In the movies, property sales go from looking around the property to shaking hands and giving the buyer the keys to their new house. Although you may see all these things during home purchases and sales, it is an oversimplified version of reality.
In truth, there are more people involved in home purchases. Aside from the seller and the buyer, you have the real estate agent, mortgage broker, home inspector, and lawyer. However, among this roster of additional people, the lawyer providing real estate conveyancing is one of the most important.
What is residential conveyancing, and why is it important? What can you expect from your lawyer? This article will answer all these questions and more.
What Is Residential Conveyancing?
In essence, a home sale is an agreement between a buyer and a seller. This is put into paper as a contract, binding both parties by law to their agreed-upon terms. That is why you need a lawyer when buying or selling a home.
Residential or real estate conveyancing is the process of legalizing a property sale. It covers drafting sale documents and contract reviews, negotiating, and transferring titles.
Property conveyancing can also protect your rights as a buyer with rights of first refusal and encumbrances, such as rights of way, easements, and covenants. Real estate conveyancing is also crucial when you are thinking of refinancing your property.
What Can You Expect from Your Property Conveyancing Lawyer?
The real estate conveyancing process can be divided into three parts: gathering information, assessing and signing papers, and finalizing agreements. Once the realtor has completed the Contract of Purchase and Sale, it is time for the legal leg of the property purchase to start.
Parties involved will gather all information relevant to the property and the agreement at this stage of the conveyancing. Your lawyer will check the property title to see if it is indeed under the seller’s name or they have the authority to sell the property on another person’s behalf. Your legal team will also make inquiries to ascertain that the real estate has no outstanding mortgages, tax liabilities, or liens.
If the property still has existing financial obligations, your lawyer will work on a payout statement from the charge holder. It ensures that the agreed-upon amount during the property sale is enough to cover the charges, and you will not shoulder any additional costs.
Assessing and Signing Papers
When the title is confirmed to be free from any existing financial obligation, your lawyer will begin the review and subsequent signing of transaction and sales documentation. These documents include Form A Transfers, GST Certificates, Parking Stall and Locker Assignment (if applicable), Statement of Adjustments, and Vendor 116 Statutory Declarations of Income Tax Act.
After signing the documents, they will be sent to the purchaser’s solicitor with a letter of acceptance should there be unsettled financial obligations. The letter accepts the arrangement to discharge financial fees in the title and disburse sale proceeds as needed.
The purchaser’s solicitor will file Form A Transfer with the Land Title Office to finalize the agreement. They will also provide you and your lawyer with sale proceeds that you will use to pay any unsettled charges on the property.
Your lawyer will also prepare a Form C Release for the charge holder to sign and return after settling all financial obligations on the title. Once the form is returned, your lawyer will file it with the Land Title Office. With this, the sale is finalized and legalized, making you the property’s new and legal owner.
Residential conveyancing may seem to be a complicated process. However, if you hire the right lawyer on your side, you do not have to worry about a thing.
Dreyer and Associates Lawyers LLP is a respected law firm specializing in family law, wills and estates, and residential conveyancing in Langley, BC. With over ninety years of combined experience, you know we can address all your legal needs. Contact us for a consultation today!