What a Real Estate Lawyer Does in Ontario for Residential Transactions
The process of buying or selling residential property in Ontario can be complex and challenging. A real estate lawyer plays a crucial role in ensuring a smooth transaction and protecting the interests of both the buyer and the seller. In this article, we will delve into the specific tasks that a real estate lawyer carries out in Ontario for residential transactions.
A Real Estate lawyer in Ontario can provide invaluable assistance in the following areas:
- Title Search and Investigation
- Drafting and Reviewing Agreements
- Mortgage Financing
- Title Insurance
- Escrow Management
- Closing the Transaction
- Post-closing Services
- Real Estate Lawyer’s Fees
Title Search and Investigation
One of the primary responsibilities of a real estate lawyer is conducting a title search on the property being bought or sold. This process involves examining the property’s history to ensure the seller has a clear and marketable title. The lawyer will identify any outstanding liens, mortgages, easements, or other encumbrances that may affect the property’s transfer. They will also verify the legal description of the property and confirm that property taxes have been paid up to date.
Drafting and Reviewing Agreements
A real estate lawyer prepares and reviews legal documents related to the transaction, such as the Agreement of Purchase and Sale (APS), which outlines the terms and conditions of the transaction. They ensure that the agreement complies with relevant laws and regulations and that the rights and interests of their client are protected. They may also negotiate specific terms, conditions, or clauses on behalf of their client.
In addition to the Agreement of Purchase and Sale, other documents may include the Seller Property Information Statement (SPIS), which provides information about the property’s condition and history, and any other relevant disclosures or warranties.
Mortgage Financing
If a buyer requires a mortgage to finance the purchase, the real estate lawyer will work with the lender to prepare and register the mortgage documents. They will review the terms and conditions of the mortgage, ensure that the buyer understands their obligations, and coordinate the transfer of funds between the lender and the seller on the closing date.
Moreover, the lawyer will ensure that the mortgage is registered on the title and that the lender’s security interest is protected. They will also address any prepayment penalties, portability options, or other conditions that may be relevant to the buyer’s financing arrangement.
Book a Discovery CallTitle Insurance
Real estate lawyers may also arrange for title insurance, which protects the buyer against any defects, liens, or encroachments that were not identified during the title search. This insurance provides financial protection and peace of mind for both the buyer and the lender in the event of any title-related issues that may arise after closing.
Title insurance can cover a range of potential problems, such as fraud, forgery, undisclosed heirs, or survey errors.
Escrow Management
A real estate lawyer often acts as an escrow agent, holding funds and documents in trust until specific conditions of the transaction have been fulfilled. This role ensures that the buyer’s deposit is protected and that funds are properly disbursed to the seller, lender, and any other relevant parties on the closing date.
Closing the Transaction
On the closing date, the real estate lawyer finalizes the transaction by ensuring that all documents are signed and properly executed. They will register the transfer of title and mortgage (if applicable) at the Land Registry Office, obtain a new property tax certificate, and disburse funds to the appropriate parties. Finally, the lawyer will provide the buyer with the keys to their new home.
However, it’s worth noting that nowadays, it is becoming increasingly common for real estate agents to use lock boxes to provide access to a property. In this scenario, the buyer’s agent would be given a code to open the lock box and retrieve the keys, rather than receiving them directly from the lawyer.
Book a Discovery CallPost-closing Services
After the transaction has been completed, a real estate lawyer may also assist with any post-closing matters, such as resolving title defects, adjusting property taxes, or addressing any legal disputes that may arise.
For example, if a title defect is discovered after closing, the lawyer will work with the title insurance provider to rectify the issue or provide compensation to the affected party. If there are disputes over property boundaries, easements, or encroachments, the lawyer may assist with negotiating a resolution or pursuing legal remedies.
Real Estate Lawyer’s Fees
Real estate lawyers typically charge fees for their services, which can vary based on the complexity of the transaction and the amount of work involved. Some lawyers charge a flat fee, while others may bill by the hour. In addition to legal fees, there may be other costs associated with the transaction, such as disbursements for title searches, registration fees, and title insurance premiums.
Book a Discovery CallConcluding…
A real estate lawyer in Ontario plays a critical role in residential transactions, ensuring that the rights and interests of their clients are protected throughout the process. By conducting thorough title searches, drafting and reviewing legal documents, facilitating mortgage financing, managing escrow, and closing the transaction, real estate lawyers provide invaluable expertise and support to buyers and sellers navigating the complex world of residential real estate.
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Disclaimer
The content provided in this article or blog is for informational purposes only. It is not intended to constitute legal advice or to replace the advice of a qualified legal professional. While we strive to provide accurate and current information, the law is complex and constantly changing, and each person’s circumstances are unique. Therefore, you should not rely on this information as a substitute for professional legal advice. This information does not create an attorney-client relationship between you and our law firm. We strongly recommend that you consult with a qualified attorney in your jurisdiction to understand your legal rights and obligations. Always seek legal advice before making any decisions that may impact your legal rights or obligations.
