Talk to your mortgage company before the home closing
BURLINGTON REAL ESTATE NEWS
ENSURE YOU TALK TO YOUR MORTGAGE COMPANY
Many prudent buyers will not put an offer on a home until they have some type of pre-approval from their mortgage company.
On finalizing the deal its important for the client to have a detailed meeting with their mortgage representative to ensure they are aware of all the conditions.
For whatever reason when people come in to see a real estate lawyer they seem to be under the impression that we have input in their mortgage. We don’t.
As the real estate lawyer my job is to convey the terms to you, ensure you understand them and that you have accepted them. Its wise for you the client to have read the relevant documents and consulted with your mortgage broker.
At the last minute I have had clients seem surprised by the mortgage terms or that there is a misunderstanding from what their broker initially told them. At this stage, it’s the client’s responsibility to immediately follow up with their broker or mortgage representative and confirm the details. This can become an urgent matter if the closing is only a day or two away.
A common misconception that clients may have is thinking that the real estate lawyer is responsible for negotiating any terms with the lender.
As the real estate lawyer we are legally bound in a real estate closing as acting for not only you the client but also the lender. Therefore, we have legal obligations to both parties.
As a rule of thumb, you should review the terms of your mortgage in detail well in advance of the closing date.
WHAT HAPPENS ON THE DAY OF CLOSING?
On the day of your closing the real estate lawyer is to officially register the mortgage on the title of your property. The mortgage is referred to as a charge. The terms of your mortgage are also registered on title. Basically, what this means is that if a property search were to be performed on your home. It would reveal you as the owner and that there is a mortgage on the property and the company who holds that mortgage.
IS THERE A REAL ESTATE LAWYER NEAR ME?
If you are buying a home or selling contact our office to speak with a real estate lawyer in Burlington.
I provide legal services in Burlington, Milton, Hamilton and Oakville.
My address is 901 Guelph Line, Burlington.
You can also call or text at 416-505-4901 OR call Toll Free: 1 (800) 939-9211
REAL ESTATE LAW DOCUMENTS
BURLINGTON REAL ESTATE NEWS
REAL ESTATE LAW DOCUMENTS
In a series of blog posts I discussed the agreement of purchase and sale.
In this blog post I will briefly discuss the Statement of Adjustments
WHAT IS A STATEMENT OF ADJUSTMENTS
The seller’s real estate lawyer
In a real estate home closing the real estate lawyer acting for the seller will prepare a document entitled Statement of Adjustments. I have briefly discussed this document in a previous post entitled, Real Estate Law. Do the Math!
A good real estate lawyer will have his or her clients review the Statement of Adjustments with their client for accuracy.
The main purpose of this document is to identify the final sum of funds that the seller’s real estate lawyer will require on the day of closing.
The purchaser’s real estate lawyer
The Statement of Adjustments will be forwarded to the purchaser’s real estate lawyer who will then review it with his or her client for accuracy.
Generally, at my law office I will email the document directly to my clients prior to closing and seek their approval. Again another reason why its good to do the math in advance.
HOW MUCH MONEY WILL BE NEEDED
Many real estate law offices will use special software designed for real estate closings. This software will complete the calculations. However, in its most basic form the Statement of Adjustments will identify the purchase price minus the deposit. It will then provide for the property taxes the seller has paid out up to the date of closing. It will identify what portion is remaining for property taxes for the year.
In the case of condos there can be an additional line for common expenses.
If you don’t understand the Statement of Adjustments ask your lawyer. Remember, its good to know the exact number so there are no surprises on the day of closing.
IS THERE A REAL ESTATE LAWYER NEAR ME?
If you are buying a home or selling contact our office to speak with a real estate lawyer in Burlington.
I provide legal services in Burlington, Milton, Hamilton and Oakville.
My address is 901 Guelph Line, Burlington.
You can also call or text at 416-505-4901 OR call Toll Free: 1 (800) 939-9211
WHAT IS A TITLE SEARCH?
WHAT IS A TITLE SEARCH?
There isn’t any real estate lawyer in Ontario that won’t close a on a home without performing a title search. A title search is performed by the real estate lawyer or a conveyancer who specializes in the area.
Essentially, a title search will be ensuring that the property is free from any liens, that the vendor (seller) actually owns the property. That there are no legal issues affecting the vendors ownership and usage of the property. A title search will ensure that the vendor’s purchase from any previous seller was legally compliant.
