A lawyer acting on behalf of a purchaser or a vendor must ensure that the interests of his client are adequately protected. However, since the purchaser of real estate is at greater risk of losing his or her entire investment, a lawyer acting for the purchaser must be extra prudent and cautious. A party to an agreement of purchase and sale would be well advised to seek legal advice prior to executing the agreement. Once the agreement is executed and accepted by the parties, no amendments can be made without the consent of all the parties.
Once the offer of purchase and sale has been accepted by the vendor and the purchaser, the lawyer for the purchaser will begin by conducting a number of searches including title, property tax, building and zoning, and many others depending on the nature and use of the subject property.
At THIS JUNCTURE, the purchaser will be advised by the lawyer as to need and wisdom of purchasing TITLE insurance.
While the lawyer for the purchaser conducts the initial searches, the purchaser will need to ensure that adequate arrangements for financing and insurance for the property have been made. The purchaser's financial institution will ask the purchaser to sign a Mortgage Commitment Letter, which should be reviewed with the purchaser's solicitor before it is signed.
After the purchaser's lawyer has conducted these initial searches and uncovered any deficiencies from them, he or she will prepare and deliver a letter of requisitions to the vendor's lawyer before the date set out in the Agreement of Purchase and Sale requesting that the deficiencies be addressed prior to closing.
A few days before closing, the purchaser will be required to meet with the lawyer to sign all necessary documents and to provide the lawyer with the balance of closing funds.
On the day of closing, the lawyer for the purchaser will handle all financing matters, and will arrange with the vendor's lawyer to exchange keys, documents and cheques, and the purchaser’s solicitor will need to register all necessary documents, usually electronically. After registration of the documents, the vendor's solicitor will release the funds and the purchaser's solicitor will release the keys.
As can be seen by this very brief summary of a typical purchase and sale transaction, there are a multitude of intricacies, which require the knowledge and skill of a knowledgeable and experienced legal practitioner. Whether you are a purchaser or a vendor of residential, commercial or industrial property, we at Paradiso & Associates have the knowledge and experience to ensure that your interests are properly represented.