Real estate investments require huge sums of money and can have an impact on your financial situation and overall liquidity. When investing such enormous sums of money in buying property, it’s important to have the right legal help to guide you through the process. Here’s what a real estate lawyer does and why you should seek their help when making a property purchase.
What Does a Real Estate Lawyer Do?
A real estate lawyer reviews all the documents involved in buying or selling a real estate property. They review the agreement of sale and agreement of purchase. They make sure that the transaction is legitimate and the property is free from claims and liens.
Buying a real estate asset is a big investment. Trying to save a little money by handling agreements yourself can lead you to greater losses. Hire a good real estate lawyer to have a smooth property purchase process.
Why Should You Get a Real Estate Lawyer?
You might be wondering why you should pay a lawyer for a simple transaction. Well, buying real estate is not as easy a transaction as you think. There are a lot of technicalities that you need to be careful about when buying property. Following are all the things your real estate lawyers can do for you when buying a property.
Reviewing Legal Documents
It’s important to get all your real estate documents, including the agreement of purchase, reviewed by a real estate lawyer. If there’s anything wrong with the agreement, your lawyer should be able to point it out. Make sure not to sign anything before your lawyer has reviewed it.
Ensure No Claims or Liens are Listed Against the Property
Your real estate lawyer makes sure there are no claims or liens against the property you’re buying. Buying a property with liens and claims can have legal consequences. Being the new owners of the property, you will have to fight those claims. It’s therefore important to hire a real estate lawyer who can look into the property and make sure it’s free from all claims and liens.
Arrange for Title Insurance
Title insurance is a policy that protects the residential property owners against losses related to the property’s title and ownership. Title insurance isn’t required in Ontario. However, it’s required in some of the other provinces. Your real estate lawyer can arrange title insurance for you.
Title insurance is crucial. It helps to cover:
- Unknown title defects
- Any liens against the property
- Encroachment issues
- Title frauds
- Other title-related issues
Ensure You Have a Valid Title
To be able to own the property, you need to have a valid title. Your real estate lawyer makes sure you have a valid title when you close to ensure the other party has no claim over the property. This process is also known as title transfer and is completed by your lawyer.
Making Sure Property Taxes are Up to Date
Your real estate lawyer determines if the seller has paid all the prior property taxes before you buy the property. You’ll have to pay the property taxes once the property is yours. It’s, therefore, crucial to make sure that the seller has paid all the taxes before you buy it.
Calculating and Paying the Land Transfer Tax
As buyers need to pay the Land Transfer Tax when buying a property, your real estate lawyer will calculate the amount of tax you need to pay and arrange for you to pay these after the deed for the new home has been transferred in your name.
Prepare Mortgage Documents
Once you’ve decided to buy a house, your lawyers will draw up your mortgage paperwork so that you can get a loan from the bank.
Closing the Deal
Once the agreement has been signed, and the transaction is complete, your lawyer will make sure all the legal and financial conditions for the procedure have been met. They will then exchange the agreements and the keys with the seller’s lawyer and hand them over to you.
Conclusion
Hiring a real estate lawyer helps ensure you don’t commit any legal mistake or oversight when buying a property. Investments in real estate are huge, and so are the risks. Make sure you have the right legal help to guide you through the process.
About the Author
The author is a real estate lawyer at Nanda and Associate Lawyers Professional Corporation. He works with clients buying or selling real estate property. He has been working in the field for a very long time and is well-versed with Canadian real estate laws and procedures for buying and selling property. He works with a team of civil litigation, personal injury, and Canadian immigration lawyers, all of whom are impressed with his work and experience.
For any legal advice, book a free consultation with real estate, civil litigation, personal injury, or Canadian immigration lawyers at Nanda and Associate Lawyers Professional Corporation.
