As an experienced real estate lawyer, I really have seen it all when it comes to home, cottage, and commercial property sales, as well as the myriad of issues related to property laws, disputes, leases, rentals, etc. A significant number of the problems and heartache we’ve seen at our practice over the years are due to a simple lack of information, and are often quite avoidable. In fact, we’ve outlined the most important issues below so, you’ll have a good idea of what to watch out for in preparation of your next home purchase.
Here is a brief run-down of what we wish every home-buyer knew:
- Call us early, and call us often. It doesn’t cost extra to secure your legal representation early, and it will save you time, money and hassles. By connecting with our real estate law team early, we can discuss all the issues involved from beginning to end – instead of trying to pick up the pieces in the middle. It’s also important to communicate regularly – even a seemingly tiny detail like changing a closing date by one day can back up the paperwork significantly.
- Arrange your financing before you buy. Get pre-approved by your lender, and understand your mortgage prior to buying a new home (interest rate, payment frequency, term, etc.). By doing so, you learn so much about the legalities of a mortgage, what your price range will be, and how the financing works. That gives us more time to talk about all the other issues that get you closer to your closing.
- Not all real estate agents are the same – call me for a referral to a reputable one. Having a real estate professional who is knowledgeable and reliable is essential to the entire process; an omission or error on their end can cause problems for you down the road without you being aware of it until it’s too late.
- Real estate lawyers do a lot of work & will protect your home’s value. It’s our job to conduct thorough research and inspect every survey, contract, agreement, application, title and lien to make sure nothing falls through the cracks. We want you to rest assured knowing that every detail has been covered so that before you move in, there are no surprises such as your fence being on your neighbour’s property, or that you owe money in back property taxes.
- Have a lawyer review your Agreement of Purchase and Sale prior to signing. It’s a complicated document that you may be rushed into signing – with serious consequences. This agreement lists the purchase price, deposit amount, length of time the offer is valid, and other critical details that, upon further investigation, may not be in your best interests.
- Know exactly what you are buying and that it will meet all your needs – both present and future. Unlike most items we buy in life, you can’t “return” your house. It would have to go back up on the market, and you could end up paying extra in fees, taxes, mortgage penalties, etc. Also, if extensive and expensive renovations are needed, you may want to reconsider your offer and look for a home that’s better suited to you and your family.
- Give your lawyer sufficient time – to ensure a thorough and accurate title search, properly close, and other details involved in a real estate transaction. We can identify potential problems early in the process, and then work to resolve them so your closing runs smoothly. When under a tight timeline, it can be tough to find and review the smaller details that could uncover a much deeper issue.
- Don’t forget about the other costs. There are several additional costs involved in a real estate transaction; know and prepare for each one. For example, you’ll likely have to pay: land transfer taxes, insurance, inspection fees, appraisal fees, deposits, and more. We are here to outline those for you so there are no surprises and recommend you ask any questions you have, when you have them.
- There are discounts & incentives for first-time home buyers. Canadians qualify for some special programs to support first-time buyers, including land transfer tax rebates, and the use of RRSP money towards down-payments. We here at Ares Law offer a $250 reduction and special advantages for first-time purchasers so be sure to ask us how it works and if you are eligible.
- Know what comes included in the purchase price. For example, you may be surprised to find out that many fixtures and chattels are not included with your purchase. Fixtures are usually items that are attached or cannot easily be removed – such as hot water heaters, lighting and cabinets. Chattels, however, are movable items such as a stove, fridge, armoires, etc. If the seller wants to include these items in the sale, they need to be specified. Your lawyer can review your agreement to ensure you are clear on which items are, or are not, included.
- Take advantage of the District Municipality of Muskoka Home Ownership Program – as if there weren’t enough great reasons to live here… If you are purchasing a re-sale or new home for residential use within the District of Muskoka, you could qualify so, don’t forget to inquire.
- Include a “Solicitor Condition” in the Agreement of Purchase and Sale – avoid back end transactional issues. A property purchase is a complicated process, and it’s important to let others such as the realtors and lenders working on your purchase know that you have legal representation.
Your home or cottage is one of the most significant purchases you will ever make, and we want your experience to be a smooth ride from start to finish. We’re here to ensure you have the legal representation you need, which includes helping you understand the terms, obligations and inner workings of your contracts as well as helping to protect you and your investment. If you’re in the Muskoka region and are looking to buy or sell a home, give Bernie Keating a call at (705) 645-8743 to make sure your next real estate transaction is well in hand.
