April 06, 2022 | CREB
SPONSORED: What every Alberta homebuyer needs to know
Buying a home is likely one of the most significant and costly purchases that individuals will make in their lifetime. Therefore, always ensure that the transaction is handled by reputable professionals.
Real estate lawyers offer a variety of services to assist REALTORS® and clients in buying a home. The real estate lawyers at Kahane Law Office can take care of the legal issues related to the purchase of a home. However, there are still real estate law basics one should know to make the transaction as stress-free as possible.
What Do Real Estate Lawyers Do?
Real estate lawyers do everything in their power to ensure that the transaction closes on time. Accordingly, we coordinate with all parties involved in the transaction. This includes real estate agents, mortgage specialists and the sellers’ lawyer. Specifically, when acting for the buyer, real estate lawyers:
- Prepare closing documents including transfers of land, tenancies at will, mortgages, and directions to pay.
- Meet with the client to sign closing documents.
- Negotiate amendments to trust conditions with the seller’s lawyer.
- Forward closing funds to the seller’s lawyer to secure release of keys.
- Forward commission fees to the REALTOR® as needed.
- Submit transfer documents to land titles for registration.
- Ensure good title to the home.
- Provide reports to you two to three months after the transaction closes.
Insurance For The New Home
If the buyer has a mortgage, the lender requires proof of insurance prior to funding the mortgage. Almost all lenders need full replacement coverage. Sellers also require insurance to grant tenancy at will. Delays in possession and interest payments often happen due to the failure to purchase the required insurance.
Who Pays for Property Taxes?
Depending on what time of the year a home is being purchased, and how often the seller paid their taxes to the municipality, the buyer’s ability to register for the City of Calgary’s Tax Installment Payment Plan (TIPP Program) may be impacted. Applying for the TIPP Program allows buyers to pay their property tax on a monthly basis instead of in one lump sum payment every June. Your real estate lawyer can advise on how frequently the seller was paying taxes on the property and the options available to the buyer.
Real Estate Law Basics For The Possession Day
For most cases, possession date is on completion day at noon. The property should be in substantially the same condition as it was when the contract was signed, unless the purchase contract was amended. Notably, under the contract, a used property is not expected to be in perfect condition, but the home should remain in the same condition as when the parties entered into the contract.
In the event of major damage to the property at the time of moving in, such as flooding or missing/broken appliances contrary to what was agreed to in the purchase contract, contact your real estate lawyer as soon as possible. Funds transfer to the seller’s lawyer on the closing day. Therefore, if you inform us of any issues even a day or more after closing, we will have no leverage to negotiate with the seller’s lawyer.
Help With Your Real Estate TransactionIf you are thinking of buying or selling a home, you should hire credible professionals to give you peace of mind that you will get good title. The experienced real estate lawyers at Kahane Law Office are happy to assist you with your real estate transaction. You can reach us toll-free at 1-877-225-8817, or 403-225-8810, or email us directly here.
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