So you’ve put an offer on your first home, the Seller has accepted, the bank has approved your financing, and the home inspection passed with flying colours. Now what?
Most first time home-buyers are unfamiliar with the process of completing the purchase and sale of a home, and the lawyer’s role through it all. The following outlines the major steps typically taken by the lawyers to complete the real estate sale transaction, from the perspective of you the Buyer:
Your realtor informs your lawyer and your bank that the contract is now unconditional, and your bank sends instructions to your lawyer to prepare the mortgage paperwork.
The Seller’s realtor sends the Real Estate Instructions, including a copy of the contract and all amendments, to both the Seller’s lawyer and your lawyer.
Your lawyer will open a new file in your name and start conducting due diligence on your behalf. This includes review of the purchase contract, title to the property, any liens/encumbrances on the property, and, if applicable, review of the Real Property Report or condominium documents.
Your lawyer will start preparing the mortgage documents and related paperwork.
The Seller’s lawyer will send your lawyer the paperwork necessary to transfer title to you, which your lawyer will review thoroughly.
Financial calculations are prepared by your lawyer and sent to you. The financial calculations tell you, how much of the remaining down payment you will need to come up with to complete the purchase.
Your lawyer sets an appointment with you to sign all of the above mentioned paperwork. He or she will carefully review with you the Seller’s paperwork and the bank’s paperwork to ensure it reflects the agreed to terms.
Your lawyer will send all the necessary paperwork to the Land Titles Office to register the title to your new home in your name.
In cooperation with your bank, your lawyer will organize getting your mortgage funds deposited to their trust account to eventually make its way over to the Seller. In exchange for the release of funds, your lawyer can compel the Seller’s lawyer to authorize release of keys to you.
The Seller’s lawyer instructs the Seller’s realtor to release keys to you. Congratulations on becoming a new homeowner!
Of course, this is how the sale would go in an ideal world; issues and obstacles do come up from time to time. That’s why it’s so important to hire an experienced real estate lawyer, who has the right knowledge and skill to deal with these issues as smoothly as possible when they arise. Forum Law LLP has those very lawyers. Please contact us today with all your real estate inquiries.
