LEGAL HELP: BUYING A HOUSE OR OTHER REAL ESTATE
WHEN DO I CALL A LAWYER? (Or... What can he do for me right now?)
The "Legal Help" series is brought to you by:
The Professional Corporation of the Law Office of Robert A. Dinnen
4 Government Road East, Kirkland Lake, Ontario P2N 1A2
Telephone (705) 567-7979 - Fax (705) 567-7980
41 Third Street, P.O. Box 907, Englehart, Ontario P0J 1H0
Telephone (705) 544-8878 - Fax (705) 544-8444
Email [email protected]
WHAT CAN A LAWYER DO TO HELP ME TO BUY?
Making An Offer
- Even if you are being shown the property by a realtor, do involve a lawyer as soon as you become interested in making an offer.
- Before signing an offer, review it with a lawyer.
- A good realtor is honest and honourable, but a good lawyer is also an independent advisor and an advocate for your interests alone.
- You might not necessarily know what questions to ask, especially if you are a first-time buyer.
- Not only price, closing date and what is included in the purchase have to be considered, but also such important conditions as an inspection by a qualified home inspector and the time you will require to obtain approval of mortgage financing.
- Get a copy of any survey that the vendor might have in his possession or control.
- Talk to your lawyer, before signing the offer, about anything else that is of interest to you, such as the condition of the basement and roof, the ages of the physical structures and the things the vendor has indicated he will do to the property before the closing date.
- Everything agreed upon should be written in to the offer.
- If the vendor doesn't have a realtor, your lawyer will draw up the offer from scratch.
- For country property, there are several special concerns, such as road access, the ages, approvals and physical condition of the septic system, well, water pump and heating system, and water potability.
- Locations of structures in relation to lot lines are always of serious concern, especially where lines are not as well defined on the ground as they may be elsewhere.
- For waterfront lots, ask the vendor where title reservations are located, such as a crown shoreline reserve and any right-of-way.
- For rental property, obtain all available details as to the names of tenants, rents paid and to be paid, length of tenancies, history of rent increases, responsibility for utilities and furnishings and details of unresolved issues. Sort out responsibility for necessary evictions.
- For commercial property, see a lawyer immediately.
After Making An Agreement
- Usually there is very little that can be done while you are waiting for a home inspection report or financing approval. Once you have dealt with any issues that arise in those areas, however, you are usually able to proceed to take care of other matters that have to be dealt with in order to close the purchase.
- If there isn't a current building location survey plan available from the vendor already, get a survey done in order to determine where the lot lines are and whether there are any encroachments. Title insurance is a cheaper alternative and affords some protection from encroachments, but you still won't know where the lot lines are without a survey.
- Ensure you inform your lawyer how you wish to take title, whether jointly or in common with another person such as a spouse or partner, or in some other name such as a corporate entity if the property is being acquired to carry on a business.
- Shop for insurance on the property. If there is a problem with getting insurance, notify your lawyer immediately and get some advice.
- Serious title issues that come up in the searches that your lawyer performs will be brought to your attention immediately and your options will be discussed. However, minor easements to public utilities might not require urgent attention unless you request otherwise.
- Notify the electrical and natural gas utilities to open accounts and the phone, cable and/or other companies to change your service address. Put an address change in at the post office.
- Arrange the movers for the day after closing, at the earliest, bearing in mind that, although the funds required to close will have to be delivered to your lawyer's office early on the closing date, the keys will normally not be made available to you until later on that day.
- Make an appointment to meet with your lawyer before the closing date to execute mortgage documentation, review the results of his title and other searches and review how the closing funds are calculated. The funds required will include your down payment, adjustments with the vendor for things like prepaid taxes, water, rents and heating fuel, and your legal costs, including fees, disbursements and taxes such as land transfer taxes and GST.
- Be sure your lawyer knows how to get hold of you throughout the day of closing, in case issues arise at the last minute. In any event, you will probably wish to be notified as soon as the keys can be released to you.
Buying real estate is stressful. Working with us closely from the beginning to the end will make it as easy and trouble-free as it can be.
The "Legal Help" series is brought to you by:
The Professional Corporation of the Law Office of Robert A. Dinnen
4 Government Road East, Kirkland Lake, Ontario P2N 1A2
Telephone (705) 567-7979 - Fax (705) 567-7980
41 Third Street, P.O. Box 907, Englehart, Ontario P0J 1H0
Telephone (705) 544-8878 - Fax (705) 544-8444
Email [email protected]