What Does a Real Estate Lawyer Do in Ontario at the Closing?
Purchasing or selling a property is often considered one of the biggest financial decisions that a person or an enterprise could make. You may be purchasing a home for the first time, selling a commercial property, or undertaking a big, complicated commercial real estate transaction, a real estate lawyer can help it go as smoothly as possible.
Understanding the specific roles and responsibilities of a real estate lawyer, especially in Ontario, can save you time, reduce stress, and help prevent costly mistakes. In this blog, we’ll explore what does a commercial real estate lawyer do, including for the seller, during closing, and why you need one.
Understanding Real Estate Law
Real estate lawyers major in property law, which is a very sensitive branch of law that deals with transfer, leasing and financing of real property. This may involve houses, offices, buildings, acreages, and any other immovable assets.
Real estate law incorporates state, federal, and local statutes, which are always changing. The work of a real estate lawyer is to make sure that every transaction follows the most current laws and legal cases.
They have in-depth knowledge of real estate that helps them in solving legal issues that may form hurdles to buyers, sellers or investors.
What Does a Real Estate Lawyer Do for the Seller?
Many legal intricacies must be addressed when selling a property. A real estate lawyer plays a crucial role in ensuring the transaction adheres to legal standards and protects the seller’s interests throughout the process.
- Reviewing the Agreement of Purchase and Sale (APS)
The first and foremost aspect that a real estate lawyer does for the seller is to read through the Agreement of Purchase and Sale (APS). These terms and conditions set out the provisions of the transaction in this document. A lawyer makes sure that the contract complies with the law and that the interests of the seller are safeguarded whether in relation to timeframes, payments, or possible events of occurrence.
For instance, if there are conditions for example repairs, inspections, or buyer financing in the APS, the lawyer will make sure that these conditions are noted appropriately.
- Title Search and Resolving Title Issues
Before a property can be sold, any potential issues with the title must be addressed. The lawyer will perform a title search to ensure the property is free from liens, judgments, or other legal encumbrances.
If issues arise, such as undisclosed mortgages or claims against the property, the lawyer will work to resolve these matters before the closing date.
- Discharge of Mortgage
In order for a property to be sold, all the problems regarding the title to the property need to be resolved first. The lawyer will run a search to confirm the property is not subjected to any lien, judgment or other legal claim.
If problems are discovered in subordination of mortgages or lawsuits against the property, the lawyer will help with setting it right before closing.
- Ensuring Compliance with Local Laws and Regulations
Every municipality in Ontario may have its own regulations regarding property sales, such as zoning laws or municipal taxes. A real estate lawyer ensures that all legal obligations, including land transfer taxes or outstanding property taxes, are paid and accounted for.
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What Does a Real Estate Lawyer Do at Closing?
The closing is one of the most crucial steps in a real estate transaction. A real estate lawyer is instrumental in ensuring everything goes according to plan and that both buyer and seller fulfill their obligations.
- Document Preparation and Review
At the closing stage, a lawyer prepares and reviews all documents to ensure accuracy and legal compliance. These documents may include the deed, transfer of ownership forms, and statements of adjustments, which summarize any payments made or still required between buyer and seller.
- Handling Funds
A lawyer also facilitates the transfer of funds. In Ontario, it’s common for a lawyer to hold funds in trust. This includes the down payment, mortgage funds, and other amounts required for the transaction. The lawyer ensures that these funds are distributed properly upon closing, including paying off any existing mortgages, fees, or outstanding taxes.
- Title Transfer
After the financial aspects are handled, the lawyer will officially transfer the title of the property to the buyer. This involves registering the new ownership with the relevant authorities, ensuring the buyer legally owns the property.
- Closing Adjustments and Settlements
Real estate transactions often involve adjustments for prepaid items, such as property taxes, utilities, or maintenance fees. A lawyer calculates these adjustments to ensure that the buyer and seller only pay their fair share for the period they own the property.
Why You Need a Real Estate Lawyer
Whether you're purchasing, selling, or dealing with commercial real estate, having an experienced real estate lawyer by your side is invaluable. They help navigate the complexities of property law, ensure compliance with all legal requirements, and protect your financial interests.
Here are a few reasons why you need a real estate lawyer:
- Expertise in Legal Documents:A real estate lawyer understands the fine print in contracts and can identify any potential issues or unfavorable terms.
- Risk Mitigation:Real estate transactions involve risks, including financial and legal liabilities. A lawyer helps you minimize these risks by ensuring that everything is in order before the transaction is finalized.
- Regulatory Compliance:Different municipalities may have unique laws governing real estate transactions. A real estate lawyer ensures that all local laws are adhered to.
- Financial Protection:Whether it's ensuring that your mortgage is properly discharged or that the title is free of encumbrances, a real estate lawyer safeguards your financial interests.
Here's how you can hire the right real estate lawyer:
- Start by asking for recommendations from friends, family, or your real estate agent. Online reviews and legal directories can also help you find reputable real estate lawyers in your area.
- Make sure the lawyer specializes in real estate law and has experience handling transactions similar to yours, whether it's residential, commercial, or investment properties. Ask about their success rate and client satisfaction.
- Verify the lawyer’s credentials and licensing through the law society in your province. You can also check for any disciplinary actions or complaints filed against them.
- Request a detailed explanation of the lawyer's fees, including hourly rates or flat fees, and any additional costs such as title searches or document preparation. Make sure these costs align with your budget.
Conclusion
A real estate lawyer plays a vital role in any property transaction, offering expertise and peace of mind to sellers, buyers, and investors alike. From reviewing contracts to managing the closing process and handling complex commercial deals, their responsibilities ensure a smooth transaction and help prevent costly mistakes.
At HouseClosing, our team of experienced real estate lawyers is dedicated to guiding you through every step of your transaction, ensuring it is as stress-free and seamless as possible. Whether you’re buying, selling, or navigating a commercial deal, we’re here to help. Contact us today for expert legal support in your real estate transaction!
Need expert legal support for your real estate transaction? Contact HouseClosing today at 416-655-2000 or visit our website to schedule a consultation with one of our experienced real estate lawyers. We're here to guide you every step of the way!
