Frequently Asked Questions

Are there taxes on houses that have to be paid on closing, in Nova Scotia?
There is a municipal tax called a Deed Transfer Tax that is paid on all property sold in Halifax Regional Municipality. It is 1.5% of the purchase price of the house and is paid at the time of closing. There is 14% HST on new houses that is included in the asking price. It works out to less than 14% usually because of rebates. It is about 11%. There is 14% HST tax on your services such as lawyers, application fees and such. See closing costs for all costs associated with a home purchase.

What are average utility costs in Halifax?
Electricity costs an average between $80 and $100 a month for most people. This is the electricity we would use for lights, appliances and such. Heating costs vary depending on the size and age of the house and what type of heating system you have. In general you can count on another $2000 to $2500 a year. Most houses I run into have total combined electric and heating costs of about $3000 - $3500 a year but I have seen lots that are even higher and lots that are lower. With oil costs fluctuating the costs to heat with oil obviously can change dramatically. Water costs about $500 - $600 a year. If you have a well there is no cost for water.

How does the sale of new homes work in Halifax?
New houses are generally sold through MLS here the same as resale. There are no large scale builders who build every house in a subdivision and have there own sales staff. New houses are listed through MLS and sold by MLS agents. Even if you are building from scratch you can use an agent to handle everything. There are unique issues to know about with new homes. First there is HST- Harmonized Sales Tax on new houses. This is built into the price you see on MLS. All new houses are priced including HST. Second there are usually allowances for flooring, kitchen cabinets, lights and often landscaping. These allowances are usually not enough to cover the actual cost so you have to budget additional money for overages. For example many new houses have flooring allowances of $5000. This includes tax and installation. Often the real cost is thousands higher. So allow 5-10% more for flooring, cabinets etc. The third thing to know is most new houses are heated with oil furnaces. Builders will lease the furnaces and pass the cost onto the buyer. The average monthly cost is usually between $70 and $150 a month for 5 or 10 years after which time you own the furnace. The last thing to know is when you see a Facsimile line drawing of a new house on mls.ca this usually means the house is not started yet. It takes 4 months on average to build a new home here from scratch and builders often are late and can be months late on the construction date.

What are the current hot issues in the Halifax area in real estate right now?
1) Land Registration-Starting Dec.1, 2004 the Land Registration system in the Halifax area will be changing to a digital system. What this means for home buyers and sellers is that when a property is sold the title will have to be "migrated" to this new system. This will result in a one time additional legal bill of between $400 and $1000. It is a debate whether this should be paid by the buyer or the seller. In almost all cases the seller has typically paid for it but in some cases it has become a negotiation tool. This issue must be dealt with as a clause in the agreement of purchase and sale,usually as a separate schedule called an LRA schedule. If the expenses incurred in your move are being paid for it is possible that this cost would be covered but I recommend you check with your relocation contact and ask if it is covered.For more detailed information you can download the guide to Land Registration Brochure by clicking here Download Brochure. You can also check out the gov't website at http://www.servicens.ca/property/landreg or call 1-866-518-4640
2) Oil tanks are a big concern now. Usually any oil tank that is older than 10 years old will have to be replaced. Insurance companies will make a new buyer replace the oil tank and most often before closing. If you buy a house that is 10 years old or higher that has an original oil tank plan on replacing the tank before you move in. What is happening here mostly is that the buyer will ask the owner to replace the tank as part of the offer at the owner's expense or the buyer will get permission to replace the tank before closing at the buyer's expense. A new oil tank will be $900 and up installed. There is always a date stamped on the oil tank with the year the tank was made. Even if the house is supposed to be less than 10 years old it may not be so check the date on the tank. You should also plan on replacing the tank once it becomes 10 years old if you buy a house that is close to 10 years old. Your insurance company will make you replace the oil tank once it becomes 10 years old.

What are Air/Heat Exchangers or Heat Recovery Units and what are they used for?
New houses and most houses that are less than 20 years old, will usually have a Heat/Air Exchanger which is also called a Heat Recovery Unit. This is a mechanical unit that removes humidity from the houses by bringing in fresh air from the outside and removing the humid air from the inside. The heat from the warm air inside is used to warm the cold air coming in from the outside. The heat is transferred inside the unit. This is why it is called a heat exchanger. This is a must in newer houses to remove humidity because they are heavily insulated and sealed so tight, . This unit can vary in size but is usually about 18 inches high by 3-4 ft long and is installed in the utility room of the house. These units cost very little to run in electrical costs.

What are Restrictive or Protective Covenants?
Most subdivisions that were developed since the 1980's have restrictions to protect the people who buy in the subdivision. These covenants are put in place by the developer and are enforced by them. These restrictions are attached to the deed and the buyer must agree to abide by them. The restrictions are very similar from one subdivision to another and include such things as -you are not allowed to operate a business or school in the subdivision- you are not allowed to cut trees that are bigger than 4 inches thick without permission from the developer- you are not allowed to keep horses,cattle or other domestic animals- the list can be quite long. In my agreement of purchase and sale I have a clause asking the seller to provide a copy of the covenants and giving the buyer the opportunity to read them before firming up the purchase of the property.

