What is the Function of a Real Estate Lawyer?

Once we have chosen a lawyer to act on our purchase of a home, what will the lawyer be doing for us? Also, is there anything that we will have to do once our lawyer is retained?

ANSWER: The primary function of a real estate lawyer in every transaction is to protect the client, in this case, the buyer. This means conducting all searches necessary to ensure the buyer will, on closing, acquire title to the home free of any adverse claims.

The following is a brief outline of searches and activities which are conducted in every situation on behalf of a buyer.

1. Search Title: A search of the title to the house is conducted at the Land Registry office ( Registry ) to ensure the Sellers have proper ownership of the home. In other words, your lawyer will make certain the Sellers have actually acquired title through a proper transfer, or chain of title, from all previous owners.
2. Handle Claims: The search of title at the Registry will also reveal any claims registered on title against the home. Typically, a mortgage is found to exist on title. Any such claims are noted and forwarded to the seller's lawyer to be remedied and removed from the title prior to the closing date.
3. Other Searches: Searches are then conducted of various city departments and utilities to ensure no outstanding issues exist with respect to the particular home being purchased. The list of searches include:
   1. Building/Zoning/local improvement departments - a search is conducted with these city/municipal departments to ensure among other matters, that proper zoning exists for the home, and that there are no outstanding work orders in existence;
   2. A search is conducted to ensure taxes have been paid up to the date of closing;
   3. A search is conducted to ensure all utility accounts (hydro/gas etc.) are paid in full up to the date of closing.
   Again, if any deficiencies are found to exist, the sellers lawyer is asked to remedy the deficiencies prior to closing.
   4. Review Documents: Once the search process is completed, and as responses are received, various closing documents are prepared and exchanged between the parties solicitors for review and approval.
   5. Mortgage Documents Prepared: At the same time, mortgage preparation and registration instructions are received by the buyer's lawyer from the buyer s lending institution. Mortgage documents are then prepared and are usually forwarded to the lending institution for review and approval. The lending institution usually also requires an interim opinion on the validity of title from the buyer s lawyer prior to the closing date, and, prior to the mortgage funds being advanced.
   6. Review with clients: Before the closing date, you will meet with your lawyer to review and execute various documents. More often than not, this meeting will occur two to three days prior to the closing date.

   The above outlines some of the more common searches conducted in all real estate transactions. Other searches are often required and are dependent upon the particular situation. However, the above should provide some idea of what services are provided by a buyer's lawyer.During this process, the buyer is also required to conduct certain initial legwork. This includes:

4. Finalizing the mortgage application process with your lending institution;

5. 1. Directing your lending institution to forward the mortgage instructions to your lawyer; and,
   2. Arranging fire insurance and directing the insurance company to forward a confirmation letter (referred to as a binder letter) to your lawyer.
   Every law firm varies in its standard of practice. Depending on the particular firm, you may be expected to undertake more tasks than the above. The best method to resolve any confusion as to what tasks you will be responsible for is to sit down with your lawyer and discuss each party' s responsibilities. This will help to minimize the chance of any last minute confusion or problems arising.

   Finally, make certain you are comfortable with your lawyer and are able to reach him or her throughout this process. Recognizing this is a significant purchase, you should be able to discuss with your lawyer any questions or concerns whenever the need arises. Best of luck!

Courtesy of Victor Hussein, Real Estate Lawyer www.vhlaw.ca