Why Do I Need a Real Estate Lawyer in Ontario?
Buying or selling your real estate property is one of the most significant transactions in a person’s life. Even more so when you’re a first-time buyer. Having an experienced real estate lawyer and realtor on your team is an absolute necessity. The Nava Wilson team is committed to ensuring this experience is memorable and seamless.
A real estate lawyer in Ontario will be able to help you understand your obligations under the Agreement of Purchase and Sale. For example, if you need to assume a rental hot water tank.
In the midst of carrying out title searches, it may come to our attention that there are more rental chattels at the property. Our responsibility is to have those rental chattels paid for and closed on closing.
Whether you are buying or selling, the team at Nava Wilson will ensure that your closing is completed in accordance with the terms of the Agreement of Purchase and Sale. From the early stages, we will address any provisions that may cause concern to ensure that post-closing issues are promptly addressed.
When choosing a lawyer to help you complete your real estate transaction, it is crucial to retain the services of an experienced solicitor. Experienced real estate lawyers will understand where complications with home sales tend to arise and will make sure that their client’s interests are protected every step of the way.
Ontario real estate lawyers serve clients in residential and commercial transactions. They review documents, carry out due diligence searches, prepare closing documents and complete the transaction in accordance with the Agreement of Purchase and Sale.
In residential real estate, they help with buying/selling/leasing/renting or property disputes. They can also help with properties considered assets to be transferred and give advice regarding family or inherited property.
In commercial transactions, solicitors may advise on property zoning issues, complete due diligence, and review lease contracts. Generally, their work focuses on the numerous steps involved in a real estate transaction.
A qualified Ontario-based real estate lawyer can simplify the entire process, saving you money and time. Transactions in this area can be complex, but a real estate lawyer can lighten the load.
Can I buy or sell a property without a Real Estate lawyer in Ontario?
In Ontario, you can’t buy or sell real estate property without a Real Estate lawyer.
Only solicitors have the ability to register the transaction through “Teraview” (The Government of Ontario’s land records database). As such, lawyers continue to be an integral part of all real estate transactions.
What Does a Real Estate Lawyer Do for the Buyer?
They ensure the transfer of ownership and ensure clear title to the property is provided to the buyer on closing.
During the transaction, the purchaser’s solicitor would have the following duties:
- Verify the identity of the Purchaser;
- Review the Agreement of Purchase and Sale and advise the Buyer of any potential issues;
- Carry out necessary title searches to ensure that a clear title can be obtained on closing;
- Submit title requisitions to the vendor’s solicitor;
- Review responses to requisitions and address any deficiencies;
- On receipt of mortgage instructions, prepare and execute closing documentation with the purchaser;
- Obtain title insurance on behalf of the client;
- On the day of the closing, transfer closing funds to the vendor’s solicitor and complete title registrations in accordance with client instructions;
- Report to the bank and the client;
What Does a Real Estate Lawyer Do for the Seller?
For a Seller, a solicitor has the following duties once retained:
- Verify the identity of the Seller;
- Obtain a payout statement from existing lenders (if any);
- Responding to purchaser’s requisitions and other communications
- Prepare and execute closing documents;
- Receive closing funds from the Buyer;
- Release transfer for registration;
- Disburse funds in accordance with client instructions;
- Report to the client;
Breakdown of Duties of an Ontario Real Estate Lawyer
Due Diligence
Some people wait to hire a lawyer when they have already signed a purchasing contract, but a real estate lawyer is a great asset when deciding on a property to purchase. A lawyer can handle the due diligence behind a large purchase, uncovering possible risks.
Review Purchase Contract
A real estate lawyer in Ontario can review a potential purchase contract before you sign it, assist with negotiations, detect potential legal issues, and answer any questions you have about contracts.
Purchase of Title Insurance
Title insurance protects residential or commercial property owners and their lenders against losses related to the property’s title or ownership.
Title insurance is not a requirement in Ontario, so the decision on whether or not you should purchase title insurance should be discussed with your lawyer. However, it is important to note that title and home insurance are not the same.
Purchase of Title Insurance
- Unknown title defects
- Existing liens against the Property's Title
- Title fraud
- Encroachment issues
Title Insurance Does Not Cover:
- Title defects
- Native land claims
- Environmental hazards
- New survey discoveries
Title Insurance Can Be Purchased For:
- Houses
- Condos and apartments
- Cottages
- Office buildings
- Warehouses
- Rental units
- Leased Properties
- Shopping centres
- Industrial properties
- Vacant land
Speaking with your lawyer can give you further insight if title insurance is right for you. Then, if it is helpful for your situation, you can purchase title insurance right through your lawyer.
Assist with Closing
The closing date marks the end of the real estate transaction process when ownership of the property is officially transferred from the Seller to the Buyer. This is when all the necessary documentation is signed, the keys are exchanged, and the buyer officially gains ownership of their new home. It is an essential step in the transaction.
On closing day, your real estate lawyer will facilitate your financial transactions and create a statement of adjustments. This is an extremely important piece of documentation as it shows all the transaction details, including the deposit, adjustments and other fees, and the final amount due on closing day. In addition, this document proves that you have paid and gone through the correct legal steps in obtaining the piece of property, so be sure to keep it in a safe place.
Other Duties of an Ontario Real Estate Lawyer
Another duty of an Ontario-based real estate lawyer is protecting clients’ interests. Real estate transactions are likely to be the beginning of a long-term relationship with your real estate attorney, as lawyers can handle other items outside just the sale and purchase of the property. Areas in which they could assist include:
- Investment Decisions: Real estate lawyers can be valuable resources for investment decisions. For example, due diligence is a helpful process that can be completed for future investment decisions as you grow.
- Estate Property Mitigations: A real estate lawyer could also help mitigate land issues resulting from estate negotiations. They can offer insight into the process and tax implications along the way.
- Property Litigation: Having a real estate attorney by your side is invaluable if you ever need legal representation for real estate litigation. They can draft documents and pleadings and appear on your behalf in hearings if necessary.