What do I need to know when selling my property?

Rameh Law > What do I need to know when selling my property?

What do I need to know when selling my property?

Selling your property, we understand, is a huge decision. Whether you’ve done it before or doing it for the first time, the process can be complicated. Property selling calls for an attorney’s involvements to help protect your investment.

A lawyer will help oversee the property sale from signing the contract through the negotiating stage to closing. Your legal representative will review the sales contract, explain terms in a professional but easy-to-understand manner, and be there at closing to avoid any mishaps.

A lawyer’s presence is mandatory during home selling in some provinces. However, even if the law doesn’t require a lawyer’s presence while selling property, having one on your side is always a good idea.

Our experienced and skilled real estate lawyers will guide you through the complex home selling process.

What will your lawyer do when selling a property?

The value that an attorney brings to your real estate transaction includes:

Drafting and reviewing the sale contract: your lawyer will memorialize the deal’s terms into a formal, legally binding contract. They will ensure the contract contains certain provisions that protect your interests. They will also make sure the contract does not violate any federal and provincial laws.

Having a lawyer also ensures that certain issues that may arise later on are dealt with in time. Such issues may include:

  • Handling existing renters, if any
  • Putting the property to certain uses in future
  • Purchase of a leaseback

Property selling often involves the manifestation of many documents in the course of the process. Your lawyer will help review the documents. Without a lawyer, you will likely take the lender’s word for what is contained in the documents.

Even if you take your time to go through the documents, you’re not likely to identify troubling legal issues or wording that may be contained in the documents.

Handling liens-related issues: if the property has outstanding liens, your lawyer will help maneuver through such matters and clear the way to closing. They will get in touch with the title company and ensure any lienholder gets what is due to them to avoid future issues.

Property transfer: an attorney can help draw up title deeds to help effectuate the property’s change of ownership. Moreover, the legal representative will review title agreements related to transactions that involved parties such as trusts, partnerships, and limited liability companies to avoid the breach of the terms of the charter agreement.

Without good legal guidance, you’re likely to attract lawsuits in the event of a breach of the agreement.

Maneuvering through other legal requirements: Selling certain “special” properties may involve additional legal steps and considerations. For instance, if you sell what the government considers a historic property, there may be some special considerations and requirements to meet before the government allows you to close the deal. A lawyer can help you know what to do.

Besides, if the buyer intends to use the property for commercial purposes, a lawyer may help both you and the buyer understand the local government is zoning restrictions that may apply. This will help avoid future wrangles with the buyer.

Short sale: Since your lender lets you sell your property for less than the money you owe, the maybe hurdles to jump through on your way to selling it. A lawyer will help you navigate the complexities of short selling.

 Recording: Canadian real estate transactions are full of cases where people are selling properties whose deeds were never recorded at the point of purchase. It can create a legal quagmire for both sellers and buyers.

If you are looking to sell a property with such issues, a lawyer will help you first get its full legal ownership to make it seamless for you to dispose of it. Without a proper recording of the deed, the buyer will not acquire any legal interests in the property.

Drafting amendments: circumstances may change before closing. For example, it might take longer than normal to process certain stages of the deal. Moreover, there may be a need for changes to the initial agreement after inspection of the house to factor in any existing defects.

In addition to disasters, for example, floods, fire, and a tornado might strike. An attorney can draft an amendment to keep the sale agreement intact, but at the same time factoring in new circumstances.

 Joint sell: the property you are selling may be under joint ownership. If you are disposing of a property with a party other than a spouse, a lawyer will work to ensure both your interests are protected. They will prioritize your interests in the deal, bearing in mind that the buyer will also have a lawyer fighting to ensure their clients’ interests are guaranteed in the transaction.

Estate sale: if the property you are selling is inherited, retaining a lawyer to help navigate ownership documents can come in handy. It is beneficial where other family members are also claiming ownership of the property.

Avoid using the buyer’s agent or lawyer.

It’s important to retain a real estate lawyer when selling a property because the buyer will likely have their own legal representative or agent. These people will be working to protect their client’s interests.

The buyer’s lawyer may pressure you to allow them to represent both parties in what is called a dual agency relationship. Such a relationship will solely benefit the buyer. If you’re lucky to meet a buyer’s agent that is less scrupulous, they are unlikely, however, to make it clear that they represent both parties.

Nevertheless, if there is only one lawyer involved, you can, as well as, just assume that their loyalty is with a buyer. It’s best to have your own representative. As some experts advise, if there is no other viable alternative, it’s better to have no agent or lawyer at all than agree to the proposed dual agency if the law allows.

Selling a commercial property or a home is a big financial decision. If you’re working with a skilled real estate lawyer, you will rest assured that everything will be handled with adherence to the law and professionally.

A reputable lawyer understands local regulations and laws and will give you a heads up with regards to any unique qualities that the property might have that could potentially complicate the transaction. Get in touch with us today if you’re looking to sell your property.