A title search also reveals what rights the local municipality may have with respect to your property or utility companies. For example, local municipalities have certain access rights to ensure drainage. A title search also reveals whether or not the property and the land it is situated on and its adjacent land and or lots are in legal compliance with the Planning Act of Ontario.
The above is just some of the issues a title search can reveal.
CAN I OPT TO NOT HAVE ONE?
There are some clients who seem to think they shouldn’t bother with a title search. Generally, a real estate lawyer in Ontario will not close on a property until they have performed a title search. The cost is quite nominal and well worth it.
WHY DOES IT MATTER IF WE HAVE TITLE INSURANCE?
Even though title insurance is meant to cover any defects that may arise. It is still very important to perform a title search. It may reveal serious defects to title that may cause for your clients to decide they don’t want the hassle associated with the property. Serious defects may also jeopardize title insurance. In these instances its not that the title insurance won’t cover the defect its that it could stall the process of submitting a claim.
IS THERE A REAL ESTATE LAWYER NEAR ME?
If you are buying a home or selling contact our office to speak with a real estate lawyer in Burlington.
I provide legal services in Burlington, Milton, Hamilton and Oakville.
My address is 901 Guelph Line, Burlington.
You can also call or text at 416-505-4901
REAL ESTATE LAW. DO THE MATH!
DO THE MATH BEFORE YOU PURCHASE YOUR HOME
As a real estate lawyer I am surprised at how many people will attend at my office with no clue about any of the numbers involved in their transaction.
You don’t have to be a mathematics whiz but, its very important that you have crunched some of the basic numbers to ensure you have enough money.
This avoids us having to spend two hours simply going through the math.
HOW MUCH MONEY WILL I NEED FOR MY HOME CLOSING
Consider some of the following tips when you are purchasing your home and or have put in a final offer.
LAND TRANSFER TAX
How much will your land transfer tax be? There are free handy on-line calculators. Simply insert your purchase price and the Land Transfer Tax will be provided. You don’t want to be in a situation where you didn’t budget for a $20,000 Land Transfer Tax fee and find yourself short close to the day of closing.
DEPOSIT
How much money did you put down for the home? Generally, real estate lawyers during the closing process will create a document entitled Statement of Adjustments. This is prepared by the seller’s lawyer.
If I am acting for the purchaser I will have my client review the Statement of Adjustments. Essentially, the Statement of Adjustments takes the purchase price and deducts the value of the deposit provided. It also, identifies how much property tax the sellers have paid and how much is remaining.
The Statement of Adjustments will identify a final number that is to be provided to the seller’s lawyers on closing. Is important for clients to have a ball park figure. So there are no surprises.
TITLE INSURANCE
Unfortunately, real estate lawyers don’t always know the cost of title insurance until it is purchased. In some cases, the title insurance being purchased may not only be on behalf of the client but also the financial lending institution. Title Insurance is also contingent on the purchase price and the size of the property. For example, title insurance is cheaper is for a condominium versus a home.
HOME INSURANCE
Factor into your cost home insurance. Also, you will be required to provide a copy of the valid home insurance that is satisfactory for your lender. Remember home insurance is not the same as title insurance.
It is the clients responsibility to obtain home insurance the real estate lawyers responsibility to obtain title insurance.
BROKER AND OR BANK FEES
If you are using a private broker they may have their own fee structure. A prudent broker will typically have some type of signed agreement with the client. Ensure you factor this fee into your final numbers.
If it’s a bank, often they will include or deduct their own processing fees for forwarding mortgage funds. Make sure you check with either your broker or bank to determine how much will be forwarded to the lawyer on the day of closing!
If you have any other questions about the real estate closing process feel free to give me a call.
IS THERE A REAL ESTATE LAWYER NEAR ME?
If you are buying a home or selling contact our office to speak with a real estate lawyer in Burlington.
I provide legal services in Burlington, Milton, Hamilton and Oakville.
My address is 901 Guelph Line, Burlington.
You can also call or text at 416-505-4901 OR call Toll Free: 1 (800) 939-9211
How to hire a realtor
BURLINGTON REAL ESTATE NEWS
TOP THINGS TO CONSIDER WHEN HIRING A REALTOR
As the real estate lawyer my job is ensure your closing is successful and that the property being given to you is as promised in the agreement of purchase and sale.
However, during the closing process many roadblocks may arise. For that reason, its important that you hire the right real estate agent.
ENSURE YOUR REALTOR IS EXPERIENCED
Do your homework. How many years as your realtor been around. Ask them questions about the closing process. Specifically, ask them questions about the agreement of purchase and sale. A knowledgeable realtor will be able to answer these questions. Is this their first closing? Are they a part-time realtor?
