Real Estate Lawyer – Residential Property
If you are contemplating to sell your condo, you can do it yourself, or engage a real estate professional. Though this is a choice you have, engaging an experienced Real Estate Lawyer is essential and always beneficial.
In a simple condo purchase, the seller contracts with a real estate agent to find buyers. Broker holds negotiations once the potential buyer is on board. On reaching an informal discussion, the buyer and seller enter into a formal purchase agreement.
The buyer now proceeds to get a financing commitment. A title search is done to ensure the legal title is accurate, valid and satisfies the need of the buyer and the lender. Now the actual transaction takes place as the property changes hands and the purchase price is transferred to the seller.
It is recommended to consult your Real Estate Lawyer to make sure all your legal obligations are met and protect your interests at every step of the condo sale. Let’s look at the factors which are involved when you are in the process of selling your condo.
Obligation to Disclose
All sellers have a legal obligation to disclose all latent material defects which are known to them in the condo and common elements like the exterior of the condo, community features or other areas like the land area of the property. You should be ideally disclosing all the defects which a buyer is unable to identify through a visual property inspection.
All the prospective and declared properties and special assessments should also be disclosed, irrespective of the fact whether they are part of the documents being handed over to the buyer. The fact that the condo complies with the municipal by-laws should also be included in the purchase and sale agreement.
Make sure all disclosures are done properly and timely to avoid any possibility of the buyer suing you in the future.
Sharing of Documents
Sellers are not under any obligation to hand over any documents to the buyer except the condominium documents. Providing all appropriate documents proactively to the buyer helps in closing the sale of the condo quickly.
In many purchase and sale agreements, the buyer may include clauses imposing legal obligation on sellers to provide specific documents. If the list of documents is ready for the condo sale transaction, it will help you and the buyer to be clear about what exactly is present and what is to be handed over to the buyer. Some of the vital documents include:
- Condo corporation’s latest reserve fund plan and report – sharing this with the buyer can help them to understand the good health and financial planning of the corporation
- Operating budget of the condo corporation – as any potential condo owner, the buyer would be interested in knowing how their contributions to the corporation are being spent; possible spending avenues include property management, amenities, maintenance, etc
- Minutes of Meeting of the Condo Corporation Board Meeting – Latest minutes of the condo corporation board meeting helps to understand any future operating budget deficits or surplus coming up and how it can be managed. Potential increases in condo fees can also be figured out
- A detailed guide of the Condo corporations’ rules and bylaws – many potential buyers will want to know about the exact clauses with respect to the amenities, parking and pets
- Physical survey and property report of the building, condo unit and the land area around it including the common area and its structures
Though many standard purchase agreements are always present, the exact purchase agreement used by the seller should be customized for the transaction. Few of the clauses which should be addressed in the transaction include:
- Determine if the property alterations and additions are done lawfully
- Determine the plans for property changes, their legal aspects and implications
- Reviewing the condo corporation rules and bylaws
- Determining the consequences of asbestos, termites or lead-based paint is found in the home inspection done by an architect or engineer
- Consequences if hazardous waste is found in the property inspection
- Legal implications in case the transaction is not closed; its impact on the down payment and how will it be held in escrow? Planning how to make the payment and whether the closing is suitably modified to reflect the upcoming financing
- If the buyer is going to obtain financing, then the legal clauses should reflect the same
In a purchase and sale transaction, closing is one of the most vital steps. The title passes to the buyer from the seller, all the associated documents are prepared, and the purchase consideration is paid to the seller.
If the buyer has commissioned a mortgage, the purchase consideration is paid off from the proceeds of the mortgage loan. A closing statement is also prepared where the credits and debits of the seller and buyer are listed. Typically, the closing statement is made before the actual closing process is completed.
At this stage, your Real Estate lawyer elaborates the type of closing costs, their respective amounts and their reasonableness they are in the transaction. The final closing mortgage, deed and other agreements are signed and properly executed.
In the closing process, the buyer, seller and their respective Lawyers are present along with the lending company representative.
Avoid Unclear Terminology
Presence of a knowledgeable Real Estate Lawyer can make your condo sale smooth and quick. Inclusion of vague terms in the agreement can pose issues in the future if it happens to clash with condo rules or any other laid down standard legal procedures.
For example, conveying seller’s rights in the property to negotiate on their own in the presence of the broker can be done only with the support of the Real Estate Lawyer. In the absence of a clear agreement, the seller may be needed to pay multiple brokerages irrespective of the fact whether the sale occurs or not.
Seller’s rights can be protected if their Real Estate Lawyer negotiates rights to withdraw the property from the market or is unable to provide a valid marketable title.
Once you have entered the condo sale transaction, your Real Estate lawyer will elaborate the tax implications of the transaction. To the seller, the income tax consequences of the transaction will be important. The Lawyer will also be able to advise the seller on the exclusion of capital gains to make sure that the tax provisions can be utilized.
How We Can Help
At Nanda & Associate Lawyers, our experienced Real Estate lawyers understand your specific circumstances and provide tailored and customized solutions for each of them.
Our Mississauga Real Estate Lawyers are available for a no-obligation free consultation. Come and experience our quality legal counsel and personalized care we give to each client. We ensure prompt communication and a professional approach to achieve successful outcomes for you.
Feel comfortable interacting with our caring team who speak more than 15 languages like English, French, Spanish, Italian, Portuguese, Albanian, Hindi, Punjabi, Kannada, Telugu, Tamil, Bengali and much more.
- Title Insurance
- Electronic Registrations and Choosing a Lawyer
- Useful Forms and Offer Clauses
- Land Transfer Tax: Ontario
- Land Transfer Tax Refund: Ontario
- Land Transfer Tax: City of Toronto
- Closing Adjustments
- GST Rebates: 3 Types When Buying From Builder
- Mortgage Financing
- RRSP Program
- OHOSP: Ont. Savings Plan
- TARION: New Home Warranty
- Types Of Ownership
- Insurance: 3 Types
- Condo Rules
- Condo Act Changes
- Buying Condo From a Builder
- If your Selling