BY: VLADO HAJTOL
This week’s Reader asks: I am selling my house, which I’ve owned for the last 15 years. When do I need to contact a lawyer and what is the legal process of the sale transaction?
You should contact a lawyer as soon as you accept an offer for purchase of your home to give your lawyer enough time to prepare the file and to deal with any issue that might arise.
Agreement of Purchase and Sale and Closing Documents
The lawyer will review the Agreement of Purchase and Sale and prepare all the closing documents. She will respond to any title issues raised by purchaser’s lawyer, such as old undischarged mortgages.
Statement of Adjustments, Real Estate Commission, Mortgage, Realty Taxes, Utilities.
Your lawyer would prepare a statement of adjustments showing the final amount that the purchaser is required to pay on closing. In addition to the purchase price, this amount also includes adjustments for realty taxes and any prepaid utility charges.
They will contact your mortgage company to obtain an amount that has to be paid out on the closing date. Following the closing they will arrange for payments of the balance of your mortgage, the real estate commission and any outstanding realty taxes and utility arrears.
Unless your lawyer advises you otherwise, their office will contact all utility companies and arrange for a final meter reading.
You will meet your lawyer few days before closing to sign all closing documents and to review the statement of adjustments. On the day of closing they will receive the closing funds and release the keys and the deed/transfer to the purchaser’s lawyer.
Are you planning on buying or selling your home this spring or summer?
We would like to invite you to our real estate seminar for local residents on Saturday, May 2nd, from 10am to 11am, at our offices located at 340 March Road, Kanata. If you are interested please RSVP by visiting our website www.compellingcounsel.com or sending us an email to firstname.lastname@example.org.
EDITOR’S NOTE: This publication is the 24th installment of our firm’s Legal Matters series, which answers a reader’s question every week. If you have a general legal question that you would like to have addressed please send it via email to email@example.com.