The Role of a Real Estate Lawyer Know your role when buying or selling a home

The Role of a Real Estate Lawyer

First, your lawyer will send you a letter telling you what documents they may need from you. Since you are likely to pay at least $ 1,300 for legal services, I think it is important for you to know what your lawyer will do for you! Below is detailed information on the role of a real estate lawyer and what you need to do when working with a lawyer and getting a mortgage. Don’t wait for an attorney to assign a higher grade just before taking a position on a new purchase, be sure to interview them well in advance of your closing date.

Your real estate lawyer should advise you on what costs you are likely to incur in connection with the closing procedures, including:

Land Transfer Tax
payments
legal services
property tax

If you bought a new home from a developer, a real estate attorney can give you an informed estimate of how much you should set aside for “hidden fees,” such as:

Ontario New Home Guarantee Registration Fee
Installation fees for hydro and water meters
Fencing fees
Deposit Fee Estimation
a lot others

If all the conditions in the Agreement are met and the Offer is firm, the lawyer proceeds to research the ownership of the property. Initial searches include:

service searches
property tax search
search for buildings, zoning and planning
registered title searches

Letters are sent by your lawyer:

all municipal or regional utilities to confirm that there are no arrears or outstanding payments
to ensure that there are no conditional sales contracts, easements or unregistered contracts, liens
identify other encumbrances affecting property or equipment left by the Seller

Convenience is a big issue, and real estate newspapers and magazines always write about buyers who didn’t realize they weren’t allowed to put up a fence or create a parking space because the property survey they were working on didn’t come up with results. do not really show the city’s right to access property. It is your lawyer’s job to make sure all of this is disclosed to you. Your lawyer will also tell the utilities your name and the planned closing date and will require the final meter readings to be taken on the closing date so that the final invoices can be sent to the Seller.

Your attorney requests a tax statement to check the current year’s tax amount and inquire about any tax arrears and unpaid taxes. Your lawyer will also write to the Building and Zoning Department for full details of the bylaws and zoning restrictions, and the uses permitted (so you know if you are allowed to do business from your home or build a huge deck, for example). It is important that you send your lawyer a copy of the property survey as soon as possible – if Seller has a survey, I will receive one for you if it is not already included in the bid documents. If the survey does not exist, please inform your lawyer so that he / she can advise how you can protect your interests with Title Insurance.

The search for title deeds begins in the Land Register to ensure that the Seller is the true owner of the property, has the right to sell the property to you, and that the property is not subject to any encumbrances, encroachments, easements. , liens, agreements or mortgages that were not disclosed in the Agreement or Sale. You may have heard of cases of fraud when people’s houses were sold from under them by scammers who did not have ownership of the land! This is where your attorney really gets his fees. This search must be completed before the Bid Date (Title Search Date) specified in your Purchase Agreement.

Other important roles for your lawyer include:

Search executions at the appropriate sheriff’s office to make sure there were no executions against previous property owners that could affect your ownership.

Prepare and deliver a letter to Seller’s lawyer asking them to deal with any items found during the initial search, prior to or prior to closing.

Review the contents of the mortgage commitment letter that your bank prepares when you arrange financing and consult with you on the results of signing it.

Let you know about any last day mortgage financing expenses when your financial institution provides you with the final mortgage commitment letter.

If your lawyer is also acting on behalf of the financial institution (this often happens), he / she will prepare all the necessary documentation for the mortgage and send this package to the financial institution for approval before closing:

– Verify ownership of the property to the financial institution at closure.

– Inform you of any government programs designed to help home buyers that may apply to you, including land transfer tax credit programs, Ontario homeowner savings plans, RRSPs, and CMHC 5% down payment information.

– Provide your insurance broker with the name, address, telephone number and fax number of both your lawyer and the financial institution providing your mortgage. Your lawyer needs a letter confirming that insurance coverage is in effect after the close of the deal – this is very important because the bank will not advance the $ to close your purchase until they know you have property insurance.

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