Hiring the Right Legal Aid at the Right Time
Buying a new home, or selling your home for that matter, can be an extremely stressful task. Knowing how and what to negotiate, handling any surprises brought on by the other party, preparing and reviewing legal documents, understanding how to interpret those documents; it’s a lot to take on. Typically, this is why hiring a real estate professional to help with the process makes so much sense. But you may also want to consider bringing legal aid on board early in the process. Frequently, Canadian Home buyers wait until a deal is done to bring in legal aid; they will typically sign on the dotted line first before taking the agreement to a lawyer who then registers the deed, does a title search, and handles the transfer of funds. We all know that legal aid is required for this process, but we usually ignore bringing on the aid until the very last minute, as we all want to keep our legal fees at a minimum. With that said, hiring the right legal aid early in the home-buying process can actually save you time, risk and money.
Buying or selling a home is possibly the largest transaction you will ever make. A good lawyer or paralegal can ensure that the transaction is done right, and that all of your legal rights and protections as a buyer or a seller are adhered to. Having legal aid early in the process can make a world of difference at the end of the day. People can be sneaky, don’t ever forget that. If the other party has a lawyer right from the start, their lawyer may include fine print or tricky wording that can put you in a bind once the documents are signed. If you are armed with your own legal aid, they will have the knowledge required to thoroughly comb through the agreement and pin point any clauses or wording that would put you in a bad situation.
On this note, a lawyer can also re-word and adjust aspects of the agreement in your favor. For example, a standard wording in a purchase agreement would be “conditional on financing”. However, a better wording would be “the offer is conditional on the purchaser receiving the financing he/she desires”. This will give you the option to opt out if the bank isn’t able to offer you fair financing rates. Otherwise, you may be forced into an agreement at a financing rate that you are not comfortable with.
If you plan on investing in a pre-construction development condominium, then the right legal aid will be especially important. These types of purchases can be very lucrative, but are typically riddled with fine print, added charges and catches that the average home buyer won’t notice. Agreements related to pre-condo development can often run 30-50 pages in length, and can also present some very tricky wording. For example, builders will often offer incentive to invest in their projects. One such incentive may be the builder offering to waive maintenance fees for a certain amount of time. However, the agreement itself will actually offer a rebate that would equate to what the builder thinks will be the amount that you would have paid in maintenance. What’s more is that buyers may also be surprised when their final purchase price equates to a much larger amount then they had initially thought. Builders can add on charges related to warranty protection, occupancy delays, property taxes, landscaping, development charges, and a whole lot more. A good legal aid can work around this by requesting to cap the closing costs, giving you a much more accurate idea of the final number.
Some real estate companies will offer you an experienced real estate lawyer at no extra cost, provided you close the deal with them. If this isn’t being offered, then you’d be wise to seek the help yourself. Your real estate professional will likely be able to recommend you a suitable lawyer in any case. It is generally recommended that whoever you hire should spend 90% of their time working within Real Estate. The last thing you want is to hire a “jack of all trades” who may miss important points throughout the legal proceedings. A lawyer who spends the majority of their time working in Real Estate related matters will be able to handle your needs with ease. Pricing can range greatly, but choosing the “cheapest” option won’t necessarily be your best move. This s a complicated transaction and skimping out on your legal aid may cost you more than hiring the right help from the start.
If you have any questions or concerns, please reach out to CMG Toronto for the best that the city has to offer.
