The Role of

Real Estate Lawyers in Mortgage Transactions

It goes without saying that the purchase of a home is the largest single investment that you’ll make in your lifetime. When you’re making this kind of life-changing decision, getting expert legal advice from the Makaronets Real Estate Law Firm is always a good idea. In addition to hiring the services of a real estate agent or broker before you purchase or sell a home, most prospective buyers will also request an appraisal and a home inspection prior to making their decision. So it makes sense to seek the expert advice of an experienced real estate lawyer.

What do Real Estate Lawyers do?

Real estate lawyers specialize in a broad range of mortgage transactions as well as other facets of the home buying and selling process, especially where legal issues are involved. In fact, if you don’t retain a real estate lawyer in Ontario Province, you won’t be able to buy a home and register the property. At the Makaronets Real Estate Law Firm, we handle everything from preparing and review important documents to the actual closing of the transaction.
Buyers and sellers usually have their real estate lawyers present during mortgage transactions. Depending on the side of the transaction they’re on, their responsibilities and roles typically differ. The following chart explains how:
When Buying a Home, RE Lawyers:
  • Arrange for title insurance
  • Check for liens and other legal issues
  • Facilitates the closing
  • Reviews the purchase agreement and other related documents
When Selling a Home, RE Lawyers:
  • Assists with negotiations
  • Facilitates the closing
  • Handles and resolves any legal issues
  • Prepares and/or reviews the purchase agreement and other documents

In Canada, real estate law is a Provincial and Regional matter. Consequently, real estate lawyers play an important role for both buyers and sellers by ensuring that both parties’ best interests are represented throughout a mortgage transaction, including:

  • Making arrangements for specific services (e.g., title insurance)
  • Making sure that the property deal is fair
  • Making sure that you’re purchasing what you thought you’d be purchasing

In addition to the above, the Makaronets Real Estate Law Firm can provide legal representation for either party in mortgage transactions should a legal dispute arise and end up in court. Our lawyers will obtain facts from both parties in the dispute in order to resolve the issue so that everyone involved is satisfied with the outcome.

What is and isn’t covered by the Legal Fees?

Although legal fees typically cover the lawyer’s time, some law firms may incorporate other costs such as faxing documents, photocopies, postage, and so on. Sales tax also applies where legal services are involved. In Ontario, an HST (Harmonized Sales Tax) of 13% will be charged on legal fees. On the other hand, legal fees don’t cover those costs that the lawyer pays out of pocket to complete the transaction such as:

  • Application fees
  • Land transfer taxes
  • Registration fees
  • Title insurance premiums
  • Title search fees

These costs are commonly referred to as disbursements, which your real estate lawyer pays on your behalf. So you’ll need to reimburse them for said costs.

When do You need to call the Makaronets Real Estate Law Firm?

There are several are certain areas of a mortgage transaction in which our legal team should be involved from dealing with a uniquely complex transaction to reviewing the purchase contract itself. While our lawyers usually play a role in preparing the purchase contract, we can also review the terms of the purchase contract. Due to limitations, real estate agents will fill out purchase contract templates and not draft them from scratch.

This is why a real estate lawyer should handle drafting and preparing those contracts that are more complex or complicated. If you’re planning on hiring one of our lawyers at this stage of your mortgage transaction, please allow us a few days to review the contract before finalizing it. To learn more, contact the Makaronets Real Estate Law Firm today.