Does a Home Seller Need an Attorney for a Cash Deal?. Hiring an experienced realtor might be very helpful. This is very helpful and informative. A lawyer can review this contract and make sure you’re receiving all the protections and assurances that you should be. The attorney may offer advice on many issues, such as whether or not to divide the property, impose a development-limiting covenant, keep a right of first refusal on a future sale, or reserve one or more interests in the land for sale (such as minerals, the right to timber within 10 years to certain specifications, the right to hunt or carve out an access easement to property the seller is not selling). For advice specific to your circumstances you should consult a lawyer. However, a lawyer can not act for both the Vendor and the Purchaser in a typical arms length Purchase of a house. You should get your property valued before you decide on the price to ask for. For example, the seller may be required to pay off a lien or judgment before selling the home. This was really education especially about learning what an attorney can do for you. As said, many people do conduct their own conveyancing to save themselves from the cost of hiring a professional. Pay out closing proceeds as directed by the clients; Follow-up with counsel for sellers to ensure that discharge of previous charge has been registered, Attend to or ensure discharge of existing mortgage is registered. The articles, posts, comments, opinions and information provided by LANDTHINK are for informational and research purposes only and DOES NOT substitute or coincide with the advice of an attorney, accountant, real estate broker or any other licensed real estate professional. This article addresses some of the main responsibilities of a lawyer, behind the scenes of your house purchase or sale. You mentioned that before a contract is in place, many sellers rely on their lawyer for help in drafting the terms of their sale and reviewing a listing agreement. In the early stages of your sale, you can ask them to look over the listing agreement with your real estate agent to make sure that the terms are in your favor. It all sounds complicated, and you would need all the help you can get. Debits and credits will be reviewed, and the math checked. A seller can sell his/her property privately or through an estate agent. Upon satisfactory receipt of the cash to close, the seller’s lawyer will instruct the realtors to release the keys and the house will be yours! Attend at bank to prepare certified cheques from Trust Account to pay out existing Charge and any other liens or encumbrances required to be discharged on closing; Attend to payment of existing Charge so as to discharge the existing Charge (or mortgage) as well as of any other liens or encumbrances required to be paid; Prepare payment for and deliver payment of real estate commissions owed; Advise municipality of change in ownership. We are often the last member of your real estate team you meet with to sign all the legal documents required to complete your deal. What does the law say? When should you ignore the advice of advisors you’ve hired? Tender: Presentation of items required to close the deal. After all, there are many homeowners out there who do not actually know what a real estate attorney can do for them. What to do first Get a valuation. Many people do not meet with their lawyer until shortly before they buy or sell their house. However, in some states, only a lawyer can do things like preparing the contract of sale, dispensing legal advice, performing a title search, and officially closing the deal. For example, a seller may sign a brokerage agreement that does not deal with a number of legal issues. The seller’s lawyer takes the lead in resolving the problem. The agent’s contract may be fine “as is,” but the prudent seller should talk over its provisions with his lawyer in advance of using it with any buyer. Get land smart! It seems especially need to make sure the details in the contract are just right. Buying and Selling at the same time. The seller should review contract language with his lawyer before authorizing his agent to use the agent’s standard contract and its boilerplate with interested buyers. The second stage of legal work for a seller begins once a signed contract is in hand. Residential Purchase. The estate agent must be registered by the Estate Agency Affairs Board and hold a fidelity fund certificate. Sellers should look for a lawyer who has negotiating and problem-solving skills. Fee: $595.00. Your lawyer will confirm the name of the registered owners and legal description and will investigate any claims or charges registered against the property (mortgages, builder’s liens, easements, rights of way, judgements, leases, etc.) If you are selling before you buy, your lawyer will ensure that the funds from your sale are applied to your purchase. Legal Fees, HST, Subsearch of Title, Property Tax Certificate, Photocopies, Registration Fees, Administration fee by mortgagee to discharge existing mortgage, courier charges, Real Estate Commission. Many of these tasks are routine, but the seller’s lawyer is needed when a problem has to be solved quickly to save the deal. Closing Date:On the closing date, the buyer lawyer will electronically transfer funds to the seller lawyer. Fees: The money a lawyer charges for the work. What does a lawyer do in a typical purchase or sale of a residential home? Conditions: Items needed to be satisfied before an offer to purchase becomes a firm deal, for example, the arrangement of financing satisfactory to the purchaser. Once everyone has what they need, the documents get registered electronically (with the exception of the few properties that remain in the old paper registry). The seller’s lawyer should prepare a certificate of satisfaction that shows the seller had paid off any such lender. We would be pleased to speak with you if you have questions