IN THIS SECTION
- THE ROLE OF A LAWYER IN A HOME PURCHASE
- REVIEW OF AGREEMENT
- NEW HOMES
- TITLE AND OTHER SEARCHES
- COST OF SEARCHES
- CLOSING MONEY
- AFTER CLOSING
WHAT IS THE ROLE OF A LAWYER IN A HOME PURCHASE?
The lawyer’s job is to make sure you’re getting what you’re paying for.
Before your offer is signed, take it to a lawyer. He or she will go over it with you, and make sure you understand all of the legal aspects of the contract. It is, after all, the largest and most important contract most people ever sign.
SHOULD I HAVE MY LAWYER REVIEW MY AGREEMENT OF PURCHASE AND SALE?
It’s a really good idea to have your lawyer review your Agreement!
Your lawyer will review topics such as:
- the survey
- special clauses (i.e. warranties about physical aspects of the property, water portability, closing costs, et cetera)
- title insurance
- Conditions are about things that are so important that if they aren’t met, you can back out of the deal.
- Warranties are about things that are important, but not so much that the deal can be cancelled; instead these can be handled by adjusting the price, getting something fixed, et cetera.
The offer may have conditions and warranties:
If the offer is conditional upon financing or on something else, such as a home inspection, or on the sale of other property, your lawyer will probably wait until the condition has been met before beginning work.
The lawyer may also be able to tell you whether you can do what you want in the house. e.g. rent out a basement apartment, conduct a home-based business, or install a pool in the back yard. Unless your agreement says that the seller is guaranteeing that you will be able to do these things, you will have no way of getting compensation or cancelling the transaction if, before closing, your lawyer discovers that in fact you can’t legally do them. For this reason, it is extremely important that you share your plans with your lawyer before you sign the offer so that the agreement can include such guarantees.
Builders’ offers contain a lot of things that you won’t see in a resale offer. You usually have less room to negotiate these things.
- delay of closing if the house isn’t ready in time
- changes in the colour of brick, siding, flooring, shingles and so on.
- extra costs such as for water meter installation, hydro connection, boulevard tree planting, development charges, local improvement charges, ONHWP enrollment
- refrain from making any changes in the grading until the entire subdivision is finished, including landscaping, fences, pools, decks, and so on.
- restrictions against TV dish antennas, clotheslines.
- and many more!
For more information, please see my webpage entitled purchasing a New Build.
You purchase exclusive ownership of the unit and a percentage interest in common with other unit owners in the rest of the complex.
- If the building is new and is being built for you, you have ten days to back out of the deal for any reason at all. This is not the case with the purchase of a resale condominium.
- There are restrictions on what you can do with and in your unit.
- The Ontario New Home Warranty Program also applies to new condominium units.
For more information, please see my webpage entitled Purchasing a Condominium.
TITLE AND OTHER SEARCHES
The lawyer will examine the title by reviewing the on line title records, and examine any survey. The purpose of this is to make sure that the seller owns all that you want to buy, and that he has a complete right to sell it; sometimes other people’s consents are needed. Arrangements will be made to take care of any mortgages, back taxes or other liens that you haven’t agreed to take on, so that these don’t become your problem.
The lawyer doesn’t carry out any physical tests of the property. You should negotiate the right to an inspection by experts in the Agreement. If there are problems you will have to negotiate their resolution with the seller.
The lawyer will also check other issues, which can include property taxes, zoning, other rights to the property, and whether there are any municipal orders to repair or clean up the property.
In purchases of rural properties, we can check for unregistered hydro easements and whether a use permit was issued for the septic system, and whether there any issue with a conservation authority such as the NVCA.
There is no absolute right at law to inspect the property before closing to make sure that it’s in the same condition as when you signed the offer. Make sure that your Agreement includes the right of a final inspection.
COST OF SEARCHES
Disbursements (out-of-pocket expenses) for an older home average $500.00, and about $350.00 for new homes. In the case of rural properties, or properties in older neighbourhoods, the search costs can be considerable. No two titles are the same and therefore the costs will be different from one transaction to the next.
Purchasers will also have to pay Ontario Land Transfer Tax. Click on the link below to calculate the amount of tax you will have to pay in most cases:
A survey is absolutely essential if the lawyer is going to do a complete investigation. Surveys reveal the extent of the Vendor’s title and all physical claims against it. Surveys are also necessary for getting a comment by the City or Township on whether the house and the lot and anything else such as a deck or porch or pool comply with zoning regulations.
- If the seller doesn’t have a current survey, a new one should be done.
- Should be dealt with in the offer to purchase.
- In the absence of a contractual stipulation, a seller has no automatic legal obligation to give you a survey if he doesn’t have one.
- The lawyer will demand correction of any problems he discovers.
Very often, new surveys aren’t available, and since they are so expensive, many purchasers do not want to pay for a new one. In that event, a policy of title insurance may be useful. Title insurance does not provide perfect protection against all risks, however. For more information, please see my page entitled here.
Banks rely on the lawyer to guarantee that the security for the loan to you is perfectly legal in every respect.
The lawyer prepares the mortgage the way the bank wants it, makes sure it is registered properly, and sends a written report to the bank.