ENSURE YOUR REALTOR IS FAMILIAR WITH THE AREA
It’s best to select a realtor who has lived or worked in the area you are purchasing or selling. Local realtors will be able to provide insight into many issues that others may not. It’s not just important that your real estate agent is familiar with the real estate market but also many other issues. Consider the following:
- Will there be more new housing developments;
- Are there grocery stories nearby;
- Is the highway easily accessible;
- Are schools nearby;
On many occasions amenities listed on an MLS listing are deficient. It’s great when your realtor knows about the community, local coffee shops, events, construction and the population in the neighbourhood.
HIRE A FULL TIME REALTOR
No, disrespect to part-time realtors. However, generally if the realtor is part-time this isn’t their full-time job. A realtor who works full-time will be in a better position to attend to your needs and concerns versus a part-time realtor. Moreover, a full-time realtor will likely have more experience and knowledge. Issues can come up during the negotiation, finalization and closing process. You as the customer shouldn’t have to wait for your realtor to call you back after 5PM.
IS YOUR REALTOR MEETING YOUR NEEDS?
Many realtors may rush clients into purchasing. They may encumber clients with tight closing conditions. The biggest being financing. Many may end up providing only a short window for the purchaser to ensure they are approved for financing. The realtor may suggest this is necessary given the competition. Despite, this you must ensure that you feel comfortable.
IS YOUR REALTOR BEING HONEST
Finally, the most important aspect in my view. Ensure your realtor is being genuine. Are they providing you with honest feedback? Is their advice, recommendation and suggestions based on a legitimate assessment of the market and trends.
Are they working for you? Are they too busy? Are they pushing for you to use a specific lawyer?
I am a real estate lawyer in Burlington.
IS THERE A REAL ESTATE LAWYER NEAR ME?
If you are buying a home or selling contact our office to speak with a real estate lawyer in Burlington.
I provide legal services in Burlington, Milton, Hamilton and Oakville.
My address is 901 Guelph Line, Burlington.
You can also call or text at 416-505-4901 OR call Toll Free: 1 (800) 939-9211
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Tips for your home closing date
PURCHASING A HOME?
CONSIDER THE FOLLOWING TIPS FOR YOUR CLOSING DATE
Whether its their first home or not as a real estate lawyer I love handing the keys to people for their new property. It’s a great feeling of excitement for the client and even me!
When deciding on a closing date for the purchase of a home you should consider the following:
NOT TOO FAR AND NOT TO CLOSE
Absent, any issues of urgency you should ensure your closing date isn’t many months away from when you signed the agreement of purchase and sale. These days with the costs of homes dropping due to a volatile market people are even finding that their home’s value dropped from when they first moved in. Also, many months in between may cause for some buyers or even the sellers to consider backing out.
Even more important, ensure your closing date isn’t very soon after you signed the agreement. You need time to ensure you will be able to arrange financing. You will need time to retain a home inspector. Your real estate lawyer will also require time. Finally, you will have a great deal to do, so give yourself the breathing room.
PICK A SUITABLE MONTH
This is discretionary but its good to pick a month where the weather is stable. For example, it’s hard moving boxes, trucks and driving in the middle of January due to the weather. Not to mention its just not fun. Realtors and real estate lawyers generally experience their busy months in the spring leading up to the fall.
Also, try not to pick a month where there may be extended Holidays. For example, home closings on or around or after the Christmas season can at times become problematic as many people are away on vacation.
Also, depending on how far you may have to travel to your new place you may want to factor in what day of the month is best. For example, do you really want to be sitting in traffic during rush hour traffic trying to make it to the lawyer’s office to pick up your keys to the new home?
MONEY
Ensure your closing date for your purchase factors into account all the money you may require. You will have already provided a deposit. Now don’t forget there will be Land Transfer Tax and legal fees. There are also additional factors that could arise. For example, some lenders may require that you pay down certain debt prior to providing you funding. Other lenders may stall funding until you finalize certain conditions.
I am a real estate lawyer in Burlington if you have any questions or concerns feel free to contact me.
IS THERE A REAL ESTATE LAWYER NEAR ME?
If you are buying a home or selling contact our office to speak with a real estate lawyer in Burlington.
I provide legal services in Burlington, Milton, Hamilton and Oakville.
My address is 901 Guelph Line, Burlington.
