Whether you are buying a residential real estate for the first time or you are used to buying residential properties, you must be aware of the fact that you won’t be able to move into the new house until a formal legal closing on the property has been carried out.
Typically a real estate lawyer or law firm receives a complete and binding agreement from you or your realtor after the agreement of sale and purchase is firm and binding. It is always best to acquire assistance from a reliable real estate law firm prior to the agreement of sale and purchase becoming firm and binding. The real estate lawyer can advise you on various clauses of the agreement vis-à-vis your interests.
No matter how you describe it, there’s a lot to be done by a real estate law firm before you can move into the property. Though each file is different, a standard purchase transaction will involve the following steps at the real estate law firm:
● The realtor’s office will send the complete and binding agreement to real estate law firm’s office.
● The real estate law firm will conduct Title Searches on the property, Writ against purchaser or the seller, obtain Property Tax Certificate. Not Included in the standard searches: Physical Inspection of Property, Commission survey, Work orders, Zoning Compliance, etc. unless specifically requested by the buyer.
● The real estate law firm will receive Mortgage Instructions from Lender, obtain title insurance for owners and the lenders and home insurance binder from your home insurance company.
● The real estate law firm will then draft transfer and mortgage documents.
● The real esate law firm will meet with you to sign the documents and verify your ID and provide signed documentation to bank for their review. Some banks require the documents at least 5 business days in advance of the closing date.
● The real estate law firm will receive funds from you at least 1 day prior to closing and the mortgage funds from bank on the day of closing.
● On the Closing day, your real estate lawyer will exchange documentation and keys with seller’s lawyer and provide certified funds to the seller’s lawyer in escrow. Your real estate law firm will register the transfer and mortgage and then release keys to you.
● The real estate law firm will then report to buyer, bank, city for property taxes and condo corporation, if applicable, within a certain time frame.
At the same time, the real estate law firm is dependent on various professionals and you to complete your closing smoothly. To that end, you have to make sure that:
● You have contacted your real estate law firm well in advance of your closing and provided them with all the information they need to complete the documentation.
● You have met with a mortgage broker to complete your mortgage application and have provided all the documents required by the lender. You emphasize to the mortgage broker to complete the mortgage approval at least 10-15 business days prior to closing date and have the mortgage instructions sent to your real estate law firm well before the closing date.
● You have had the property formally inspected by a professional building inspector.
● Your homeowner’s insurance policy is completed and in place and you have provided the insurance advisor your real estate lawyer’s information and vis-a-versa.
● You have contacted the utility companies to set up all the utility services in your name before the official closing date.
Finding the Best real estate law firm
All of these may sound like a big set of tasks to do. And yes, it might even give you some headache at some point if you aren’t well versed with the closing process. All the tasks have to be completed efficiently and smoothly in a timely manner to prevent any disputes in the future.
If you are seeking to hire the best real estate lawyers, Madaans LLP has a fantastic team of individuals who have considerable experience in the field of real estate law.
Whether you’re closing a sale of a commercial property or residential home, our professionals will assist you through the process.