The simple answer is yes. You need a Lawyer For a Real Estate Sale in Edmonton. Financial institutes require a lawyer to handle your properties mortgage registration or removal from the Land Title. Real Estate is one of, the largest investment you’ll ever make. Because of this, it only makes sense to have all documentation completed with a lawyer to ensure all details are legally binding. In this article, we will take a closer look at why you need to use a lawyer when buying or selling real estate. Then, dig deeper into what to expect from a real estate lawyer in Edmonton, including their duties and real estate lawyer fees. For additional real estate advice visit my website home page or call me!
Do I Need A Lawyer To Sell Property In Edmonton If I Have A REALTOR®?
The short answer is yes. This is why: Your REALTORS® job is to sell your home by marketing the property to find a buyer. Once you have a serious buyer, your REALTOR® works with you and the buyers REALTOR® to negotiate a deal and solidify a contractual agreement that outlines the conditions, terms, possession date, price etc. You and your REALTOR® work to satisfy the conditions of the contract until the Buyers waive their conditions.
This is when your lawyer enters the picture. The lawyers handle conveyancing between the buyer and sellers banks. The registration processes with Alberta Land Titles, and ensure that the terms of the contract are met. Your lawyer is responsible for, the money transfer, and changes to the land title on possession day.
What Does The Real Estate Lawyer Do For The Seller At Closing In Edmonton?
There are many tasks that a real estate lawyer must execute. They include:
1 – Ensure all contract terms have been met.
2 – Ensure money has been transferred from buyer to seller.
3 – Ensure your mortgage is paid including all bank fees.
4 – Removal of all liens and other encumbrances from the Land Title.
5 – Disbursement of all commissions owed to REALTORS®.
6 – Ensure a compliant and current Real Property Report is provided to the buyer prior to closing.
What Does The Real Estate Lawyer Do For The Buyer At Closing In Edmonton?
The buyer also benefits from the services of a real estate lawyer. This is what the lawyer does for the buyer:
1- Ensure all contract terms have been met
2 –Secure the buyer’s down payment, and mortgage funds, plus any closing costs
3 – Ensure your mortgage is properly registered on with Land Titles
4 – Remove any liens, debts, or other encumbrances from the title prior to possession.
5 – Ensure there is a current and compliant Real Property Report
6 – Apply for any encroachment agreements if needed.
Edmonton Lawyers and Real Property Reports (RPR)
A survey company creates the Real Property Report and the City of Edmonton verifies it’s compliance. A Real Property Report is a document that essentially identifies and shows the outline of your property and the size and location of each of the structures on that piece of land. Think of it as a map of your property and what it contains. Check out this post on how to order an RPR.
All Edmonton real estate agents use the same AREA contract. Buyers and Sellers must observe Section 10.2 of this contract. Section 10.2 states that a current and compliant RPR (Real Property Report) must be available for the buyer prior to closing. The City will mark the report as compliant if it complies with properties zoning regulations.
What Happens If the Seller does not have a Current and Compliant RPR?
During the purchasing process, the Buyer’s lawyer will ask if a compliant RPR is available. The seller’s REALTOR® should have one ready on behalf of their client. If an RPR is not available the Sellers lawyer must prepare one. If you are buying or selling a property with Title Insurance in lieu of an RPR, your lawyer does not have to prepare a Current or Complaint RPR.
Title insurance is an easy trick to save on money if you do not have a Real Property Report. Ask your REALTOR® about Title insurance, or take a look at my posts on Real Property Reports.
Real Estate Lawyers Enforce The Terms and Conditions of Your Real Estate Sale
Your Lawyer has an obligation to ensure your home sale complies with the terms and conditions of the purchase contract. These are some common terms your lawyer may enforce:
- That vacant possession is provided.
- All unattached goods sold with the house, remain on possession day.
- Paid invoices are in hand for work the seller did before possession.
If terms in your contract have not been satisfied your lawyer can withhold money from the sellers, until those terms have been met. A good example is when the sellers promise a professional cleaning before closing.
Is There A Difference Between A Real Estate Lawyer and A Normal Lawyer?
If you have asked the question, can I sell my property with any lawyer? The short answer is yes. Selling Edmonton property is possible with a lawyer, but you would be wise to retain a real estate lawyer rather than a normal lawyer. The reason for this is that a real estate lawyer specializes in real estate law from transactions to disputes. This does not mean that a normal lawyer cannot do the same job, only real estate lawyers practice property law exclusively.
Another benefit of using a real estate lawyer, is their price. Real Estate lawyers have efficient methods in place to deal with residential property transactions. A Normal lawyer may charge an hourly rate, but a real estate lawyer will propose a flat fee for your transaction.
What Are Closing Costs When Selling My Real Estate In Edmonton?
Closing costs differ for both the seller and buyer.
Closing Costs for Home SELLERS
The actual dollar amount varies, but sellers must cover the cost of Property Tax up to the possession date, condo fees if they apply, standard legal fees, and REALTOR® fees.
Closing Costs for Home BUYERS
Closing costs for a buyer are the expenses that remain above the purchase price of the new home. This includes the balance of the purchase price minus the mortgage amount and any pre-paid deposits. There will be legal fees, CMHC fees if applicable, tax adjustments, insurance, property inspection fees, appraisal fees, deposit fees for utilities, and other outstanding fees. The costs will vary but will likely range between $2,000 and $2,500.
What are Normal Real Estate Lawyer Fees In Edmonton?
Real Estate legal fees vary from deal to deal. Lawyer fees are differ for sellers and buyers. Buyers normally pay more for their lawyer, as their duties coordinating the new mortgage are greater.
A real estate buyer should expect between $700 to $800 in fees (before disbursements).
A real estate seller should expect between $575 to $700 in fees (before disbursements).
This is a breakdown of the tasks you pay your lawyer to perform.
- Collecting mortgage instructions from the bank/lender.
- Preparing new mortgage documents.
- Preparing Title Insurance (if needed).
- Coordinate Surveyor and City of Edmonton for Real Property Report (if needed).
- Collect the buyers required equity for closing (minus the initial deposit).
- Mortgage document signing.
- Request mortgage funds be available for the closing date.
- Send the seller’s lawyer the funds collected on possession date.
- Register the new mortgage on Title .
- Create a statement outlining all adjustments made.
- Provide the final land title showing new owners name and mortgage registration.
As extensive a list as this is, total legal fees in Edmonton should not cost more than $800 before disbursements. Disbursements are sums of money paid to the bank, land titles registration office, etc.. The lawyer pays these fees on your behalf.
Hiring a Real Estate Lawyer
Call a Lawyer of your choice once your home Is unconditionally sold
Tell your Real Estate Agent who you are using as a Lawyer
Meet your lawyer prior to closing to sign formal closing documents
So, do you really need a Real Estate Lawyer to sell your house?
Yes, you most certainly do! The best way to do this is with an Edmonton real estate lawyer who specializes in property law. That way, you know your real estate interests are at the top of their mind and that all documents and details are handled professionally, without any surprise fees or bills.
