Question 1

What is a residential real estate transaction?

Accepted Answer

A residential real estate transaction involves buying or selling a home or property, encompassing various legal processes to ensure a smooth transfer of ownership.

Question 2

Why do I need a real estate lawyer for my residential transaction?

Accepted Answer

A real estate lawyer is crucial for handling the legal aspects of the transaction, including contract review (in some cases), title searches, negotiations, and overseeing the closing process to protect your interests.

Question 3

What is an APS?

Accepted Answer

An APS is the acronym for Agreement of Purchase and Sale, which is the contract signed when buying or selling a property.

Question 4

What does a real estate lawyer do during a transaction?

Accepted Answer

Real estate lawyers perform tasks such as reviewing and drafting contracts, conducting due diligence, facilitating the closing process, ensuring legal compliance, registering instruments in the Land Registry Office of Ontario, coordinating the advance of funds from lenders, and resolving any legal issues that may arise.

Question 5

How much are legal fees for a residential real estate transaction?

Accepted Answer

Legal fees vary based on the transaction's complexity and required services. We offer transparent and competitive fee structures, and you can contact us for a personalized quote.

Question 6

What is a title search, and why is it important?

Accepted Answer

A title search is an examination of public records to verify property ownership and discover any outstanding liens or encumbrances, ensuring a clear title transfer during the transaction.

Question 7

What is included in the closing costs for a real estate transaction?

Accepted Answer

Closing costs typically include legal fees and disbursements. Those fees and disbursements vary depending on the type of transaction and its complexity. For a purchase, you have to keep in mind that land transfer taxes and title insurance are payable. If you sell, you will have to pay the realtors commissions and payout any mortgage or debt registered against your property.

Question 8

Can you explain the concept of "closing" in a real estate transaction?

Accepted Answer

Closing is the final step where legal ownership is transferred, involving paperwork completion, payment of closing costs, and key transfer.

Question 9

When should I do my last visit to the property?

Accepted Answer

Whether you are buying or selling, you should visit the property the day before your scheduled closing date to make sure everything is as it should be according to the APS. You should test all the appliances, make sure the faucets work, that the property is clean, etc. Please remember to check your APS as this document will tell you the state in which the property should be delivered (ex. Broom-swept condition vs professionally cleaned). If you see any issues during any of your visits, please let us know immediately by email with explanations and pictures/videos.

Question 10

What is the role of a real estate lawyer in the negotiation process?

Accepted Answer

A real estate lawyer assists in negotiating terms, conditions, and legal aspects to protect your interests and ensure compliance with laws and regulations. But for residential transactions, the lawyer is generally only involved if the terms of the APS or the specific circumstances of the deal are out of the ordinary. Otherwise, your lawyer usually only becomes involved once the APS has been signed.

Question 11

What are the common challenges in a real estate transaction, and how do you address them?

Accepted Answer

Common challenges include title issues, financing, or property conditions. We have experience addressing many of these challenges.

Question 12

Do I need a lawyer for a private transaction or only for transactions involving real estate agents?

Accepted Answer

Regardless of the transaction type, having a lawyer is essential for legal rights protection, contract review, and transaction law compliance. However, if you are doing a private transaction (ie. one without the involvement of a realtor), you should get your real estate lawyer involved early on in the process (ie. before signing an APS) to help you in the negotiation and drafting process.

Question 13

When do I meet with my lawyer?

Accepted Answer

You meet with your real estate lawyer a few days (typically 4 to 7 calendar days) before the closing date to review documents, discuss outstanding issues, and address questions or concerns. This is also the day you will deposit the balance of the funds to close the transaction, coordinate insurance, and sign the paperwork.

Question 14

Am I responsible for contacting the different utility companies?

Accepted Answer

Yes. For a purchase, you are generally responsible for contacting utility companies to set up services and payments in your name. For a sale, you need to make sure you inform the companies of the closing date ahead of closing and tell them how they can reach you for the payment of the last invoice.

Question 15

Am I responsible for contacting the city?

Accepted Answer

No. The city will not update their ownership records without a lawyer’s letter. We will therefore inform their tax and water departments of the change of ownership. Cities are often slow at updating their records. For a purchase, you should receive a tax bill within 60 days of closing. If you do not, please contact us immediately. For a sale, please make sure you keep track of all your payments of both taxes and sale and that you are in good standing with the city. You will have to provide that information, along with your most recent tax bill, to us.

Question 16

Am I responsible for contacting the condo corporation (if applicable)?

Accepted Answer

Yes. We will inform them of the change of ownership but you are responsible for making sure their records are up to date and that the payments are arranged or stopped, depending on whether you are buying or selling.

Question 17

Should I buy and sell on the same day?

Accepted Answer

We do not recommend that you do a purchase and a sale on the same day. Please consider scheduling distinct closing dates to reduce stress. This is because your sale needs to close first, allowing us to use the funds to complete your purchase. Complications during the sale can impact the purchase, setting off a chain reaction of issues that are costly and stressful to deal with. And unfortunately, a lot of these days of closing issues are out of our control. Opting for different closing dates provides more time to address unexpected issues.

Question 18

What are my options instead of selling and buying on the same day?

Accepted Answer

One of the most common options is bridge financing. Bridge financing allows you to purchase first and then sell, usually a few days later. This can reduce your stress because we can close the purchase without waiting for the funds from the sale and this also allows you to move from one property to the other over a few days. There are additional legal fees for bridge financing and your mortgage broker will be able to explain the other costs associated. But this is a much safer and less stressful way to do a purchase and sale. The last thing you probably want is to have all your belongings in a moving truck and be stranded at a hotel.

Question 19

What days should I avoid when scheduling a closing date?

Accepted Answer

Fridays (especially Fridays before long weekends), the day following a holiday or long weekend, the last day of the month, the first day of the month, around and in between Christmas and New Years, and any bank holidays.

Question 20

What if there is an issue and an extension is required?

Accepted Answer

Due to increasing concerns about fraud, financial institutions are implementing measures that may affect the processing time for the exchange of funds on closing day. This is an industry-wide issue beyond our control unfortunately. We appreciate your understanding and cooperation in navigating these challenges.

There can be other reasons for an extension on a closing day as unavoidable issues and unforeseen circumstances sometimes arise in real estate transactions.

In the unfortunate event that an extension becomes necessary, our team is well-equipped to manage these types of situations. We prioritize transparent communication and as such, we will promptly inform you of the situation, outlining the reasons and steps moving forward. Any potential additional costs will be clearly communicated to you as well. We also commit to keeping you apprised of the situation as much as possible.

And you can help too in a situation like this! Your cooperation is valuable. Prompt responses to inquiries, timely submission of required documentation, and flexibility in scheduling can significantly contribute to expediting the extension process.

Frequently asked questions