Real Estate
Real Estate transactions often involve avoidable pitfalls
For most, purchasing a family home is one of the most significant financial decisions. During the course of a real estate transaction, issues can arise that end up being costly for the buyer, the seller, or both. The pitfalls are not always obvious, but our team is able to guide you through the nuances of your real estate transaction.
Our services
Commercial and residential real estate transactions
Transfers of land and title (including dower considerations)
Due diligence investigations
Title registration
Help in navigating the ins and outs of property and title insurance policies and mortgages
Review of relevant purchase & sale agreements and any ancillary documents, such as condo documents and estoppel certificates
Signing a Purchase Agreement before lawyer reviews
It is important to have your lawyer review your Purchase Agreement prior to signing to ensure that appropriate conditions are added or removed to protect you. Presenting your lawyer with a fully signed purchase agreement means that you have entered a binding contract, and that you have already agreed to everything in that signed agreement leaving your lawyer with no way to ensure that you are protected.
The Real Property Report is old
What is it? A real property report is a legal document prepared by an Alberta Land Surveyor that details the boundaries of a property, and buildings and structures on the property including fences, sheds, and decks.
Why is it important? Structure on the property including fences, sheds and decks must comply with municipal bylaws. A buyer needs to know what they are buying, and a recent real property report is important because it details what is being purchased. An updated real property report can save a purchaser potentially thousands of dollars in rectifying problems if there are noncompliance issues.
Waiver of Property Inspection
Sellers are required to disclose deficiencies with the property they are selling. Sometimes purchasers will waive the condition of a property inspection. However, purchasers should request a property inspection as a property inspection can reveal undisclosed problems or issues not known to the seller.
Before signing on the dotted line to buy your condo, a lawyer should review estoppel certificate and condo documents
Before you sign on the dotted line, you should have a lawyer review the estoppel certificate and condo documents. An estoppel certificate tells whether condo fees are owing. Your lawyer should also review a reserve fund study or audit. A reserve fund is the common fund that a condo corporation manages, and is the fund that condo corporations use for maintenance of your condo’s common areas. What if the condo you are purchasing needs a new roof? You do not want to buy your condo, then receive a special levy of thousands of dollars because the reserve fund does not have sufficient money.
Some things you should know
Be careful about signing a purchase & sale agreement before reviewing it with a lawyer.
Once you sign a standard form purchase & sale agreement, you are contractually bound, for better or worse. It is important to have your lawyer review the agreement with you before signing it. This allows your lawyer to ensure that the appropriate terms are in the agreement in order to protect your interests. Once the agreement is signed, there is comparatively little that can be done to change things.
An up-to-date real property report is essential.
A real property report is a legal document prepared by an Alberta Land Surveyor that details the boundaries of a property as well as the buildings and structures on that property – including fences, sheds, and decks. These must comply with municipal bylaws. An up-to-date real property report can save a purchaser significant expenditures, to say nothing of the headaches involved.
A property inspection could reveal problems or issues not known to the seller.
Sellers of real estate are required to disclose any known deficiencies with the property subject to sale. Sometimes, purchasers will waive a property inspection as part of the transaction. This could result in problems down the line; purchasers should always request a property inspection, as it can reveal undisclosed problems or issues not known to the seller.
A lawyer should review any condo documents before signing.
There are specific documents that need to be reviewed by a lawyer before purchasing a condo, such as the estoppel certificate and the reserve fund study/audit. An estoppel certificate indicates whether condo fees are owing on the property. A reserve fund study/audit refers to the fund that a condo corporation manages and that is used to pay for the maintenance of your condo’s common areas. If the reserve fund is inadequate, you could be liable for any deficiencies.
Insurance is another area of potential pitfalls.
It is always prudent to have a lawyer walk you through the relevant insurance considerations. For instance, in a real estate transaction, the seller will have fire insurance up until the day the buyer takes possession. Additionally, lenders increasingly require title insurance; your lawyer can explain the nuances of policy terms.
There are additional title considerations when purchasing property jointly.
If you are purchasing property jointly, you and your partner can have the title registered either as tenants-in-common or as joint-tenants. Each has different legal implications; an experienced real estate lawyer can help make sense of these.