about our services or need the assistance of a lawyer. reviews sales contracts, communicates terms in a professional manner and attends closings to prevent mishaps. Title Insurance: A type of insurance that protects property owners against things like unpaid property taxes or unknown defects on the title. Please Respond. Title Search: A search to retrieve documents on a piece of real property in order to determine whether there are any outstanding encumbrances and what the nature of the encumbrance is if there are any, whether the person who claims to be selling the property is the registered owner, and whether or how the purchaser will be able to gain access to the property. Conflict of Interest (Ethics): A lawyer can sometimes continue to act even if a conflict of interest exists or presents itself. This happens quite often as realtors often use standard forms, expecting that they will cover all situations. buying or selling a property; subdividing land; updating a title (i.e. Why Do You Need a Lawyer to Sell a House/Condo? Fortunately, most home sales follow a pretty standard procedure, and real estate agents, brokers, and title and escrow companies generally do a good job of guiding you through the process and making sure everything is in order. The seller lawyer will confirm receipt of the funds and use them to pay outstanding mortgages and debts. Provide an undertaking to the buyers and their lawyer to pay out existing encumbrances (as provided for and agreed to in the typical Agreement of Purchase and Sale); Request and obtain title insurance or provide an opinion on title, Obtain mortgage pay out statement if there is a mortgage, Prepare transfer for review and completion by seller’s counsel, Review draft transfer and complete missing information, Prepare draft Charge as instructed by Lender for review and execution by client. A lawyer can help you avoid some common problems with a home purchase or sale. Key (for Electronic Registry System): An electronic data file with passwords. The seller lawyer is required to verify the amount and term of all the items on the Statement of Adjustments. Land Transfer Tax: A tax that is paid by the buyer when a property is purchased. The property must get a satisfactory report by a home inspector "within 10 days after acceptance of the offer" (for example). Below is a chart with some definitions to follow that describes the main steps that a lawyer will take when assisting a client with the purchase or sale of their home. Lawyers will also charge anywhere from $300 to $800 for registering a mortgage on behalf of their clients. Use of this content without permission is a violation of federal copyright law. I always recommend to my clients hiring a lawyer who specializes in real estate transactions. Buyers may need to include a lawyer-review contingency, Exceptions to title can be cause for concern, PODCAST: Russell Ward Interviews Mike Moser, E. Region Pres. Some sites do not mention getting a real estate lawyer and what they can do for sellers. However, I particularly like that you bring up the fact that they can help with offers and counter-offers , making it much easier to sell a home. Prior to closing, the seller’s lawyer will review the proposed settlement statement that the buyer’s lawyer has prepared. $975.00 Review of the Agreement of Purchase and Sale and Status Certificate where applicable and note any deadlines to insure the deal proceeds as scheduled; Review the Agreement of Purchase and Sale and note any deadlines to insure the deal proceeds as scheduled; Request other required searches – tax arrears, common expenses, zoning, work orders, etc, Obtain property tax information from client or from City, Obtain information regarding satisfaction of conditions/deliverables (i.e. Your Agreement of Purchase and Sale stipulates that you are going to receive title to the property free and clear. 5588 Manotick Main Street What must a person do when s/he wants to sell his/her property? The solicitor will tailor their fees to the potential house sale value to pay for their time working on the legal process. Besides your Real Estate Agent, you have a whole team of people helping guide you home, including a Real Estate Lawyer. This certificate is recorded after closing. That is good to know that the attorney may offer advice on many issues that can occur during the sale. Role of a real estate lawyer as a buyer Review the Agreement of Purchase and all other legal documents Ensure there are no claims listed against the property Thanks for the information! Based on that support, you can expect to get your transaction to flow smoothly and get that completed within the shortest possible time. The best place to get all the information about selling a house is with a lawyer, so contact the best one around you and book a consultation (free or paid) before delving into the procedure yourself. Selling a property is more complicated than you may think. You will find that it is easier to take help from a learned attorney. In other states having an attorney is optional. The seller should consult his lawyer as offers come in and counter-offers are made. But spending a few hundred dollars for an attorney to check over all of the fine print in the final deal can be worth it. Certain proposals will have adverse or beneficial tax implications, which an experienced real-estate lawyer will be able to flag for his seller. In most real-estate sales, the lawyer representing the seller has an easier job than the individual representing the buyer. Some lawyers have an hourly rate; others will offer a flat rate for their services. Selling your home can be stressful, especially if you're buying a home at the same time. Manotick, Ontario A real estate contract is complicated. Should you do your own conveyancing when selling your house? Also, if you are buying before you sell, your lawyer will handle the bridge loan. 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