What Does A Real Estate Lawyer Do?

Whenever you’re thinking about buying or selling a home, a real estate agent should be one of your first go-to resources. The benefits of having a trained expert to represent you and advocate for your best interests are invaluable. That said, a successful outcome is a team effort, and a good real estate lawyer is definitely someone you want on your side. They typically come in towards the end of your purchase or sale, and play a vital role in a seamless transaction. Today, we’ll answer one of the most critical questions you may not have thought to ask: what do real estate lawyers do for you when buying or selling a home in Ontario?

Do you have a specific home buying challenge? The best way to overcome it is with personalized guidance. Booking your complimentary Buyer’s Consultation is an excellent first step.

What Is a Real Estate Lawyer?

A real estate lawyer specializes in property transactions. It’s their job to protect you against everything from poorly written contracts and encumbrances to outright fraud. They diligently review all documents and perform a comprehensive title search for any legal issues that could affect your ownership of the property.

They’ll also check for unpaid property taxes while arranging for a title insurance policy if the buyer requests it. Essentially, they think of everything that could come back to haunt you later and actively work to prevent it.

If nothing noteworthy happens during your move, it might seem as though your lawyer doesn’t do much of anything. That’s actually a sign that they have been hard at work in the background to protect your interests. No one likes surprises on moving day. When it comes to the legal and financial aspects, a “boring” transaction is the best experience any of us can hope for.

What do you need to know before buying a house in Etobicoke? The posts below will help you become a savvy buyer:

What Does a Lawyer Do When Buying a House?

Why do you need a lawyer to buy a house? When your transaction closes, a licensed lawyer is legally required to complete the registration with the Land Registry of Ontario. Not all lawyers are equal, however.

A skilled buyer’s lawyer focuses on protecting your investment to ensure you secure a home with an unobstructed title that won’t cause problems later on. They’ll investigate to see if a title has any financial claims against it or any restrictive covenants about how you can use your new property.

A detailed lawyer review of the Agreement of Purchase and Sale is so valuable that real estate agents often recommend buyers include it as a condition in their offer. With this protection in place, you could potentially back out of the sale without penalty if the title search turns up a severe flaw.

What’s the worst that could happen if you don’t have a good real estate lawyer in your corner? You might end up with a hefty property tax bill or unpaid municipal charges from the former owner. Now that the title is in your name, it’s your responsibility. Buying a property with a flawed title could also affect your ability to sell the home later on. You’ll be surprised at how many potential buyers are put off by title issues!

Looking for more tips to get the best results when selling your home? Check out the related reading below:

Do You Need a Lawyer to Sell a House in Ontario?

Since a seamless closing process is so critical, a home seller must have their own real estate lawyer to finalize the transaction. When selling, a real estate lawyer will ensure you receive the agreed-upon price and that there are no issues to interfere with the transfer of ownership.

They’ll review the APS to make sure it reflects the seller’s wishes and protects their interests. The lawyer will also handle the mortgage documents to either pay off the seller’s existing mortgage on closing day or transfer it to their new property.

The seller’s lawyer will communicate with the buyer’s lawyer and respond to any questions that come up during the title search. If there are any obstructions, they will work together to clear them.

They will complete a Statement of Adjustment to clarify what property taxes and other municipal expenses are shared by the buyer. On closing day, the seller’s lawyer drafts a Letter of Direction (formally called a Direction re: Funds) to transfer funds in Ontario. This is a legal document that instructs the lawyer how to disburse the funds from the sale of the home.

Upon receiving funds from the buyer, the seller’s lawyer will follow the letter to first clear the existing mortgage, pay out any real estate commissions and other fees, and cover outstanding property taxes.

The remaining funds go to the seller. Once the money is transferred successfully, the lawyer will notify the agents, the keys are released to the buyer, and the transaction is now complete.

Do you have questions about the buying or selling process? Our Etobicoke real estate agents are standing by. Reach out today at 647-282-7653 or email contact@sileckythompson.com with any questions or to get started.