Hiring a real estate lawyer is not something most people think about doing unless they have to buy or sell a home. Yes, these are two specific times when you will need to hire a real estate lawyer, but anytime you have property questions or disputes, seek the advice of a licensed professional instead of searching online.
This is the first example of when to hire a real estate lawyer. And while you may know that you need to hire a real estate lawyer when conducting a real estate transaction, you may not know exactly why or what they do.
The information below sheds light on what a real estate lawyer does during the transfer of ownership of a real estate property.
When Buying a Home
Only a licensed lawyer can perform a title search and complete a land transfer for the purchase of a home to be legal and officially registered under the buyer’s name in Ontario.
But a real estate lawyer does so much more behind the scenes to ensure a seamless transfer of ownership and that their clients are legally protected. This includes:
- Reviewing the Agreement of Purchase and Sale and all other documents required as part of the sale.
- Completing a title search to ensure the property is properly registered to the seller and that there are no irregularities, claims or charges against the property, like construction liens or judgements that can delay or prevent the transfer of title.
- Reviewing condominium documents with their clients to ensure that they understand the disclosure statements, bylaws and financial statements.
- Reminding the buyer of their obligations and deadlines.
- Checking the status of the seller’s mortgage, ensuring that outstanding utility bills and property taxes have been paid.
- Ensuring that all necessary insurance coverages are in place.
- Handling the mortgage funds to ensure that the seller and all other disbursements are paid.
- Preparing closing documents that will be filed at the land registry office on the completion date.
On the closing date, the real estate lawyer for the buyer finalizes the sale by exchanging legal documents with the seller’s lawyer, obtaining the keys and sending a final reporting letter and attached documents to the buyer.
When a Selling a Home
On the other side of a real estate transaction, a real estate lawyer is needed by the seller. A real estate lawyer representing the seller performs the following tasks as part of their role in the transfer of property:
- Drafting or reviewing the Agreement of Purchase and Sale (APS) with their client to ensure the client understands its terms.
- Rectifying issues with the title that can delay or block the transfer of title and having them cleared before the closing date.
- Confirming that financial obligations are completed, which includes receiving the funds for the sale before releasing the deed, ensuring their client’s mortgage is paid and arranging a bridge loan if the seller has already purchased a new home.
- Delivering the keys to the buyer’s lawyer and finalizing the sale. Both lawyers exchange the necessary documentation on the closing date and send their clients a reporting letter and accompanying documentation detailing the sale.
Survivorship Applications
Before someone passes away, they will need to complete a survivorship application accompanied by the required legal documents in order to legally transfer ownership of their property to the person they choose. A real estate lawyer assists the property owner with their application, and after they of the pass, a real estate lawyer will ensure crucial documentation, like the death certificate, is sent to the corresponding parties to ensure the legal transfer of ownership of the property.
