Lethbridge Herald, The (Newspaper) - April 9, 1973, Lethbridge, Alberta
12 THE LETHBRIDGI HIRAID Monday, April 9, There's more to buying a imme Add to the price Many paople hava found out the hard way that there is more to buying a house than just plunking down the down payment and meeting the monthly payments. By JIM MAYBIE Herald Staff Writer There's a lot more to buy- ing a house than most peo- ple think. Many think that all that's required is the down pay- ment and enough money to make the monthly mortgage payments. Not so. Many peo- ple ht'.'e found that out the hard way. If a couple, for example, can barely scrape up the down payment, it would be well advised to forget buy- ing a house until they have at least another suggests Lethbridge lawyer Gerald Offet. It could take that much, and perhaps more, by the time they pay the legal fees, cost of the move, mortgage application fee, registration of transfer, registration of mortgage, survey certificate, title search costs and mu- nicipal tax adjustments and pay for a few things that need being done in the new premises. People often forget these costs or are not aware of them when considering the purchase of a house. They re- quire a cash outlay in addi- tion to the down payment. When a person decides to buy a house, he must retain a lawyer mortgage com- panies require that a lawyer be retained The Law Society of Alber- ta has a published schedule of rates which can be charged, based on the value of the sale. Lethbridge lawyers gen- erally charge 20 per cent less than the provincial tariff. The tariff sets out that law- yers can charge l per cent of the first involved m a sale with a minimum charge of and 'i of a per cent on the value between and If the sale, than, amounts to the lawyer's fee in Lethbridge would be on the first and on the next for a total cost of less 20 per csnt far a net cost of Services For the the lawyer, acting for either the pur- chaser or the seller, provides the following services: short meeting with cli- ent to take instructions: searching title, plan and filed documents where neces- sary; obtaining statement of amounts owing on an encum- brance or agreements for sale; preparing or checking statement of adjustments and confirming approval thereof of clients; drawing the necessary agree- ment for sale, assignment for agreement for sale or op- tion to purchase and check- ing same where applicable: transferring and adjust- ing fire insurance if neces- sary; obtaining execution cf all necessary documents; submitting documents in trust or receiving documents: receiving and handling funds; reporting on all prior encumbrances: attending to register documents: complying with under- takings: arranging to transfer or obtain possession. That's what a lawyer does for his Disbursements In addition to the lasvyer's fee, however, are his dis- bursements, or the money he pays out to accomplish all this. A fee for registering a transfer of land has to bs paid to the land titles office. It costs for the first 000 of value, plus for each thereafter up to 000 and 50 cents per after that. Registration fee for a house, then, would be The lawyer pays this fee and the house purchaser reimburses the lawyer. The land titles office also charges an assurance fund fee to cover any losses sus- tained by a landowner as the result of a clerical error made by a member of the staff of the office. The fee is based o.n one fifth cf 1 per cent of the first value of land being registered and one-tenth of one per cent on the value of land in excess of If a person's lot was worth the assurance fund fee would be The mortgage must also be registered with the land ti- tles office based on for the first of value and per of value thereafter up to A house, then, with a mortgage of 000. have a cost of Then there's the cost of a survey certificate which a person requires it he is tak- ing out a new mortgage. If he assumes an existing mort- gage, the certificate will like- ly already be on file and this cost won't be necessary. The survey certificates cost could be minimal to a few hundred dollars, depending on the work required of a surveyor. The certificate is a draw- ing, simply showing where the bouse is located on a lot so the mortgage company will know that the house is ac- tually on the lot for which the mortgage is being granted, and that neither the house nor neighbors' houses en- croach on each others' lots. The house purchaser must also reimburse the lawyer for costs incurred in searching a title, such as the land titles office normal fee of for a search plus costs of long dis- tance phone calls to Calgary. The search shows if there are any encumbrances on the property at the time of the search. Adjustments There are also property tax adjustments or prepay- ments during the year of pur- chase which could run into a few hundred dollars. The original owner of a house, for example, may have paid his taxes for a year and will have to be reimbursed for the remaining portion of'the year the property is in the hands of the new owner. The lawyer may also have extra costs, for which the purchaser will be billed, as- sociated with a house pur- chase. If during a title search, for example, it is found there is an encroach- ment of property, the lawyer may be required to negotiate the purchase of an extra foot of land. Or