Actions required by buyer after closing? when to inform the city of the purchase?

[Nir]

Hi All,

When is the new owner supposed to inform the city of the purchase, for property tax payment purposes? Immediately after the closing day?

What if there is a high amount owing from the past by the previous owner? Should the buyer`s lawyer ensure he gets a confirmation from the seller`s lawyer that the bill was paid? Is this part of the title insurance/search or is it something else the buyer`s lawyer is also responsible for? should the buyer`s lawyer call the city himself for example to ensure all past bills were paid? - asking as apparently the city will not provide that information directly to the new owner in certain situations.

I guess it`s a "technical" question about timing and process for ensuring all past bills are paid by the previous owner (or executrix) before new bills are paid by the new owner, in order to avoid any issues with the city.

THANKS,
Neil

 

[mihwalee]

Hi Neil,

I`m not an expert but in BC, property taxes are usually dealt with by the buyer`s lawyer at the time of closing. If there`s an oustanding property tax, I understand that the amount would be deducted from the seller at the time of closing. The new owner then starts fresh and pays the property tax when it`s due. I`m not sure about any other bills.

Mihwa

 

[TerryF]

The lawyers look after all of that. The purchaser doesn`t inform the city of anything. Ditto for stratas where strata fees may be owing. The lawyer gets a new Certificate of Title from the Land Titles Dept. and an Estoppel certificate for stratas. By the time you get possession the slate is completely clean. If it isn`t then the lawyer didn`t do the job you paid them for.

 

[Nir]

Thank you Mihwa and Terry for the valuable information!

Regards,
Neil