgage, then your lender will have to qualify you and your partner for the loan. If your partner is backing out, then the lender will have to qualify you alone. If you don't qualify, then no loan is disbursed which prevents the purchase from being completed. If you already gave a down-payment to the builder and want to back out of the purchase, you may have to fight for your money back.

    Order of events usually go as follows:
    - sign purchase offer
    - qualify and sign mortgage commitment
    - sign legal docs with lawyer (title and mortgage registration)
    - lender wires mortgage amount to lawyer
    - lawyer ensures the builder receives all his funds
    - everybody shakes hands, someone hands you the keys, off you go as a new homeowner.

    If any of these steps fail, then the purchase does not happen. Being on/off title is not the problem. Being on the hook for the mortgage should be your concern. So if your partner is leaving the country and does not sign for the mortgage or the title registration at the lawyer's office, then the sale cannot happen.

  7. #6
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    Speaking of house and land titles: How do I find out who is on the title of a house in Toronto? (I don't live in Toronto).

  8. #7
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    Quote Originally Posted by dadaswell View Post
    Speaking of house and land titles: How do I find out who is on the title of a house in Toronto? (I don't live in Toronto).
    I've used Teranet in the past. You need to register and charge your retrievals to a credit card as I recall.
    https://www.teranetexpress.ca/csp/

  9. #8
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    Quote Originally Posted by OnlyMyOpinion View Post
    I've used Teranet in the past. You need to register and charge your retrievals to a credit card as I recall.
    https://www.teranetexpress.ca/csp/
    Thanks! I'll check it out.


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