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The Buyer’s Lawyer
The following is a summary of what you can expect when dealing with your lawyer to close the purchase of your home.
Referral of the “Deal”
How does it arrive?
- When the Buyer decides which Lawyer to use to complete their transaction, Vision Network Real Estate Ltd. will fax a copy of the Agreement of Purchase and Sale to the Lawyer’s office.
First Contact with the Client
Who calls who?
- Lawyer’s office will contact the Buyer to explain the procedure that will follow. At this time they will be asked for additional information i.e. Full legal name, Date of birth, the lender who will hold their mortgage. etc.
Meetings
- Usually approximately one to two weeks before closing we will contact the Buyer to arrange a time to come in and sign all required documentation. At that time they will be required to bring in a certified cheque/bank draft to cover their down payment and all closing costs.
Instructions
- Buyer must sign all documentation with their mortgage company and set up fire insurance on the property to be purchased. Buyer must also contact the utility companies in order to set up an account.
Activities and Timelines
What do we spend our time doing
- Once the waivers are signed the Lawyer begins a title search and when the title search is complete we prepare all required documentation.
Fees and Disbursements
FOR A “TYPICAL” SINGLE FAMILY HOME OR CONDOMINIUM PURCHASE
- Fee for the Lawyer’s Time
- Disbursements – searches, teraview, registrations, executions, title insurance, condominium Status Certificate.
- Title insurance vs. survey (when one is required). Title Insurance is required when a recent survey is not available. This price varies depending on the purchase price. Under $200,000.00 title insurance is $324.00 over $200,000.00 - $500,000.00 title insurance is $378.00. Even when a survey is available we highly recommend title insurance for numerous reasons etc. Property Tax Issues, Fraud, Zoning etc.
THE EXACT COST IS NOT KNOWABLE. WE CAN SAY THAT 90% OF THE TIME DISBURSEMENTS (EXCLUDING LAND TRANSFER TAX) IS SOMEWHERE BETWEEN – $525.00 - $725.00.
Why? - The title search can be simple or involved; the execution search can be smaller or larger; a sub-search at closing might be required; title insurance might be required by the mortgagee. In addition, disbursement-like expenses might apply, E.g. prepaid expenses chargeable to the buyer.
IT IS MORE EXPENSIVE TO DO THE LEGAL WORK FOR THE PURCHASE OF A MULTI-FAMILY PROPERTY BECAUSE MORE DOCUMENTS ARE REQUIRED AND MORE TIME IS SPENT ON THEIR EXAMINATION.
EXPENSES MIGHT BE MORE WHEN THE TYPE OF FINANCING CHOSEN BY THE BUYER REQUIRES MORE DOCUMENTATION AND EXAMINATION TIME ON THE PART OF THE LAWYER.
When does the client come back into the picture?
- Sign all documentation one to two weeks prior to the closing date
Closing Day
- The Lawyer will contact the Buyer and advise a time to pick up keys once all monies and all documentation have been exchange.
Financing
- The Mortgage Company will forward the mortgage funds to the Lawyer’s office once all Buyer’s and mortgage broker’s conditions have been met.
- The Buyer will be told how much money is to be brought to the Lawyer’s office. This money is for the down payment and to pay the costs incurred by the lawyer.
Problems/Pitfalls
Not allowing enough time for third parties, such as lenders, appraisers, lawyers, condominium property managers, inspectors and City Hall to complete their work.
Buyers not providing, in a timely fashion, the documents their lenders or lawyers require.
Buyers not being aware that the sale can occur at anytime during the day of closing. It is impossible for your lawyer to predict when the sale will actually occur.
Buyers not budgeting enough money to cover the costs of buying the house.
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