Legal Advice When You Buy Your Home by Toronto Lawyer Robert
Coates
Legal Issues
Buying a home is likely the most expensive investment that you will make
in your lifetime. The Agreement of Purchase and Sale is a contract which
sets out the rights and obligations between the Purchaser and the Vendor.
You need to have efficient and cost effective legal advice for this most
important decision. Seeing me as your lawyer can help to avoid problems
later on. You need to feel secure in the advice that you receive. You need
to feel comfortable with your investment.
Will you own your home together or with another person. If so, do you need
a co-ownership agreement? Should both names be on title? As joint tenants
or as tenants-in-common? What is the nature of a mortgage? What are your
rights and obligations in regard to the finance company or bank?
Cost of Purchase
You will need to plan for all of the costs of the purchase, including legal
fees and disbursements, land transfer tax, document registration fees, search
fees and any additional adjustments, such as realty taxes and fuel oil. None
of these costs is included in the purchase price.
But once you have signed the Agreement of Purchase and Sale, the process
has only just begun. Once the Vendor has accepted your offer, I, as your
lawyer, start to work to ensure that the Agreement is met that you have good
and marketable title to the property on closing.
In addition to completing all of the necessary searches to title and other
relevant searches, I advise you on a continual basis. I prepare your mortgage
documents and explain them to you. I check the statement of adjustments and
explain the purpose of all documentation that you will sign and that will
be provided on closing by the Vendor's lawyer.
I arrange for the closing of the transaction. You must obtain a binder letter
of insurance for the closing date setting out your interests and those of
the Mortgagee. I will make sure you have the keys to the property.
In General
In general, I make certain that, on closing, you will have good title to
the property. I ensure that no one else has a claim to the property and that
there are no liens on the property as of the date of closing.
Why do you need good title? Sometime in the future you may wish to sell
your home. You will need to prove to the purchaser of your home that you
have good title. A title search reveals who is the registered owner and what
encumbrances, if any, are on title. A current survey will deal with boundary
issues, encroachments and easements and where they are located. Searches
for works orders and property bylaws ensures that you will be forced to comply
with orders after the deal closes. If problems are identified by the searches,
they can be rectified prior to closing.
Two Ways to Ensure Good Title
You and I need to decide which is the best method to protect your interests.
1. Lawyer's opinion on title:
If you select this option, I will provide to you a Letter of Opinion stating
that in my opinion you have good and marketable title to the property. I
will also detail the results of my searches and advise you of any outstanding
issues that affect the title to the property.
2. Title Insurance:
Title insurance can now be purchased to protect your interests in the property.
Title insurance protects against loss that you might suffer due to title
related problems as detailed in the title insurance policy. In the case of
defect, your claim would be to the title insurance company for compensation
on the basis of the contract that you purchased from them at the time of
closing the transaction. There are various title insurance companies that
now provide title insurance.
THIS IS AN IMPORTANT DECISION. If you are uncertain as to which option you
should choose, discuss it with me and I will help you come to a proper decision.
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