Answer: A lawyer reviews your Agreement of Purchase and Sale, Status Certificate (for condominiums) and provides advice on these documents.
In addition, the lawyer can advice you on the ultimate price you would have to pay including all closing costs such as: land transfer tax, document registration fees, search fees, legal fees and adjustments to purchase price that you will thave to pay the vendor such as pre-paid utilities.
The buyer’s lawyer will complete a series of legal inquiries such as searching title for encumbrances, searching the owner’s name for executions in order to ensure that the seller has the right to sell the home and provide a good title and that the property’s present use is in legal conformance to all legislations.
In order to ensure that you are acquiring good title of the property, your lawyer will do an extensive background check on the sellers of the property, search the title of the property to ensure that the property has good marketable title, consider survey related issues such as whether there are any property enroachments on neigbouring properties, contact the municipality to ensure there are no work orders against the property, whether there are any easements that allow organizations/corporations to access or install additions to your property and determine whether there are any unpaid utilities or tax bills that must be corrected. Your lawyer will take steps to ensure that you are getting a good and marketable title and to correct any problems.
In addition, your lawyer will prepare and check mortgage documents, prepare and check registration documents, check the statement of adjustments , advise a buyer on the different ways of owning property, advise a buyer on title insurance and any other concerns you may have with purchasing or selling your home. Your lawyer will explain and sign various documents to effect the transfer of property closer to the closing date.
As the closing date draws near, the vendor’s lawyer will cause to deliver the keys to the home to the buyer’s lawyer. The buyer’s lawyer will register the transfer of property and provide the keys to the buyer right after the home is properly registered.
As for the costs, The legal costs for a lawyer ranges depending on the lawyer. The range is approximately $499 to $800.00. Remember that this is just the “legal fees” and does not cover disbursements (amounts paid by the lawyer to a third party on your behalf). The ultimate price you pay to a lawyer including disbursements can range from $1,100 to $1,800 approximately.
Other closing costs include Land Transfer tax paid to the municipality of Toronto or the Province of Ontario, Title Insurance paid to an insurance company and pre-paid utilities.