Buying your first home is a very exciting time, and likely the largest purchase you will ever make. There are so many aspects to this process, including the mortgage application, securing financing, and literally hundreds of other details. This is a special time in anyone’s life, which is all the more reason to ensure that your home purchase is handled properly – by using an experienced real estate lawyer. A real estate lawyer will give you the legal and financial advice you need, and act on your behalf throughout this often overwhelming and complicated time.
Our #1 role is to review agreements and advise you
The transfer of land from one person to another is actually a pretty big deal from a legal standpoint. Beyond the mortgage documents and purchase agreements, there are land transfer taxes, deeds, chattels, surveys, title searches, liens, and much more to consider as part of the buying and selling process.
The purchase agreement is a key document when buying or selling a home. Some people rush to sign it quickly to make sure the sale doesn’t fall through, but later regret not having it reviewed by a real-estate lawyer when things don’t go smoothly. A lawyer will explain each detail of the agreement, and make recommendations or changes to protect you and your investment. Here are some commonly addressed issues on a purchase agreement:
- Were any additions to the property or alterations such as fences, sheds, garages, etc. done lawfully?
- If the buyer wants to change the property after purchase, what changes are legally allowed?
- What happens if mould, asbestos, lead paint, water damage, or any other major concerns are found?
- What if the financing falls through, or the closing does not happen on the assigned date? What happens to the down payment in that situation?
Before signing a purchase agreement, a real estate lawyer can advise you on all the various conditions that allow you flexibility to withdraw from the purchase or sale if you come across any problems. It happens all too frequently that a home purchase goes awry, and the buyers are stuck with a less-than-ideal agreement they can’t get out of, or with a home that has serious problems. Your lawyer will ensure that the terms of the purchase are exactly what you want, and that if any surprises come up, you are covered.
You may also ask your lawyer to review your mortgage/financing documents and terms with you, so you are fully aware your financial and legal obligations as well as your rights. They can also inform you about government programs for first time home buyers such as borrowing from your RRSP, or available tax credits.
Protecting your interests is key
It is your lawyer’s role to protect you and your interests – not the realtor, seller or builder – just you and your family. For re-sale homes, your lawyer will search for any liens against the property, encroachment issues, title fraud, and review surveys and public records related to your potential purchase. They also sort out who pays what for things such as property taxes or utility bills that were pre-paid by the seller. For new home builds, your real estate lawyer can help reveal hidden costs, and sort out issues such as the use of inferior materials, construction delays, and warranties.
Closing the deal
When it comes to the closing, your lawyer’s job is to help make this process as smooth as possible. They do all the behind-the-scenes work so you can focus on packing and moving! They will tell you in advance what your exact closing costs are (such as land transfer taxes, HST, real-estate and legal fees, etc.), obtain the mortgage funds from your bank or lender and hold them (in trust) until the deal closes. Your lawyer will also work with the seller’s lawyer to finalize and transfer payments, and then transfer the title (and keys!) to you. They will also look after all the necessary paperwork, insurance certificates, deeds and other details or last-minute concerns. The best part of the job is handing the keys over to a happy couple, knowing they are well-protected legally in their new home and off to a great start!
Whether you are a first-time home or cottage buyer, or you’ve been through the process a dozen times, you can rest easy knowing that Ares Law is on your side. When it comes to retaining a lawyer for your real estate needs, it’s true that “an ounce of prevention is worth a pound of cure”! Here at Ares Law, we will represent you with professionalism and integrity. Call us today at 705-645-8743 for a consultation.