You can also call or text at 416-505-4901 OR call Toll Free: 1 (800) 939-9211
BURLINGTON REAL ESTATE TRENDS
BURLINGTON REAL ESTATE TRENDS
My previous summary of the Burlington Real Estate market can be found here Burlington Real Estate Trends.
In that post I remained optimistic. I still remain optimistic despite this February 2018 article in the Globe entitled, January real estate numbers in Hamilton, Burlington feel the chill.
The article reported as follows:
660 sales were processed through the RAHB Multiple Listing Service® (MLS®) System in January, 27.2 per cent fewer than the same month last year and 12.5 per cent lower than the 10-year average for the month.
Similarly, the Realtors Association of Burlington and Hamilton reported for the month of February 2018:
“February’s real estate market experienced a significant slowdown, and that’s compared not just to last year, but to the last 10 to 15 years as well,”
As a real estate lawyer in Burlington and Oakville I can say I have seen a dip in the number of people buying and selling. However, with Spring approaching I continue to remain optimistic.
If you have any other questions about the real estate closing process feel free to give me a call.
IS THERE A REAL ESTATE LAWYER NEAR ME?
If you are buying a home or selling contact our office to speak with a real estate lawyer in Burlington.
I provide legal services in Burlington, Milton, Hamilton and Oakville.
My address is 901 Guelph Line, Burlington.
You can also call or text at 416-505-4901 OR call Toll Free: 1 (800) 939-9211
Bad On-Line Reviews
SOMEONE LEFT A BAD ON-LINE REVIEW ABOUT ME
People are quick to jump to social media to start trashing a business or service provider. My own business clients will frequently call me and complain that some random customer has left a defamatory and salacious comment in their customer feedback section and now they want to sue that individual.
In the alternative, some clients will mention how they will use on-line tools to vent their frustration towards a particular business owner.
Typically, in my opinion its never worth it to pursue either. Recently, a very interesting case was discussed in the Toronto Star where a wedding photographer was awarded $100,000 against a former customer who left very negative and defamatory on-line comments. I suspect there will be more cases like this in the future.
This case should serve as a cautionary tale. Customers who feel they have been wronged should be very careful about what they write on-line. Moreover, they should be prepared to back up their comments and any potential civil action that may arise therein.
For business owners they should be aware that customers will use social media to criticize their business. This doesn’t mean the business owner should always be trembling in fear. A business owner should gauge whether the comments are actually harming their business reputation. More importantly for business owners who offer on-line public customer feedback, they should be prepared that some may decide to abuse the process.
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Call me I am a lawyer in Burlington servicing Oakville as well.
BURLINGTON REAL ESTATE TRENDS
BURLINGTON REAL ESTATE
You may have heard that the real estate market has not been doing as well for the year 2017. As a real estate lawyer we are also quite aware of any changing trends in the housing market.
According to the website Zolo it seems for the start of 2018 the average price of a home being sold in Burlington was $736.000 and that prices in 2018 seem to be bouncing back from 2017. A 4 bed room detached home three months ago was selling at an average of $987.000 however as of February 2018 was averaging at $1.1 million.
The cost of townhomes have remained largely the same with a 4 bedroom townhome averaging at $585,000 three months ago and as of February 2018 averaging at $568,000.
Within the 28 days preceding February 5, 2018, 349 homes were listed and 101 homes were sold and they were on the market for an average of 39 days. Its no surprise that homes that were under a million seemed to have been on the market less than homes over a million.
The trends above demonstrate that the housing market is not in some type of dire bleak state. If anything it shows a slight differentiation from 2017 but seems to be bouncing back. While its true that there are tighter rules for obtaining a mortgage, I continue to see people buying and selling on a regular basis with ease. I firmly believe this trend will continue and that we can hope to see at least some steadiness for 2018. The best indicator will be the spring of 2018 when people will likely start to decide on buying and selling as the weather gets better.
Burlington and Halton region in general continues to enjoy an influx of new residents. Given the high marks Burlington and Halton region continue to receive for livability and raising a family its no surprise that people continue to select Halton as a their first choice for settlement. These new residents are continuing to keep the local housing market buoyant.
The statistical information cited in this blog post was obtained at https://www.zolo.ca/burlington-real-estate/trends
IS THERE A REAL ESTATE LAWYER NEAR ME?
If you are buying a home or selling contact our office to speak with a real estate lawyer in Burlington.
I provide legal services in Burlington, Milton, Hamilton and Oakville.
My address is 901 Guelph Line, Burlington.
You can also call or text at 416-505-4901 OR call Toll Free: 1 (800) 939-9211