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Please note this article does not provide any legal advice.

You’ve found your dream home and are ready to proceed to closing and your realtor has asked you to find a real estate lawyer. You ask yourself, what does a real estate lawyer do? While it may seem like a simple exchange of keys, a real estate closing is a far more complex process that requires expert guidance. That’s where your real estate lawyer comes in. From reviewing contracts and conducting title searches to ensuring a smooth transfer of ownership, your lawyer plays a vital role in protecting your interests throughout the closing process. In this blog post, we'll understand the key role a real estate lawyer plays on closing day and why their expertise is indispensable. So, what exactly does a real estate lawyer do at closing? Let's find out.

Real Estate Attorneys

A real estate lawyer is a lawyer who is licensed to practise real estate law. They have expertise in dealing with the different real estate issues and legalities. They act as representatives and ensure your property transaction process runs smoothly.

Key Responsibilities of a Real Estate Lawyer

In general, a real estate lawyer's responsibilities vary based on the transaction they are involved in. But here are some key responsibilities they are likely to play in a standard transaction:

Review of the Agreement of Purchase and Sale

A real estate purchase and sale agreement is a legally binding contract that mentions all the contractual obligations related to the transaction between a buyer & seller. While the contract is typically prepared by real estate agents, a lawyer will review the documents related to the purchase agreement as well as documents with respect to the mortgage, title, and transfer. A real estate lawyer can ensure your contract is legally sound, protects your interests, and clearly mentions all the terms and conditions. A real estate lawyer can also help you identify potential risks and help you navigate the complex legal aspects of the property transaction. This can ultimately reduce the possibilities of future disputes or complications for both buyer and seller.

Key roles of a real estate attorney in closing a transaction:

• Legal Review
• Communication with Seller’s lawyer
• Title Search and Examination
• Removal of liens and mortgages held by the seller
• Explaining Complex Terms
• Preparation of all closing documents
• Review and Registration of Deed and Mortgage

Sometimes, unexpected issues may arise during the time you buy a property. A real estate attorney can help you at such times as they can easily identify issues and take counteractive action to carry out the process smoothly.

Pre-Closing Responsibilities

The pre-closing process in real estate involves various tasks that ensure all your legal requirements, financial arrangements, and documents are in proper order before the closing day. This process can include a various number of steps:

1. Communicating with your mortgage lender and satisfying their requirements
2. Working with you to ensure you are ready for closing
3. Ordering a title report
4. Assisting you in ordering home insurance.
5. Ordering title insurance
6. Preparing the deed or conveyance documents

Title Search

A title search is a review of public records that confirms the legal ownership of a property. Hire are a few things title search can help you identify:

• Property Ownership
• Any claims or liens against the property that could affect the purchase
• Any outstanding property taxes that need to be paid before the title can be transferred if registered as a lien

A lawyer plays a key role in a title search by verifying a property's title before a real estate transaction: Researching documents  Lawyers examine sale deeds, encumbrance certificates, transfer deeds, and other legal documents related to the property. Check for issues  They also look for disputes (registration of matrimonial home designation on title) that may impact your home or CRA Tax liens. By verifying there are no issues with the title, lawyers can safeguard their client's investment and prevent legal complications.

Closing the Transaction

A real estate lawyer plays a role akin to that of a quarterback in a football game. As the closing day arrives, the lawyer and his staff facilitate everything including exchanges with the seller of paperwork, satisfying the bank’s requirements and ensuring that the closing goes as smoothly as possible while looking out for their client’s interest. As a part of this, your lawyer will oversee the disbursement of funds to make sure things are done legally and in a timely manner. In case any dispute arises during the transaction, a lawyer can intervene to resolve it.

Do I need a real estate lawyer to handle my real estate closing?

In Ontario, it is mandatory that the buyer and seller hire their own independent real estate lawyers to close a transaction. VRS Law has been handling real estate purchase, sale and refinancing transactions for over 14 years and has conducted thousands of successful closings. If you are currently looking for a real estate lawyer for the closing process, VRS Law can help you. For any questions, email us at info@vrslaw.ca or call us at 519 224 3082.