When and Why You Need a Real Estate Lawyer

Many people seek out all the help they can get when buying or selling a house. They surround themselves with the best real estate agents, home inspectors, professional cleaners, and more. We can definitely see the wisdom in this approach!

It makes for a relatively stress-free experience, if not a far more lucrative transaction. A strong support network is the way to go if you’re new to the market or have been out of it for a long time.

Other people take a more “do-it-yourself” approach. Everything that can be handled themselves, they do with pride and enthusiasm. However, there is one professional you absolutely cannot do without when buying or selling a home. At some point, you will need a real estate lawyer. In this post, we’ll show you exactly why and how to choose the best fit for your situation.

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Why Do You Need a Lawyer to Buy a House?

Ideally, you’ll connect with a reputable lawyer early in your home search, possibly even before sending in your offer. You’ll enjoy the most protection at this stage in the process, as they can review all of the terms, read the boring fine print, and make sure you are getting exactly what you think you’re getting.

Once you’ve signed an offer, there is no longer any choice. A lawyer is the only one who can legally register you as the new owner with the Ontario Land Registry.

Before this transfer happens, your real estate lawyer also runs a title search to make sure there are no liens or encumbrances against the property. They check the land survey for any boundary disputes, and if you’re buying a condo, they’ll do a thorough review of the status certificate.

If you have a mortgage, your lawyer then arranges for a title insurance policy to protect your lender against any financial loss. Although not technically mandatory, we also suggest you ask for a homeowner’s policy of your own.

The more you know about how the market works, the more successful your transaction will be. The posts below can help fill in some of the gaps:

What Does a Lawyer Do When Selling a House

Both the seller and buyer need to have a lawyer to close the transaction. However, for the best results in selling your house, it doesn’t hurt to connect with an experienced professional beforehand.

This way, you can spot any legal hiccups before they become real problems that can jeopardize your transaction, or worse, open you up to a lawsuit later. A lawyer who specializes in real estate can pre-emptively check for outstanding property taxes or open permits.

Taking care of any issues in advance is an intangible value-add, but well worth it in most cases, just for the peace of mind. A clean title enables a straightforward close and minimal stress after accepting an offer.

The Value of Due Diligence

Real estate lawyer fees in Ontario will vary depending on the lawyer’s reputation and the complexity of the transaction. As a general rule, you can expect anywhere from $1,500 to $3,000 or more if complications arise. However, beware of discount lawyers.

Anyone who has passed the Bar, is licensed with the Law Society of Ontario, and has access to a Teraview account can transfer your title with the Ontario Land Registry office. Nevertheless, that doesn’t mean all real estate lawyers are equal.

This is one of the most financially significant and life-changing decisions you are ever going to make. It is worth a little extra to invest in a serious professional with experience and expertise who will do thorough due diligence on your behalf.

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What Could Go Wrong?

The consequences of working with the least experienced, or least expensive lawyer can range from barely noticeable (at least at first) to catastrophic. If the title happens to be perfectly clean already, then your transaction might close with no issues. At the same, you don’t want to rely on pure luck for such an important transaction!

Delayed closings due to a clerical error could cause a headache, but might not end in disaster. It’s a different story if you find yourself stuck paying for the previous owner’s back taxes or municipal charges if they were missed during the title search!

Some consequences might not show up until well after you’ve moved in, such as an unresolved work order that you are now required to fix at your own expense. Extreme situations are rare, but issues can arise if you don’t have the right representation. This is not the time to try to save $100 by choosing the less experienced option!

Looking for more tips before buying your first (or next) house? Start with the informative posts below:

How to Find a Good Real Estate Lawyer

Many real estate lawyers have a detailed website where you can start your research and see who might be the best fit. Once you have what looks like an ideal candidate, you can do some due diligence of your own.

The next step might be a phone or in-person interview. Start listing your questions now, and you’ll remember what to ask before you make your decision. When in doubt, your friendly Peterborough real estate agents are happy to make a referral!

Do you have more questions about buying or selling a house in Peterborough? We are happy to help with anything you need. Reach out to team@jeffandkatie.ca or call 705-243-9797 to start the conversation today.