he Importance of An Attorney When Buying Real Estate
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t makes good business sense to seek legal advice when purchasing property because of the complexities that come with the process. There is a minefield of information and detail which purchasers need to take into consideration before paying or signing a contract which could expose them to losing their initial deposit (as much as 10% of the purchase price!). For example, when purchasing a single house, numerous factors such as the title(s), approved structures, surveyor’s identification reports, conflicting valuation reports should be considered. Similarly, when purchasing an apartment or townhouse there are additional factors such as restrictive covenants, strata rules, parking allocation, common area designation and maintenance fees. A lawyer can help you understand and protect your interests. The industry standard for legal fees ranges between 2 and 3% of the purchase price. Despite the increase in cost to the transaction, this is money well spent.
your behalf, lawyers may also make sure that the contracts adhere to local laws and regulations as well as address any specific issues that might affect the future use of the property. Realtors often provide their clients with standard forms, which appear to cover all circumstances or seem easily customizable for unique circumstances. However, the standard contract may fail to address a number of key legal issues that may affect the present and future use of the property and potential costs. Among other things an attorney would ensure that the following issues are addressed in the Agreement for Sale: Ÿ whether or not alterations or additions made to the property were done within the confines of law; Ÿ whether or not proposed changes to the property and its use can be done lawfully; Ÿ the risk of losing the deposit if closing does not take place or if he does not obtain the required financing; and Ÿ the security of properly worded escrow instructions to protect your down payment.
Contracts
While most purchasers quite ably negotiate face-to-face with the vendor or through their realtors, the terms of the deal must be properly set out in a contract in order for them to be legally binding. As such, in addition to negotiating on
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