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
Susanne Harvey-Jedlicska & Sarah Laycock
phone: 403.775.7615
email: susanne@theperfectpad.com |
