What should you be aware of new build agreements?
You should look for the capping of costs. Sometimes the developer will pass on their costs to the purchaser. You want to make sure that is capped ahead of time. You don’t want issues to happen during closing. It could easily be an extra 5% of the purchase price. On a $1 million dollar property, that’s an extra $50,000. That’s why it’s worth hiring a real estate lawyer. Spend a small amount of money to save a lot of money. Also, you want to be able to assign the property to someone else. You need to be able to sell the property to someone else if you have a change of mind. Sometimes people have financial problems and they need to get out of contracts.
Real estate lawyers try to mitigate errors in advance. They need to make sure they have enough time to get everything done. They must get an ID in advance of the appointment. Then the real estate lawyer meets with the client during video chat. The client then puts the ID next to their face during the video chat. Banks are also okay with doing bank documents over video chat. The client doesn’t even need to be in Ontario.
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The clients print out the documents and then the client couriers the package to the law firm. Sometimes the developer or bank also wants a hard copy.
You need to know the main reasons why clients do not close the real estate deal. Sometimes this happens when the client finds out about closing costs. Clients hate when they do not know the exact amount that things will cost. Sometimes clients do not understand the closing dates. Further, some clients don’t know about occupancy fees as well.
Sometimes they are not aware that they have to cover an HST rebate. Even though they have to pay for it upfront, they can often get the money back from the CRA. If it’s an investment property, they must pay the HST. These are common reasons why people want out of new build properties.
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During COVID-19, many developers delayed building until the pandemic was done. That’s why it’s important to have tight contacts with real estate law.
Agents should suggest important clauses to allow for HST. If someone is living in the property, they won’t get the HST rebate. So it should be clear that no one lived in the property. Another important clause is indemnity. The assignor would be liable if they don’t close. If the developer can’t finish the property, there should be a clause saying that the assignee will be given back the deposit. That’s not often mentioned during the average real estate contract. If Richmond Hill Realtors do that it will ensure a smooth closing.
People reach out to Richmond Hill real estate law firms all the time for help with clauses. That is why real estate lawyers exist. Realtors shouldn’t have to learn how to draft contracts. If you are doing an assignment agreement, feel free to reach out to your local real estate lawyer. If you need help with mortgage refinancing, reach out to us. We will connect you with a few real estate lawyers for a free 15-minute phone consultation.
Does it cost twice if I need to remove and add a name in the title?
Real estate lawyers do a lot of title transfers. If you have a property with someone on the title, and you want to remove them, do you have to pay double? To answer this question, it’s one transfer. This is done to remove someone from the title. At the same time, the new person is added. There is no need to pay twice. How long does it take? It is done immediately as it’s registered by the Richmond Hill lawyer online. It can all be done as part of one transaction. If you wanted to do a title transfer and then refinance in a few weeks, it would cost more. You would need to wait for the title transfer to be done before you worked on the refinance.
In conclusion, learn more about the law on our Youtube channel.
Real Estate Lawyer Richmond Hill FAQ
Do you work with brokers to register private mortgages?
A lot of law firms can do this for any transaction under $50,000. The law firm can represent the borrower and the lender.
How much does it cost to hire a real estate lawyer?
Most real estate lawyer fees are less than $1000 or around that. It’s very affordable.
For first time homebuyers, do they get the rebate at the time of closing or do they have to apply for this afterwards?
First house owners do get the rebate at the time of registration.