The Role Of Real Estate Lawyer While Purchasing A New Home In Toronto
You will need a real estate lawyer to represent you if you are thinking of purchasing a new condo or a house in Toronto.
The job of a real estate lawyer after signing the contract
Once you have signed the Agreement of Purchase & Sale, you or your real estate agent will forward a copy of all the documents to your lawyer. From there:
- The lawyer will search the title of the Property. Your Agreement of Purchase & Sale specifies that you are going to get title to the property free and clear.
- The lawyer will verify the name of the registered owners and legal description and will investigate any claims or charges registered against the property, including leases, judgements, rights of way, easements, builder’s liens, and mortgages.
Your real estate lawyer will even need to go over the following:
- Property taxes have been paid
- Details of the mortgage being obtained
- Property insurance coverage
- Documents associated with the condo – disclosure statements, financial statements, bylaws, etc.
- Documents prepared by the real estate lawyer of the seller
- Chattels and fixtures included in the purchase price
- Compliance with agreements, conditions, warranties, and restrictions
- Your financial will be enough and in place on closing
- Status of mortgages that the seller has on the property
- Zoning bylaws have been complied with
- Outstanding utility accounts have been paid
- The property survey certificate if it exists (they are very common in Toronto)
Prior to closing, the real estate lawyer will:
- Get ready all the documents associated with any sales tax for the chattels that you are buying
- Set up all the documents for filing in the land registry office on the date of closing
- Show you a buyer’s statement of adjustments that give you a balance outstanding that you have to come up with before closing (usually need to provide this amount to the real estate lawyer two days in advance)
- Prepare for you to sign any mortgage documents and make arrangements for funding to the lawyer’s trust account from the mortgage proceeds
The job of your real estate lawyer on closing day
On this very important day, your real estate lawyer will:
- Look for the title of the property to make sure there are no last-minute claims against the title
- Pay any money required on the date of closing as summarized in the statement of adjustments – the balance of the commission, land transfer tax, and sales tax
- Receive a copy of the certificate of possession from the New Home Warranty Program (for new construction condos)
- Release funds held in his trust account and send any amount owing to the lawyer of the Seller
The job of your real estate lawyer after closing
The job of your real estate lawyer is not done yet! After closing, they will:
- Make sure all the Seller’s obligations have been satisfied
- Send you a ‘Reporting Letter’ with all the documents and records including an account of all of their fees
If you actually made it to the end of this blog, congratulations! You are about to make what is likely the biggest purchase of your life – and you should know how all of your partners are helping you.
Are you looking for a certified and experienced real estate lawyer in Toronto? Feel free to get in touch with the certified professionals at Suma Law. We are just a phone call away – +1 905 461 9860!
