Closing Real Estate Lawyers advises Buyer-Sellers – precautions to avoid issues and ensure a smooth closing.

It is unfortunate, but it does happen on rare occasions when the closing of a real estate …

That a buyer pulls up to their newly purchased home and the seller has not cleared out of the home!  And worst of all, it is obvious that it will be a few hours before the seller completely vacates the home. Even the best closing real estate lawyers can’t anticipate this issue occurring when closing a deal.

Neither the buyer’s lawyer nor the seller’s lawyer goes to visit the property, so there is no way for either lawyer to visually assess the likelihood that delivery of vacant possession will be delayed.  When this happens, the buyer is inconvenienced and frustrated and often out of pocket because the movers are waiting to move furniture into the home.

For our buyer clients, we advise them to arrange a visit the day before closing to assess how much or how little has been packed and/or removed by the sellers.  This visual observation is usually a good indicator of whether vacant possession will be delayed.  We also ask our clients to report any concerns to us and their realtor so that communication can be sent to the seller’s lawyer and realtor to address the issue with their respective clients.

Real estate Lawyer Cautions on the day of closing

And, if a buyer wants to be extra careful, there is no harm in driving by the morning of closing to have an outside visual of the property and determine whether things are being moved or whether it appears the home has already been vacated or whether any debris has been left about the property.  After all, the goal is to avoid any issue BEFORE money is paid over to the seller’s lawyer.

Closing Real Estate Lawyers advise…

At our firm, we always ask our seller clients “when do they expect to be completely out of the property”.  This is particularly important where the parties are selling because of a separation and one has remained in the home.  Regardless of why people are selling, we aim to avoid any misunderstandings on the part of our clients.

Our advice is to be out no later than 1pm but preferably by 11am the day of closing.  This is what we tell our clients to ensure there are no surprises that create animosity and discontent between the sellers and the buyers; and of course, potential litigation.

We also advise our clients to ensure they leave their home in a broom-swept condition free of any debris, such as old furniture, unwanted lawn furniture, and other things a seller may presume buyers would appreciate having.  This approach has always worked well for our clients.

At GGS, we are proactive in trying to avoid problems and ensure a smooth and happy real estate closing.

Article written by Karmel Sakran

Readers may contact Karmel Sakran at 905-639-1222 ext. 224

Home Buyer-Seller real estate closing – Talk to a Real Estate Lawyer »

Burlington, Hamilton, Milton, Mississauga, Guelph

Real estate is a regulated profession in Ontario. Salespersons and brokers must register with the Real Estate Council of Ontario (RECO).

Mortgage: Selling or Refinancing your home tips from a Real Estate Lawyer

When you sell your home or refinance, a bank will send a payout statement to the real estate lawyer handling your matter that sets out the total amount owing to be paid to remove the mortgage off title to your home. Of course, a buyer or new lender will require you to remove the mortgage registration off title. Almost all lenders add interest, pre-payment penalties, fees and disbursements to the principal amount owing on your mortgage. A Real Estate Lawyer can help you navigate your home mortgage.

One line item on your payout statement will be an “administrative fee” – usually $250 to $350. First-tier lenders, like BMO, RBC TD Canada Trust, Scotiabank, CIBC will refund this amount to you. Here’s how. “After” the refinancing or payout occurs, you go into your local branch and speak to someone in authority that you know, like the bank manager. If you have a good rapport and good history with your bank, then they may very well refund the funds back into your account. Don’t try this “before” the payout occurs because the bank wants to make sure that you have paid all that they have demanded first before refunding any amount to you. The administrative fee is included by “head office” of the bank because they are required to do so. They don’t know you. Only your local branch knows you and they have the discretion to refund the amount to you.

Mortgage Real Estate penalties

This can also, in some limited cases work for any pre-payment penalty charged to you. In some instances, and this is typically when your relationship with the bank is substantial, the local branch may refund some or waive your entire pre-payment penalty. Of course, if you are financing with your bank, speak to them upfront about waiving or refunding the pre-payment penalty. Again, head office will include the pre-payment penalty and after refinancing, your local branch will then honour their commitment to refund the amount to you.

Comments from Mortgage Real Estate Lawyer

In my experience, second-tier lenders, like MCAP, Streetcapital, FCT, will not consider such requests.

Sellling, Buying, or refinancing your home through a mortgage?

Speak with Karmel Sakran, Real Estate Lawyer »

Burlington, Hamilton, Milton, Mississauga, Guelph