What Lawyers Do On a Real Estate Deal
There are more than 100 different
things to be done on a sale, and as many as 200 on a purchase. Following
is a brief list of 10 of the most important ones for each transaction.
On A Purchase
- Review Agreement of Purchase and Sale with the Purchaser.
- Determine how Purchaser wishes to take title, his intended use of
the property and how he intends to finance the transaction.
- Conduct full search of title, taxes, executions, utilities, and compliance
with relevant By-laws.
- After conducting searches, prepare letter of all requisitions on title
to the Vendor's Solicitor.
- Check on survey, insurance, and any tenancies.
- Prepare mortgage documentation for the Bank, including all necessary
affidavits.
- Meet with Purchasers to sign and explain all documents.
- Obtain down payment monies from Purchasers, and mortgage monies from
Bank and convert to a certified cheque payable to the Vendors.
- Attend at Registry Office on day of closing to conduct final sub
searches, register deeds, mortgage, and exchange money for keys with
Vendors' Solicitor.
- Turn keys over to Purchasers and complete certificate of title reports
to Purchasers and Bank.
On A Sale
- Review Agreement of Purchase and Sale with the Vendors.
- Contact Tax Department, tenants, and utilities to obtain current information
for preparation of Statement of Adjustments.
- Prepare new deeds in favour of Purchasers, and all related statements,
warranties, affidavits and undertakings to be signed by Vendor.
- If rental property, prepare notice to tenants and acknow- ledgements
regarding rental terms.
- Obtain mortgage pay-out or assumption statement from the Bank.
- Answer letter of requisition from the Purchaser's Solicitors, and
clear all title problems including mortgages, liens and executions.
- Meet with Vendors to sign and explain all documents.
- Attend at Registry Office on day of closing with Solicitor for Purchasers
and exchange deeds for a certified cheque.
- Pay out outstanding mortgages, real estate commission, and pay over
balance to Vendors.
- Discharge mortgage on title and submit final report to Vendors.
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