How long a time is there between time I write and offer and possession?
The time varies depending on the owner's situation. The typical closing date is 45-60 days from offer date here. If you want to move into a house say in June you should have an accepted offer in place in April. On the other hand if you are in a lease for another 10 months you shouldn't start looking at houses until probably 3-4 months before the end of the lease. The property you look at now will not be available for you when you are ready.

How negotiable are prices in the Halifax metro area?
Negotiation varies between owners. Some want full price and others have priced their houses looking for offers. In general you can count on about 2% negotiation off the asking price but don't count on it. What is important is the actual value of the house. If the house is worth 100% of the asking price then it shouldn't have to be negotiable.

How much do lawyers charge and when do I need to have one?
An average, and it varies, is about 1/2 of 1% of the purchase price for legal fees plus another $200 -$300 for disbursements. You should contact your lawyer when you have an offer ready so they can look at it and advise you. Most Realtors have good lawyers they can recommend if you don't have one.

What is most popular form of heating in Nova Scotia homes?
Oil fired heating is the most popular. There are two types, hot water baseboard and forced hot air. Electric would be next. Oil has been cheaper but with rising oil costs this may not be the case right now. Electric has no maintenance and has thermostats in every room. Electricity costs are controlled by the Provincial government. When Nova Scotia Power wants to increase prices they have to apply and go through a hearing process. For the last number of years NS Power has been granted increases because of rising oil costs. Much of the electricity in Nova Scotia is generated using oil. Beginning in 2008 a formula for tying electrical rate increases to costs of oil will be implemented. Time will tell if this is a good or a bad thing for home owners.
Most newer houses have oil heat but there is currently a trend developing towards installing electric heat in new houses. In new houses with oil the furnaces are leased and the monthly cost assumed by the buyer. This cost is between $70 and $150 a month for 5 years after which the furnace is owned by the buyer. Natural gas is now available in metro but only in one subdivision in a few areas. As of January 2008 it is available in Crichton Park and Russell Lake West in Dartmouth and some areas of South End of Halifax. It will eventually be available throughout metro but it could take years for that to occur and it will likely only be in the main urban core and not in the outlying areas but that remains to be decided.

What is a normal deposit will I need when I submit my offer?
A deposit cheque made out to the listing real estate company has to be submitted with your offer here at least within a few days of your offer being accepted. If the offer is accepted then this deposit cheque is cashed and stays in a trust account until closing or possession day. The amount varies depending on price and the owner's wishes but a typical deposit here would be $1,000 for up to $100,000, $3,000 for $100,000-$200,000 and $5,000 for over $200,000.

What does "conditional SOPP" mean?
This means that the seller has accepted an offer from a buyer who has a house to sell before they can buy. SOPP means Sale of Purchaser's Property. The way it works is the seller continues to offer the property on the market and if the seller accepts another offer, the buyer with the SOPP has first option to buy but must remove the condition of the sale of their property and also provide a letter of financing within so many hours of the seller's acceptance of the second offer. The time varies from as low as 6 hours to as high as 48 hours. This time does not include the hours of 12 midnight to 6 am but does include Sunday's and holidays.Once notified the buyer with the SOPP can either remove the condition and make their offer firm or declare their offer null and void. It is tricky for a buyer who has limited time on a house hunting trip.You must first negotiate an offer with the seller and this takes time. Once you have negotiated an accepted offer you must wait the time period for the original buyer to decide whether to remove their condition or let the house go to you. The whole process can take a few days. If at the end of the two days you don't end up with the house you have wasted valuable time. I would say more than 50% of buyers will remove their condition but it really depends.

Can you recommend a hotel I could stay while I'm in Halifax?
My office is located close to the Holiday Inn Express on the Kearney Lake Road. This is a well run and clean hotel with a pool and fitness center.This is where I usually recommend. Also on the outer edge of Halifax is the Lakeview Inn and Suites. This hotel is close to Bayer's Lake Shopping. Large suites at reasonable prices. If you want to be downtown Halifax I would recommend the Casino Hotel or Delta Barrington. If you are primarily looking on the Dartmouth side of the bridge I would recommend either the Ramada or Holiday Inn.

Can you show me listings of another company?
Yes. The MLS system we use means any agent can show any property listed for sale on the MLS system. You only need one agent to show you all the listings

Can you send me full listing sheets by e-mail?
Yes. I can send you the full listing on any house you have the MLS number for by e-mail. If you see a house you want information on a will send you a more detailed sheet that you can find on your own and I will send it the same day you request it.

What do I pay you for your services as my agent?
There is no charge to the buyer for agents commissions. The owner of the property pays our fees.

What is a Buyer's Agency Agreement?
This is an legal binding agreement between you and the agent in which the agent agrees to represent and work for you and you agree to buy a house through that agent. It provides that if you buy a house privately or directly from a builder you still pay the agent a fee. This agreement gives your agent a great deal of comfort and will motivate them to work hard for you.

How can I find out how expensive a house I will be able to afford?
The first step in any purchase should be talking to a mortgage person. They can tell you exactly what you can afford and give you a locked in interest rate for usually 90 days so if rates go up you still get the lower rate. I recommend you either talk to your own bank or a mortgage broker. The Mortgage Center has a program I like. They take your application then send it to a number of lenders who compete for your mortgage.

Sandy's Halifax area Home Buying Guides: