Spring is here (more or less) and the house-buying season is upon us. After many years of stagnant housing growth, the Temiskaming Shores area is seeing a sharp increase in the number of new houses, as well as some new condominium development on the New Liskeard waterfront. All this new growth is going to mean more choices for prospective buyers looking to upsize or downsize their home to suit their needs. As a result, it’s very likely that you or someone you know is looking for, or selling, a new home.
Buying a house, whether it’s a starter home, a large family home, or a retirement condo, is a major investment, one that brings a certain amount of risk with it. Working with the right lawyer can help you reduce your risks, and give you the guidance you need to preserve your peace of mind through the stressful process of buying or selling a house. Below are the top five things you need to know to make your real estate deal easier:
1. You need a lawyer. In Ontario, house transactions require a lawyer to register the transaction (and the mortgage, if there is one) at the Land Registry Office. Because you will need to retain a lawyer to represent you, you should start thinking about what kind of lawyer you want guarding your interests sooner rather than later.
2. You need a written agreement. Real property (land and houses) can’t be transferred legally in Ontario without a written and signed agreement between the parties. For those of you who hire a real estate agent, your agent will help you prepare an agreement based on the Ontario Real Estate Association forms, and will guide you through the process of offer and counter-offer until the agreement is signed. If you have retained a lawyer early, you can ask your lawyer to look over this agreement, and advise you with regard to the legality of what’s being offered, and any hidden pitfalls that may affect your rights or liability after the sale is closed.
If you are not retaining a real estate agent, or if your land transaction is more complex, you will need your lawyer to draft an agreement for you. If you do have a more complex transaction, you should consult your lawyer before you sign an agreement. The Purchase and Sale agreement is the most important part of your transaction, and you can expect your lawyer to meet with you, and ask probing questions about the property you are buying or selling and your reasons for doing so. Expect to pay your lawyer, at this stage, by the hour, and not for a flat fee. Your lawyer will probably either prepare the standard OREA form with extensive modifications, or will draft the agreement from scratch, to give you the best protection possible.
3. You need to know how much you’re paying. For residential real estate transactions, most lawyers charge a flat fee. But in addition to this flat fee will be additional expenses, like title searching and registration fees, fees for off-title searches, and title insurance. Make sure to ask about these extra fees when you make the initial phone call.
4. Know what you’re getting for your money. Some lawyers will go out their way to have contact with their clients, but most of the time you may only meet with your lawyer for a short session on the closing day, to sign your documents. Make sure you understand how much “face time” you’re going to get with your lawyer, and make sure you’re happy with that. More “face time” translates to more opportunities to ask your lawyer questions, get advice and get reassurance over a stressful transaction. It usually also means higher fees.
5. Earlier is better. Your transaction will go more smoothly if you give thought to who you want to represent you as early as possible. Your lawyer will have a lot of behind the scenes work to do to get ready for your closing, so retaining him or her at the last minute will put an unnecessary time crunch to get these things done, leading to the possibility of mistakes. Furthermore, your Agreement of Purchase and Sale will have a number of deadlines that your lawyer will need to know about well in advance. Retain early and your purchase or sale will go much more smoothly.
6. Don’t be afraid to ask questions. A purchase or sale of a home is one of the most important legal transactions you will make in your life. If you’re confused about something, ask for clarifications. A good lawyer should be able to explain everything to you in terms you’re comfortable with. Often, the questions you ask are at least as important as the questions your lawyer asks you, and can reveal issues that would otherwise have sunk your transaction, or caused you long-term problems after the sale is complete. When in doubt, ask.
If you follow these six points, you will be well on your way to having as smooth and pain-free a purchase and sale as possible. If you have any questions about these six points or any other aspect of your real estate transaction, please feel welcome to call my office at 705-680-0022. We are always ready to help.