If you plan to sell your home in Ontario, a real estate lawyer is your first line of defense. So, you might think, what does a real estate lawyer do for the sellers in Ontario?

You should know that selling a home in Ontario is not just finding a buyer and signing on the dotted line. The process involves legal complexities that can make or break your deal.

A real estate lawyer in Ontario handles legal documents, ensures a smooth transfer of ownership, and protects you from disputes after the sale.

A lawyer ensures you’re fully protected and your sale complies with Ontario laws.

This blog breaks down the role of a real estate lawyer in Toronto and why you need one when selling your real property.

What Does a Real Estate Lawyer Do for the Sellers in Ontario?

1. A Lawyer Reviews and Prepares the Agreement of Purchase and Sale

The Agreement of Purchase and Sale is the backbone of your home sale. It outlines every term and condition of the deal. A mistake here can lead to disputes or even legal trouble.

Your lawyer will review the agreement line by line. They ensure the terms protect your interests and comply with Ontario’s real estate laws.

They also explain complicated clauses. This helps you understand exactly what you’re agreeing to before you sign.

Key Components a Lawyer Reviews

  • Price: They check if the listed price aligns with the agreed terms.
  • Closing Date: They verify that the timeline fits your schedule and circumstances.
  • Conditions: These could include home inspections, financing approvals, or selling another property. Your lawyer ensures these conditions are fair and realistic.
  • Contingencies: If certain terms aren’t met, the purchase agreement may fall through. Your lawyer identifies these and prepares for potential outcomes.

A real estate law firm ensures nothing is overlooked. They prevent unfavorable clauses that could harm you financially or legally.

2. A Lawyer Conducts Title Searches and Resolves Issues

Imagine selling your home and finding out there’s a legal claim against it. That could delay the sale or cancel the deal entirely.

A title search is a critical step in selling your home. It confirms that you legally own the property and have the right to sell it.

Your attorney checks the public records for title issues. He looks for liens, unpaid taxes, or disputes over ownership.

If a problem shows up, your lawyer steps in to fix it. They’ll handle issues like:

  • Liens: If you owe money, they work with creditors to clear the debt.
  • Errors in Records: They correct mistakes in ownership or property details.
  • Disputes: If someone challenges your ownership, they’ll resolve it legally.

They communicate with all parties buying or selling a home to clear the title insurance quickly. This avoids delays and ensures the sale moves forward without hiccups.

Read Also: What Does a Real Estate Lawyer Do?

3. A Lawyer Manages Mortgage Discharge and Financial Obligations

If you have a mortgage, it must be cleared before selling your home. This is called a mortgage discharge.

You need a real estate lawyer to handle this process. They contact your lender or real estate agent to get a discharge statement. This document shows the exact amount you owe.

Once the sale closes, your lawyer ensures the mortgage is paid off. They also make sure the lender removes their claim on your property title.

This step protects you from future legal or financial complications.

Financial Adjustments

Selling a home involves more than just the sale price. There are financial adjustments to consider.

Your lawyer calculates adjustments for property taxes, utilities, and other shared costs.

For example:

  • Property Taxes: If you’ve prepaid taxes, the buyer reimburses you for the unused portion.
  • Utilities: Any outstanding bills are prorated between you and the buyer.

Your lawyer ensures these amounts are accurate and fair. They’ll include these details in the final statement of adjustments.

4. A Lawyer Prepares and Reviews Closing Documents

Closing a home sale requires several critical documentation. These include:

  • Deed: Transfers ownership of the property to the buyer.
  • Statement of Adjustments: Outlines financial adjustments for taxes, utilities, and other costs.
  • Affidavits: Legal declarations confirming facts, like no undisclosed liens on the property.
  • Closing Statement: Summarizes all financial transactions related to the sale.

Every detail in these documents must be accurate. Even a small error can delay the sale or lead to legal issues.

Your lawyer double-checks names, amounts, and dates. They ensure the paperwork meets Ontario’s legal requirements.

They also verify that the buyer’s lawyer and financial institution receive the correct information.

With their expertise, you can rest assured the closing process stays on track.

5. A Lawyer Facilitates the Closing Process

Your lawyer works closely with the buyer’s lawyer to ensure all documents are signed and exchanged on time.

A lawyer can also communicate with financial institutions to confirm the mortgage discharge and release of funds.

If any issues arise, your lawyer handles them quickly. This keeps the process moving without unnecessary delays.

After the sale is finalized, it’s time to transfer the funds. Your lawyer manages this process with precision.

They receive the buyer’s payment and verify the amount. Once confirmed, they pay off any outstanding debts like mortgages or liens.

The remaining balance is transferred directly to your account. Your lawyer ensures you get your money quickly and without complications.

6. A Lawyer Provides Legal Advice to Buyers and Sellers

When selling a home, you must disclose key property details. This includes any known issues, like structural defects or water damage.

Your lawyer ensures you meet these obligations. They’ll explain what needs to be shared and how to document it properly.

Failure to disclose can lead to legal disputes later. With a lawyer’s guidance, you avoid future liabilities and keep the sale legally sound.

Regulatory Compliance

Every real estate transaction in Ontario must follow provincial laws. Your lawyer ensures your sale complies with these regulations.

Your real estate lawyer can review every step of the process, from preparing documents to transferring ownership.

If there are local zoning or bylaw concerns, your lawyer addresses them promptly.

Their expertise ensures your sale adheres to all legal standards, protecting you from penalties or delays.

Partner with Cowan and Carter to Sell Your House in Ontario with Confidence

Selling a home in Ontario can feel overwhelming. A real estate lawyer simplifies the process and protects your best interests every step of the way.

At Cowan and Carter Law Firm, our experienced real estate lawyers in Ontario will guide you through every stage of the process. Let us help you close the deal smoothly and securely. Reach out now to discuss your case and get expert legal assistance.

If you are in a civil dispute, our experienced civil lawyers in Toronto are available to advise you. We ensure that your interests are protected in a civil case. Contact us today for consultation.

 

Published on January 16, 2025