The real estate closing process is the final step in a property transaction where ownership is officially transferred from the seller to the buyer. This involves signing various legal documents, transferring funds, and ensuring all conditions of the sale are met. A lawyer ensures that every detail is meticulously reviewed to avoid any future disputes.
Role of a Lawyer
In Ontario, having a lawyer for real estate closing is not just a good idea—it’s a legal requirement. Only a lawyer licensed with the Law Society of Ontario, can sign the actual transfer of title from sellers to the purchasers.
Real estate transactions involve numerous legal documents, including the deed, mortgage documents, and closing statements. Lawyers prepare and review these documents to ensure accuracy and compliance with the law. Lawyers conduct a thorough title search to ensure there are no liens, encumbrances, or legal issues with the property. They also arrange for title insurance to protect you against future claims. Lawyers manage the transfer of funds through a trust account, ensuring that all financial transactions are secure and properly documented. If any issues arise during the closing process, such as disputes over property boundaries or problems with the title, a lawyer can address and resolve these issues promptly.
Frauds in Real Estate
Identity theft in real estate transactions is on the rise, with fraudsters increasingly targeting property deals to exploit personal information and commit financial crimes. This type of fraud can involve criminals impersonating property owners or buyers, forging documents, or taking out fraudulent loans against properties. The consequences for victims can be severe, including financial loss, damage to credit scores, and lengthy legal battles to reclaim their property. Lawyers play a crucial role in preventing such frauds by conducting thorough identity verifications, performing detailed title searches, and ensuring all documents are authentic and legally binding. They also provide secure handling of funds through trust accounts and offer expert advice on safeguarding personal information throughout the transaction process. By involving a lawyer, buyers and sellers can significantly reduce the risk of falling victim to identity theft in real estate transactions.
Closing Costs
Closing costs in a real estate transaction in Ontario include several key expenses that buyers need to budget for. These costs encompass the land transfer tax, which is calculated based on the property’s purchase price and varies if the property is located in Toronto, where an additional municipal land transfer tax applies. Registration costs cover the fees for registering the deed and mortgage with the provincial government. Title insurance is another essential expense, protecting buyers and lenders against potential title defects or fraud. Legal fees for a real estate lawyer typically range from $999 to $2,400, depending on the complexity of the transaction. Additionally, there are disbursements, which are out-of-pocket expenses incurred by the lawyer on behalf of the client, such as title searches, registration fees, and courier charges. These combined costs can significantly impact the overall budget for purchasing a property, making it crucial for buyers to plan accordingly.
How we can help you?
AVOS Law provides comprehensive legal services to clients navigating various real estate transactions, ensuring a smooth and secure process. Whether it’s a sale, purchase, refinance, survivorship application, spousal buyout, estate transfer, assignment sale, or occupancy closing for pre-construction projects, AVOS Law’s experienced team offers expert guidance and meticulous attention to detail. They conduct thorough title searches, prepare and review all necessary documents, and manage the transfer of funds securely. Additionally, AVOS Law assists clients in understanding their legal rights and obligations, resolving any issues that arise, and ensuring compliance with all relevant laws and regulations. Their commitment to personalized service and legal excellence helps clients achieve their real estate goals with confidence and peace of mind.
Having a lawyer involved in the real estate closing process ensures that the transaction is completed smoothly, legally, and with minimal risk to you as the buyer or seller. If you are looking to engage in a real estate transaction, feel free to reach out to us for a free consultation and get a no-obligation quote for your real estate closing.
Abhinav Sharma is a Barrister and Solicitor in Ontario and the founder of AVOS Law Professional Corporation (AVOS Law). He is Real Estate Insured from Law Pro and can take on real estate transactions efficiently.