Are you looking for a real estate law guide? Do you need assistance with real estate law in Canada? Here’s our helpful information!

Whether you’re buying or selling a home in Canada, Clearway is here to help connect you with a qualified lawyer who can facilitate your transaction.

Real Estate transactions typically involve large sums of money and a fair degree of complexity. It’s wise to seek legal guidance to ensure you and your assets are protected.

Working with a Real Estate Lawyer

First off, don’t be intimidated. Lawyers are here to help!

Most real estate lawyers work on flat fees. It normally costs around $1000-1500 in legal fees to support a real estate transaction. Yes, you can complete a transaction without legal counsel, but transferring property is far more complicated than most people think.

A good real estate lawyer will ensure your paperwork is in order; there are no legal issues with the property; and that funds are received/paid when the transaction is complete.

Canadian Real Estate Law Guide

Real estate law in Canada normally has tight timelines. Therefore, it’s important to give the lawyer as much time as possible to get everything done correctly.

Don’t leave things to the last minute. It’s important to know the possession dates and have everything ready to go by then. Buying a home is not as stressful as family law, but it can still be complex in other ways.

What Does a Real Estate Lawyer Cost?

Most lawyers in Canada charge hourly for their time. Rates are often based on experience and the area of law and can vary from less than $100/hour to more than $500/hour.

Real estate law is usually predictable in terms of cost and may be offered at a flat fee. Typically you can expect to pay $1000-$1500 for a standard real estate transaction. Complex transactions may cost more; your chosen real estate lawyer should help to give you a sense of the cost before you proceed with the transaction.

How Long Does a Real Estate Transaction Take?

You should reach out to a real estate lawyer once you have a signed agreement with the seller or buyer, and the price, conditions, and closing date have been agreed upon.

However, there’s no harm in seeking out a real estate lawyer for support and advice before a sale/purchase. You can usually expect the closing process (time to complete) to take 4-5 weeks. The following is a list of important items your Real Estate lawyer will handle on your behalf.

What Does a Real Estate Lawyer Do?

Real estate lawyers manage a lengthy, but fairly well-prescribed series of steps to support clients through a real estate transaction.

These tasks are designed to help ensure that ownership and funds are validated/transferred correctly and in a timely fashion.

Specific tasks may include any or all of the following:

-Checking the title (ownership) of the property and verifying property surveys

-Engaging with both buyer and seller mortgage companies

–Reviewing the appraisal

-Preparing loan documents

-Distributing funds between buyer/seller and making payment to realtor(s)

-Transferring title (ownership) from seller to buyer

-Paying any property taxes and dealing with title insurance. (where applicable)

What to Look for in a Real Estate Lawyer?

Your best option is to find someone who specializes in Real Estate (at least partially). We’ve all heard the maxim “Jack of all trades, Master of none”, and this applies equally to legal professionals.

While it’s not uncommon to have lawyers who blend Real Estate with another area of specialty, you’ll likely want to avoid using a lawyer who only dabbles in real estate occasionally. As with many things, there is no substitute for experience and expertise, and Clearway can help you source a lawyer Real Estate-focused practice.

You’ll want to seek out a lawyer that you like and makes you feel at ease. Real estate transactions can often be stressful thanks to the large sums, tight timelines, and general lack of process familiarity.

Having a lawyer who helps to ease you through the process is a worthwhile investment. Don’t hesitate to have a few exploratory chats with prospective lawyers before settling on the right lawyer for your needs.

What About a Real Estate Agent? Do I Need One?

The short answer is no, you don’t NEED a Real Estate Agent, but you’re generally wise to use one.

For buyers, a real estate agent’s costs are typically covered by the seller. Having a buyer’s agent helps identify properties, arrange showings, liaise with Sellers/Seller’s Agents, and prepare offers.

A seller’s agent will help with a home appraisal, preparing the home for listing, setting a listing price, advertising the property, arranging showings, negotiating offers, and preparing acceptance paperwork.