if there is a hassle over vrhat was actually involved in the sale, such as a fridge or stove, rugs or drapes, the lawyer's services may be re- Costs more than first thought about more, local lawyer estimates quired. Mr. Offet advises prospec t i v e purchasers of houses to get down in black and white the items that are to be included in the pur- chase price. Processing When a person applies for a mortgage he must pay cash to the mortgage compa- ny to cover the cost of pro- cessing the application. A typical cost breakdown for a person purchasing a property with downpayment would be: legal fees, registration of transfer. land titles assurance fee, mortgage registration, survey certificates. title search, property tax adjustment. mortgage application fee, total, The is required in cash in addition to the down- payment on the house. Some people would have to add to that some or all of the following, depending on their previous residence: cost of moving, house and contents insur- ance, curtains and drapes, lawn and garden equip- ment, deposit on city utilities, transferring telephone, basic hafed tools, furniture or additional fur- niture, plus minor repairs cr altera- tions, And others Other items which have to be considered are landscap- ing, fencing and the cost of plumbers and electricians for hooking up stove and clothes drier. For the basics such as tele- phone, utilities, moving costs, house insurance and a few miscellaneous things, would be a conservative cost. That, on top of the S606 for items looked after by the law- yer brings additional costs to more than Mr. Offet said many' peo- ple, especially young couples, have found themselves in des- perate financial straits be- cause they were not fully aware of the costs over and E'fccve the down payment for a house. They got into a pur- chase too deep before they realized the additional costs, he said. Mr. Offet suggested some real estate agents could do a better job than they do of in- forming prospective buyers of these extra costs. Audience of 500 watches festival stars perform The 1973 Kiwanis Music Festival, which had en- tries and participants in 318 classes, drew to'a close Sunday evening, with the Stars of the Festival Con- cert at the Yates Memorial Centre. The 28 top selections of poetry, stories, songs and in- Btrumentals were performed by entrants in the festival ranging in age from four- year-old Mar Nai Low to the Golden Mfle Singers. This year, the Stars of the Festival Concert did not in- clude the presentation of tro- phies and scholarships. T. F. Cuthbert, chairman of the concert, said the trophies and the in scholarship mon- ey will be presented at a ban- quet. Friday, with the com- petitors and their parents present. Mr. Cuthbert pointed out that the 43rd Annual Music Festival had had min- utes of speech, minutes of piano and 1.680 minutes of vocal. He mentioned that sev- eral volunteer workers for the festival had put in 6.000 hours. He said that from the fes- tival entries there will be 19 recommendations to the pro- vincial finals on May 26, two recommendations for the fes- tival trophy and four per- formers- who will be recom- mended for the national fi- nals. John Banfield, president of the Downtown Kiwanis Club, said the club had begun spon- sorship of the music festival in 1952 because it coincided v.ith their aim of providing the means for enduring friendship and building the community. He said that it was evi- dent, by the large number of people attending the concert 500 that people in Lethbridge feel the festival is well worth-while. Aid. Ed Bastedo said the festival was important in that it had helped in the launching of many careers. Trade unionist to retire after 42-year career An active trade unionist in Alberta for 42 years will be honored at a retirement din- ner in Lethbridge Saturday. Roy Berlando. business representative for Local 846, 500 dogs entered Merc than 300 dogs of SO different breeds be pre- sented at the Letbbridge and district Kennel Club aB- breed championship dog shows and obedience trials at the Exhibition Pavilion April 21 and 22. The greatest number of en- tries are in the working group category which has close to 360 dogs. The great- est single er.try is German Shepherds with DO dogs com- Rarer breeds exhibited will include the Akita, Bichon, Frise. Khippet, Kuvasr, Puli, Gordon Seller. Kerry Blue Torpors ard Scbipperkes. Exhibitors will be oomang from Alberta centres. Sas- British Columbia. Tlani'-ena. Quebec and from several cities in the United United Brotherhood ot Car- penters and Joiners of Am- erka. since June, 1962. re- tires in June. Mr. Berlando started his union work 'n Drumheller -.vhere his fcther had a coal mine. He was elected pres- ident of Local 2817. United Mine Workers of America, in Drumheller in 1931. He started working a s a carpenter in 1939. spent five years overseas the Ca- nadian Army, and on dis- charge io 1946 resumed work as a carpenter. He joined locai 546 in 1945. became president of lie local in Jane, T357, recording sec- retary in June, 1930 and busi- ness representative two years later. Mr. Berlando served the local as an elected officer for 16 years and for 34 years an elected officer or the Building and Con- struction Trades Council. One of the original group that made the Labor Club of LcWibridge a reality, he