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The Role of a Lawyer When Buying a Home
Written by Administrator
Monday, 04 May 2009 11:29
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There is nothing in life more exciting that buying a new home. Home buyers thrill in watching their new home take shape, knowing that they are getting exactly the finishes and features they want. Yet the excitement and emotion of buying a new home can sometimes overshadow the fact that your home purchase also means entering into a complicated legal agreement. Chances are, it will also be the largest financial investment of your life. Due to the complex legal aspects involved in buying a new home, it is strongly suggested that home buyers consult with a lawyer before signing on the dotted line. When you buy a new home, the contract, or the signed Agreement of Purchase and Sale document, between you and your builder is your assurance that you will receive exactly what you have purchased, at the price that you have agreed to. It is also the builder's assurance that you will follow through to the end with the purchase. Some home buyers sign the contract first, and then take it to their lawyer for review. By this point, however, it is too late for the lawyer to suggest any modifications or changes. Alternatively, make your offer conditional on your lawyer's favourable review. It is sometimes wise, and less costly, to agree with the builder on price and terms before involving a lawyer. (If you cannot reach an agreement with the builder on these fundamental points, there is no need to pursue the contract any further.) The lawyer will look for certain clauses which include information on restrictions and obligations that may affect your rights and responsibilities as a home owner. Typically, clauses may mention the need to bus students to the nearest school. A clause may mention a right of way or an easement registered against the lot. For instance, will there be a fire hydrant on your lot, or an electrical box? Clauses concerning mortgage approval must also be treated seriously. A large number of Agreements of Purchase and Sale include clauses making them conditional on receiving mortgage financing. The Agreement should specify the number of days allotted for obtaining the mortgage, the process for notifying the builder and what will happen if the mortgage application is turned down. The lawyer may suggest changes to the wording and the clauses of the contract to further promote your interests. Immediately notify the builder of these recommendations, allowing enough time for a review by the builder and/or the builder's lawyer before acceptance or possible counter. Once your offer has been accepted and all conditions have been waived, you have a firm contract. Your lawyer will begin the legal process of transferring ownership of the home and you can now go on to the next, and perhaps most, exciting step of home buying . . . getting ready to move into your new home! For further information about understanding and completing the Agreement of Purchase and Sale, read the article Writing Up the Contract. |