Sellers can generally expect to pay 2-2.5% of the transaction value in commission upon the sale of the property, but this amount can be negotiated before deciding to list a property for sale.

Things to Consider When Buying a Property:

When buying a property good judgement can quickly be overwhelmed by enthusiasm and competition. It’s best to have a well-thought-out plan supported by legal and real estate professionals to help avoid finding yourself in a bad situation.

Understand what you can afford. Speak to your bank or a qualified mortgage broker to ensure your property goals match your means.

Get a pre-approval. Most buyers require a mortgage, and getting pre-approval (from a bank or mortgage broker) helps to ensure you’ll be able to fund a purchase if you are successful.

Hire a real estate agent, it’s free to buyers! Yes, you can go it alone, but using a buyers agent can help streamline the search, and give you a competitive edge in the bidding process. Find a great lawyer. That’s what Clearway helps you do.

Real Estate Law Guide Canada

A real estate lawyer will help to guide you through the purchase process and protect you against most risks during the transaction.

Hire a home inspector. In today’s overheated market, inspections are sometimes a luxury, but, when possible, it’s always a good idea to have the home inspected before placing an offer. Consider your subjects.

These are terms that allow you to back out of a deal if it doesn’t feel right or something outside of your control happens. (i.e. Home fails inspection. Bank doesn’t issue financing etc.)

Stick to your plan. It’s easy to get wrapped in the frenzy of property buying. Don’t let a multiple-offer situation or exasperation steer you off course.

Things to Consider When Selling a Property

Selling a property can be exciting, but also very stressful. While it’s possible to list and sell a property without professional support, having the guidance of real estate professionals (lawyers and agents) is generally accepted as good practice. Here are a few things to consider when selling your property.

Get clear on your motivations for selling.

Some people are trying to maximize their sale price, others are trying to offload the property at a fair value as quickly as possible. These factors will impact how you approach the market. Understand the market factors.

Real estate prices tend to peak during spring/summer, but may also be impacted by interest rates and other market influences.

Yes, real estate agents can be expensive (2-2.5% of property value), but leveraging their expertise can reduce your risk and help you negotiate the best possible price for your property.

Find a great lawyer. That’s what we help you do at Clearway. A real estate lawyer will help to guide you through the sale process and protect you against most risks during the transaction.

What is Title Insurance?

This is insurance that you can optionally add to your property to protect against ownership disputes, issues with zoning, or errors on the title. Using a qualified real estate lawyer may obviate the need for such insurance, but this is something you should discuss with your lawyer.

Who Should Appear on the Property Title?

This is a matter to be decided among the individuals funding the purchase, however, the title would typically reflect the names of all owners and their proportional ownership.

Married or common-law partners usually co-own properties equally. Switching the title from sole owner to joint tenancy is something you’ll want to discuss with a lawyer.

How do Condominiums Differ from Homes?

In a home, you usually own the dwelling (building) and the associated property (land). The only “common” property typically exists at the boundaries between properties and may include things such as fences, paths, walkways etc.

In the case of condominiums, townhomes, duplexes, apartments, and other shared properties, you own the unit (dwelling) and possibly some portion of the property (land) but also share ownership in common property such as hallways, lobbies, fitness facilities etc.

What is a Conveyance?

A legal term to describe the process of transferring property ownership. This is basically what you’re paying a real estate lawyer to do on your behalf.

What is a Mortgage?

A mortgage is a type of loan usually issued on property. Unlike other forms of loans, they’re considered lower risk as they’re secured against the value of your property. Mortgages usually have long (20-30 year) payback periods and come with low interest rates. Mortgages are often arranged through banks or Mortgage brokers.

What is a Default?

Defaults are rare and are usually the result of failing to comply with the terms of a mortgage agreement. These often include failing to make payments, failing to insure the property, failing to pay property taxes, and/or destroying the property.

We hope you got some value from this Canadian real estate law guide.

Author: David Chen, a Vancouver native, is a highly respected real estate lawyer in Canada with over 20 years of experience in the field.