Closing Cost (pre-Con) - What else does it contain ?

[drewp]

All of your deposits should be made out to the builders lawyer in trust. I hope no one has been making them out to the builder?

 

[KA1]

All of your deposits should be made out to the builders lawyer in trust. I hope no one has been making them out to the builder?

drewp, the question was not as to who the deposit cheques should be made payable to.
Question was as to what happens to the interest on the deposit cheques.

Is the purchaser entitled to interest on deposit paid into a lawyer's trust a/c? I was told that the interest on amounts in a lawyer's trust account always goes to the Law Society of Upper Canada and not to the purchaser.

Any thoughts?

 

[Xenosblitz]

The interest is paid at the prescribed rate according to the condo act. I believe the prescribed rate is 2% below the bank rate which presently is 0.25%. In other words, no interest. It cannot be a negative number. Alternatively, it may be 2% below prime which is 3% I believe, which would result in 1% interest from the time the deposit payment is made to present.
Perhaps someone could confirm.
Sorry Xenosblitz, but if I am correct with my first assumption, you and the rest of us will be getting "no interest" on our deposits.

Thanks for all the responses, everyone!

My last condo I got interest as well (and it was to the solicitor of the builder in trust). It was peanuts, but it was something at least. I asked how it was calculated, and I got the prescribed rate response. A black hole for information in other words.

Prescribed rate should be clearly defined and readily available to everybody. I don't see why it isn't. Its not like buyers can argue with the rate. I just want a little transparency in the issue.

 

[interested]

drewp, the question was not as to who the deposit cheques should be made payable to.
Question was as to what happens to the interest on the deposit cheques.

Is the purchaser entitled to interest on deposit paid into a lawyer's trust a/c? I was told that the interest on amounts in a lawyer's trust account always goes to the Law Society of Upper Canada and not to the purchaser.

Any thoughts?

Ka1:
when the builder I had returned the deposits (which had been with the lawyer, I got interest; at least initially though as of late 2009 or 2010 interest rates were so low that there was nothing owing.) That was why I asked about your statement regarding the Law Society.