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A. Simply put, the answer is no. You do not need a lawyer to close a real estate transaction more than you need a doctor to remove your appendix. However, it is a risk that most people are not prepared to take. A real estate lawyer has received extensive training in Contract and Property Law. He is therefore in a position to protect the interests of his clients to the fullest extent and can resolve problems as they arise. In any given transaction, the lawyer is often called upon to give his personal and professional undertaking to complete certain tasks. A common example of this is the undertaking to discharge a mortgage in the course of a sale. Lawyers are bound by the Rules of Professional Conduct which requires them to give effect to their undertakings. Undertakings create a climate of confidence between lawyers and contribute to a large extent to the efficiency of the convenyancing process. Q. Can I consult a lawyer prior to signing an Agreement of Purchase and Sale? A. Most lawyers will examine an agreement free of charge provided they will be hired to complete the transaction. Many agreements will state that the transaction is conditional upon having your lawyer review and be satisfied with the contents of the Agrement of Purchase and Sale. This provides both a Purchaser and a Vendor with peace of mind knowing that they are not being taken in and that their lawyer will protect them by suggesting amendments if necessary. Q. Can both the Vendor and Purchaser have the same lawyer? A. In the Province of Ontario, most parties to an Agreement of Purchase and Sale will have their own lawyers. It may however occur that both parties wish to have the same lawyer act on their behalf. The lawyers' Rules of Professional Conduct provide that the same lawyer can act for both parties provided that both are aware of the dual retainer, both acknowledge that no information will be kept confidential as between those parties and should a conflict arise, the lawyer must withdraw from both files. Q. What is Title Insurance? A. Title Insurance allows purchasers to secure an insurance policy to insure against certain risks such as the absence of an up-dated building location survey, encroachments, municpal work orders, zoning violations, etc. Your lawyer can conduct various searches to confirm compliance with the foregoing. However, Title Insurance will often complement and in some cases even replace the need to conduct these searches since coverage is available should a problem ever arise. Your lawyer will explain the advantages of Title Insurance so that you can choose the coverage which you feel best suits your needs. Q. How much time do you require to complete my transaction? A. In a sale, our office requires at least one week to prepare the documents and to secure tax information, the mortgage discharge statements and to generally complete the transaction. In a purchase, our office requires at least two to three weeks to complete the various searches such as the title search, the compliance search, tax searches, sheriff searches and to correspond with the various authorities to ensure that a purchaser will have clear title. Should a title problem be discovered all necessary steps will be taken to correct the problem prior to the completion of the transaction. Q. Do I need a lawyer to renew my mortgage? A. A lawyer is not needed for a renewal should you simply wish to renew. However, a lawyer is generally needed to increase your existing mortgage beyond its original limits and to discharge the former mortgage. Q. What tasks am I responsible for in a purchase or sale? A. In a purchase, you must secure the necessary financing to complete the transaction. You will also be asked to arrange payment agreements with the various service providers such as hydro, cable, gas, water and municpal taxes as many of these involve pre-authorized bank withdrawls from your account. In a sale, and despite the fact that your lawyer will also give notice to the service providers of the change in ownership, you will also be asked to give notice to the service providers to your home such as hydro, cable, water, gas and home insurance as of the date of closing and to close these accounts. You will, of course, receive a final account for those services you have been provided with up to the sale of your home. |
1417 Laurier Street Box 449, Rockland, Ontario, Canada K4K 1K5
Phone: (613) 446-5060, Fax: (613) 446-6475, e-mail:marcsimard.law@videotron.ca