Legal Information For Purchasing a Property
Before you buy or sell a property it is important to be aware of the legal issues and matters surrounding the real estate transaction. Being informed ensures you will not have any unpleasant surprises and will help to make the buying and selling process an enjoyable experience.
There are legal expenses associated with the transaction of Real Estate and these fees are above and beyond the price of the property. Consult with your lawyer or ask us for referrals of experienced and knowledgeable Real Estate Law Professionals.
Below is a list of commonly asked questions about purchasing a property.
I am buying a home. When do I need to deliver the balance of my funds?
Typically, your lawyer will need to meet with you approximately 10 days before the closing. Though there are factors that affect this timing, plan on having your funds ready on or about that time frame.
I have been pre-approved for a mortgage, is this good enough to waive conditions?
No, you must ensure the property you are purchasing also passes the mortgage company’s financial test. Once the mortgage company approves both you and the property that you have made the offer on then you can waive your financing condition.
What factors should I consider in choosing a real estate lawyer?
The factors you should concentrate are the lawyer’s experience and the way that they handle your file. Referrals and recommmendation are always a good idea. Working with several Legal firms in Calgary, we will assist with referring a qualified legal professional.
What are the items that make up my legal bill?
Essentially, there are 4 major items that make up your legal bill. There are the legal fees themselves, other fees and charges, actual payments to third parties (disbursements) and GST (PST may apply in other provinces).
When can I expect to meet my Real Estate lawyer?
Typically, you will meet with your Real Estate lawyer at least 2 weeks before the possession date. This gives your lawyer enough time to complete everything required and get your deal closed on time. Should you be selling your home, information necessary for the sale will need to be delivered to the lawyer at least 2 weeks prior to the possession date.
What do I own when I buy a condominium?
When you buy a condominium unit, you acquire space that is often bounded by walls, floors and ceilings. In some circumstances you also buy a parking stall. In a bare land unit, you buy an interest in the actual land and anything built on it.
Should financing be a condition of my offer to the Seller?
When you are preapproved this simply means that you personally are approved. However, this does not mean that the financing institution has approved the property you are planning to buy. There is the possibility that the bank’s appraisal of the property isn’t high enough to justify the price you are offering. You should insist that financing be a condition of your purchase.
The financing has been approved for the property, is there anything else I need to do?
Typically, you are approved subject to your providing of the documentation your broker or mortgage company relied on to approve the mortgage. You may have to provide a number of support documents prior to the mortgage being fully approved. Check with your mortgage specialist well in advance of the closing date to make sure that they have everything they need to proceed.
I need a new mortgage to purchase the home, what are the steps that I have to take?
When you purchase a property you should ensure that the financing of your purchase is an actual condition of the purchase. You may have been preapproved personally but this does not mean that the unit or property you intend to purchase has been approved at the price you negotiated. By making financing a condition you protect yourself against the possibility that you cannot obtain that mortgage. You should also ensure that you have the approval in writing before waiving the mortgage condition.
Reprinted by permission from LeClair Thiebault and www.calgarylaw.com