Every Real Estate transaction involves both legal and financial obligations that must be properly reviewed and documented. It is essential to seek the services of a trusted and experienced lawyer before you sign an agreement of purchase and sale. The documents that you sign are binding legal documents – it is important that you have a lawyer to ensure that the documents are negotiated in your best interests, are explained to you thoroughly and that the entire transaction meets your needs, without surprises. While real estate transactions are “routine” and take place every day, there are unique considerations that must be addressed in every transaction.
We approach each case with keenness and attention to detail. We will carefully review the agreement of purchase and sale, keeping in mind your goals and your best interests. You should only sign the Agreement if it meets all your needs.
At Deol & Nagpal Law Firm LLP, we customize our services to our client’s needs. Whether you are a first-time home buyer or an experienced investor, we will ensure that we are providing you with services that meet your needs. Our team of lawyers has experience in all areas of Real Estate Law, including the purchase and sale of residential, condominium, and commercial property, as well as mortgages, and residential and commercial leasing.
Buying a Condominium Property:
If you are thinking of investing in a condominium as a rental property or would like to try living the condominium way of life, it is important to have a lawyer to guide you through the buying process. The purchase of a condominium is different from the purchase of any other type of home. When purchasing a condominium, you have to consider the credibility, debts, liabilities, assets, and reliability of the seller and the Condominium Corporation. You also need to understand the rules and regulations of the condominium building. For example, are there limits on renting out the condo units? Is smoking allowed? Are there noise restrictions?
We can walk you through every step of your purchase. We start by reviewing the Agreement of Purchase and Sale. Among other things, the Agreement should address the issue of parking and lockers.
It is especially important to seek the advice and guidance of a Real Estate Lawyer before waiving any conditions of the Agreement. Missteps can end up costing you a lot, and they can be avoided.
For those purchasing a new condominium, there are unique issues that affect the closing of the sale. New condominiums are subject to an interim occupancy period where the purchaser pays the developer:
- Monthly sums that consist of common monthly expense
- Interest on deferred purchase price, and
- Estimate of apportioned monthly realty taxes, until closing
Occupancy can only occur once the municipality permits the developer to begin occupancy. Except for some adjustments, usually, the amount you pay as occupancy fees will not be credited to the final purchase price.
You will also have to pay the remainder of the purchase price without securing a mortgage on the unit. It isn’t possible to secure a mortgage on the occupancy date. The final closing can be any time after the interim occupancy period. This varies depending on the schedule of occupancy as per the Ontario New Home Warranty Plan, and the final closing agreed upon in the Agreement of Purchase and Sale.
Before the final closing, the developer will have to register the unit’s declaration and transfer the title to the buyer. When you receive the title of purchase, on the final closing, that’s when you can secure a mortgage.
Before Closing a Real estate Transaction:
Inspection:
Consider getting a professional inspector to assess the state of the property. Remember to review the timelines in the agreement for inspection.
Mortgages / Line of Credits
Before you waive the financing conditions in the agreement, make arrangements for your mortgage. Upon approval of the loan, provide the lender with your lawyer’s information for directions on the next step. Your lawyer must deal with the financial institution to make the funds available on the closing date.
Property Insurance:
When purchasing property, the property becomes yours on closing. If something happens to the property (for example, a fire or flood), it is now your loss even if you haven’t moved in yet. You should arrange for property and liability insurance before or on the closing date. It will help you avoid any delays or inconveniences on the date of closing.
ADDITIONAL COSTS OF CLOSING
There are other costs that you need to be aware of, in addition to the purchase price of the property. These expenses include Canada Mortgage and Housing Corporation (“CMHC”) premiums, title insurance, land transfer tax, disbursements, registration fees, legal fees and applicable HST.
If you are purchasing a new property, you may also incur Tarion enrollment fees, development fees, driveway paving, and hydrometer installation, among other charges.
To avoid any surprise, please feel free to schedule an appointment with our office to understand the complexities of your agreement of purchase and sale, if any.
Cost Effective Service:
Deol & Nagpal Law Firm LLP understands that a real estate transaction is both exciting and stressful, whether you are the buyer or seller. We will guide you through the transaction, from prior to signing the Agreement right up to the closing date. We meet with clients personally to listen to their desires, resolve issues and provide guidance. Our legal fees are clearly explained so that our clients understand the charges.
Whatever Real Estate Transaction that you are in or are looking to dive into, be it Commercial or Residential, you can contact us at: 905-796-0911