Most mortgages contain sections dealing with advance payments, penalties for paying the mortgage off early, keeping the property insured, selling the property to an unqualified purchaser, not making major renovations or a change of use without the bank’s approval, and anything else that alters the security for the loan. Any default will entitle the bank to an eviction order against you, after which they will sell the house to pay back the loan (“power of sale”).
Your lawyer receives a statement of the amount of money needed to close with the seller. This document is called the Statement of Adjustments.
Your lawyer will then calculate the amount of money you need to bring in, on top of your mortgage loan, including Land Transfer Tax, adjustments to the purchase price, legal fees and disbursements, and so on.
Your lawyer will then meet with you, review searches, the statement of adjustments and other matters. They will explain all documents you must sign.
Next, your lawyer will close the deal with the other lawyer electronically, after updating searches, exchanging money for a deed and keys, registering the deed and mortgage, and when all that is complete, they will call you to let you know that the house is officially yours.
After closing, the lawyer sends you a report telling you about tax and mortgage payments, giving his opinion about the title, and giving you the deed and mortgage and other papers.
The above notes are extremely general, are not intended as legal advice, and may not apply in every case. Each home purchase is as unique as you are. Please consult a lawyer before relying on anything contained herein. I would be pleased to answer any questions you may have regarding your home or real estate purchase.
Please feel free to contact me.
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Peter Has been our family estate and Real estate attorney from the start of his career. He and his staff have always been efficient, helpful and ready to help sometimes in trying circumstances. I highly Peter and his team.
Peter and his team handled a transfer of property ownership for us in a professional, timely and cost efficient manner. We highly recommend Peter and his team.
-Sandy & Lynne
I dealt with Peter Lamprey’s office on the purchase of my new home. Jessica was fantastic, mortgage documents were received late so the entire process had to take place on day of closing. She went out of her way to answer all my questions and made sure everything went through without a hitch. Peter explained Everything I needed to know, went through all the paperwork, and answered all the questions I had. I would highly recommend Peter Lampreys office for the purchase/sale of of your home. 10/10
Our experience at Peter Lamprey LL.B was extremely incredible ! We were first time home buyers and the patience and commitment to getting all the paper work in order and finalized was over the top. Jessica was amazing and always made us feel like top priority when I’m sure she was extremely busy with other clients. If you ever need any legal advice or work go to this outstanding lawyers office you will not be disappointed !!!
Such friendly and helpful staff!
-William St. Clair
Peter and his staff have provided professional legal work for my family and companies for years. From real estate transactions to private lending and Wills we have been very pleased with their work. Very conscientious and thorough. Highly recommended.
Peter and his team are great to deal with. They made the process easy for me. The staff respond to all questions quickly and are very friendly in person. I would recommend them to anyone who is buying or selling a property.
Peter and his staff are amazing! They were available for any questions we had and were quick to find out the answers for us. We used them to close both the sale and purchase and they made it quick and painless. Would whole heartedly recommend them and would use them again.
I chose Peter Lamprey’s Law firm, the way they greeted me made me feel like a very important client. Staff was amazing, knowledgeable and available when needed. I had a positive experience.
The team at Peter Lamprey were amazing during my whole experience of buying a home. I felt very comfortable the whole time and would highly recommend their expert service! Thank you
Every time I refer a client to Peter I always hear what a fantastic experience he gave them. He’s friendly and boils down all the legal speak into plain english. Whether you’re dealing with Peter himself or his amazing staff, you’ll be treated like a real person with a unique situation. Need a real estate lawyer? Use Peter Lamprey without a second thought.
My wife and I recently had our wills and POA’s done through Peter and his team. It was a very seamless and thorough process where everything was explained and detailed in a way we could understand. Peter handled our files with professionalism and with a personal touch we appreciated. Thank you!
Peter helped in closing my first home. He was extremely easy to get along with and ensured that everything that we were to sign and discuss was well understood before moving onto the next piece. Without his guidance and down-to-earth approach, I wouldn’t have had such an easy time purchasing my first home. I appreciate you hard work, from your team and yourself. Thank you!
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Peter is very knowledgeable in both Estate Law and Real Estate Law, I have used him personally as well as my clients and I am always happy with the level of service that Peter and his team provides, would highly recommend them
I have used Peter for 2 purchases and 2 sales of homes over the past 18 years. He has always been professional and helpful. His staff is fantastic to work with and have gone above and beyond to help me out each and every time. Peter and his staff have made the entire process pleasant and smooth. I would recommend his law firm to anyone seeking a real estate lawyer.
My husband and I had a great experience with the office. Peter and his staff, specifically Jessica were amazing. Excellent communication and very prompt at responding to any of our 1000 questions. We highly recommend them!
Just want to thank Vanessa for all her help in the legal aspect of refinancing our home. See you soon!
So incredibly impressed with the service I receive each and every time I visit Peter’s office. Jessica, the administrator on my file, was so helpful, friendly and made me feel totally at ease.
I been a client of Peter Lamprey’s since 2012, personally for a home purchase, will, power of attorney’s, etc and of Vanessa’s for our company when we need documents notarized, Commissioner of Oaths, etc. The staff are friendly, knowledgeable and go out of their way to be accommodating. Very happy with the service we receive.
Best lawyer I have ever dealt with!
Peter, Jenna and staff are all very professional and friendly. I have used them for the purchase and sale of my houses and would use them again every time. They are very knowledgeable and quick to respond and answer all of my questions. Would recommend them for all your legal needs.