When I work with first time home buyers, many are surprised to find out that they need a real estate lawyer when buying or selling real estate. Typically the realtor and mortgage professional help you start the process, and once a home is bought or sold, the lawyer gets involved.
Here are a few things that they do:
1) Review Status Certificates
If you're buying or selling a condo, a lawyer will review it to see if there are any potential issues. They'll go over the reserve fund study, litigation, building insurance, rules, special assessments, outstanding maintenance fees and more. While most status' do not have major concerns, catching them is critical to ensuring you're covered, or prepared if you are a seller listing a property in a building with status-related issues.
2) Arrange for or Close Title Insurance
If you are a buyer, you will opt for title insurance. Title insurance protects the buyer and lender against losses related to the property title or ownership. This can include things like existing liens against the property, title fraud, encroachments, errors in surveys or public records, and title related issues that may prevent you from selling, leasing or obtaining a mortgage. If you're a seller, you'll want to ensure that the lawyer deals with or closes any title insurance related issues prior to closing.
3) Ensure Property Taxes are up to Date
For buyers, they'll confirm property taxes, and also calculate the land transfer tax owed on closing. They will deduct any rebates owing to you at this stage as well!
4) Deal with Issues that Arise Before Closing
Lawyers are there to solve any issues that come up after an offer is accepted. For example, in most agreements, the seller guarantees the appliances to be in working order at closing. If buyers realize that this is not the case on their final revisit, the buyer and seller lawyers will work together to find a solution (rebate, fix or replacement costs etc). The same goes for sellers, if buyers refuse to close, a lawyer is by your side to provide legal advice. A lawyer is invaluable in any moments of uncertainty before closing.
5) Close the Transaction
Lawyers will draw up mortgage documents, ensure all legal and financial obligations are met, and both buyer and seller lawyers will exchange legal documents and keys on the closing date. As you can see, a real estate lawyer is a big part of the home buying and selling process! Their services range in price, but $1500-$2000 is a reasonable expectation. If you're looking for a stellar lawyer, reach out and I can provide you with the contact details for my preferred real estate lawyer. #firsttimehomebuyer #realestatelawyer #torontorealestate #torontorealtor #torontorealestatelawyer #buyertips #homebuyertips #torontohomebuyertips #torontolawyer #closingcosts #propertytaxes #titleinsurance #statuscertificatereview
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