served as club general man- ager durinp its infancy and Z.TI execi.jtivc dircctw. Saturday's dinner bonoririf; Mr. Berlando -will be held in the Labor Club at p.m. Woe is tnr Sondro Gaboon, 1404 ISlh St. S., performs oJ slari concert wiih cloiswaJes from FJseJvvood Bawden. Senator to attendf Arpie will r-c ihc president of the sin Annial Model United Xalicns ihr bclhfrrMec Collegiate In.Milule April 23 and 24. TV Central TW Gerry HejnvM. n vocial teacher ?1 1bc Crow- r.Cst Consolidated High School. Guest fpeaier for lie ban- A Pare, a rrofcssor of po- litical science in the faculty or Arts stxl Sciences at UK University of Calgary. Dr. Parel is Ihe ciiairrmn of Ca1- pary's Humanities Cirli ard has scned in several func- tions witb ibe UN. Thf orhairmen rrc Uor- forbara Allan jinrl the .MaIf adviser and originator the Model in LMhoudge is .lack Si'-d. All fn'tcmoMi ?Ojons are to the public no rharge. Alberta restaurants not hurt by boycott By JIM GRANT Herald Staff Writer The organized boycott of red meat hasn't had any ef- fect on restaurant business in Alberta, says the president of the Canadian Restaurant Association of Alberta. In Lethbridge on the week- end, Rene Vandcrve-lde of Cal- gary said seme member res- taurants increased prices on meat dishes when the cost of meat rose substantially this year, but it has not caused a decrease in patronage. He claims the boycott of meat will lower the cost, en- abling the restaurant owners tc brir-g their prices back to normal. Mr. Vandervelde believes the farmer won't retaliate to the boycott by refusing to ship h5s animals to market. "The farmer can't win by holding animals from the market just because the price is he saio. "Ev- ery day he holds back he loses some of his He claims people will eat out as much as ever even if restaurants with increased prices don't lower them after meat-costs stabilize. Penple hive leisure dollars lo spend and dder them from spending, he said. of aren't avoiding ment dishes and, as prior to Jlie ir.oat boy- cott, they're .Mill ron-meat dishes sacJi as fruit salads, vegetable plates, six! fisih. Mr. Var-deneta'e suggested it wouldn't harm people 1o C2t taw meat. Many people hsve Ihe misconrepiicn that the more meat they cat the healthier they'll te' "In most cases an eidit- oiance steak would man than supply 1he nutritional re- oairenient Jte body, but just the same, many people order 32 or he said. The volume of restaurant sates in Alberta a nine per cent ircrcase year a similar period in Iffj2 Mr Vjjjidm-elde credits the extra leisure dollars with the brwm in biiMnc-ss but c-x- an v r, m- tins Mirrnr-r from tounsm. He predicts that in 3373 Al- berta "will have more tourists from Europe and Japan be- cause of the devaluation of the Canadian dollar on the world market. The restaurant business volume increases directly with the number of tourists travelling this province, he said. The trend toward camping instead of holidaying in mo- tels hasn't harmed the res- taurant business, Mr. Vander- velde said. "Women get tired of pre- paring meals in cramped quarters and the family ends up eating many of their mea5s in restaurants.'1 Their present financial pic- ture may provide Alberta's restaurant owners with a smile or two but their 'em- ployment problems tend to prevent them from jumping for joy. The restaurant industry is having a great deal of diffi- culty in obtaining qualified personnel to work for them. The industry must blame- itself because for maiy years it v.-as considered lo be a very low-paying business. "That's r.ot the case any-, said Mr. Vandervelde. "The industry pays very well row. It's a case of supply and demand and right now the colleges and technical schools just can't supply enough peo- for crippled children launched todav The Buck a Cup 11-day campaign was launched to- day toward its 1973 goal of SC.350 for the Lethbridge dis- Irirt. in member out- lets oi the Res- taurant Association will be Buck-a-Cap buttons for each over the nest 10 days. The buttons will enable the purchaser to obtain a free cun of coffee or lea at a CRA restaurant April 19. All proceeds from the cam- jwtjn are Junsed over to the AUserta OJTO- cil for 'he Disabled. There are 29 restaurants 11 IjcJihbridgc. Taber. Fort Mac- 1ml. Procter Creek. Blair- and Common par- in the campaign. The local snr- its goal of by 5.100 during initial year of oporaliwi 5n 3972. The Alberta poal fcs been sd at SSO.flWi. LaM vcar 1hc piwincc raised of its SW.ooo goal. "Well be a closer to our goal this year." .'.aid Rene YpjirVrvclde. presdknt of the Canadian Res-iauran! Asso- ciation of Alberta. M. VanderveWe said 5 per csot of money raised is used fo- administration, another 5 per cern gees prizes, and the rest is for the crip- pled children. Saturday. Ernie Smith. pas5 president of the res- taurar! a'-.-orisS'cn rT Lclh- bridge. was presented wilh a plaque in recognition ser- vices rendered to Ihe CRA. LCC convocatton May .1 ifilh annual coavoca- of Lolbbridge Commun- ily Collc-cc v.ill tc held May 5 at Soulhnuns'er United Church p.m. Gucsl speaker at Ibc ccrc- jnony -will former LCC i jcc president Werner Schrr.adt, newly elected lea- der of Alberta's Social Cre- dit party. A ba'Tquet for jiraAaolcJ. z.nd Ri'cs'ls ivil] 02 held at 6 p m. in the Exhibition Pay- ill on. A formal dance will follow at 9 p.m.