Are you considering hiring a lawyer to help you with the transaction process of buying a home? Below, we’ll outline why it’s important to hire a lawyer when buying a home to review all your documents before you sign.
To Review The Purchase And Sale Agreement
The PSA is a binding legal document that outlines all the terms of the transaction, the financial requirements and all obligations of all parties involved. Many of the terms and clauses are difficult to interpret to an untrained eye. If your agent misses an important clause, this little mistake could result in a legal battle and even cost you the property altogether. It’s always wise to hire a lawyer to review the document to ensure that your interests are protected and any complex clauses are fully explained to you before you sign on the dotted line. Lawyers also carry errors and omissions insurance, so if there’s an error on their part, they are insured to cover your costs.
They Check For Any Encumbrances
Lawyers can conduct all the important searches to ensure that you’re buying a property without any encumbrances that could cost you money. In this context, an encumbrance means any existing mortgages or charges on the property. For instance, they will conduct a title search, mortgage discharge, and also check if there are any construction liens, building permit issues, easements and encroachments. If you were to purchase a home and the encumbrances were not cleared, you would be responsible for paying for them. Some issues could even prevent the purchase from happening entirely. A lawyer will ensure you are aware of any encumbrances before you complete your purchase.
They Transfer The Land
In Ontario, a lawyer is required to register the transfer of land. Once all the negotiations have been completed, the lawyers will start to prepare the closing documents that are required to transfer the land. There’s often a lot of paperwork that the buyer will need to round up to ensure the transfer of land can take place. This often includes identification, proof of homeownership insurance, mortgage documentation, and title search. A lawyer can help direct you through this process and ensure nothing is missed that could hold up the transaction.
They Are Responsible For Holding All The Money
About a week before the closing date, a lawyer will have you sign all the legal papers and pay any deposits or down payments that are required. They will also hold the money in escrow and keep all the documents necessary for the transaction until the process is complete. This ensures that no wrongdoing can occur by any other party. Then on the closing date, they will send the seller’s lawyer all the money to officially close the transaction. Only upon receipt of the money will the keys be released. This process ensures that people cannot move into the property before money is received.
They Ensure Everyone Stays Honest
Not all real estate agents and developers are 100% honest. A lawyer can ensure that you are always protected in the deal. They will advocate on your behalf and clarify that what is discussed is reflected in all the contracts and agreements. Without one, you could run the risk of the agreement being written in favour of the seller, agent, or developer.
Don’t end up with a lifetime of regrets, always hire a lawyer when you buy a property. Call us at Accord Law and one of our experienced real estate lawyers will be happy to help protect your rights in the transaction process from beginning to end.