Buying a home is an exciting time, whether it`s your first property or your tenth property. When a real estate transaction is completed, the title deed is registered in the buyer`s name, the seller receives the proceeds of the sale and the keys are handed over to the buyer. But did you know that your real estate lawyer`s work doesn`t stop there? In order to carry out the real estate transaction, certain obligations must often be fulfilled. The seller, buyer and their respective attorneys give obligations that each party can rely on to resolve issues that arise after closing. Whether you`re buying or selling a home, considering investment property for yourself or through a joint venture, leasing commercial space, mortgaging or developing land, our real estate lawyers know how to protect your investment. Sometimes the businesses involved in selling a home or property are very important, and non-compliance with these businesses can have serious consequences. For example, if a seller fails to pay the mortgage, the property remains subject to the mortgage and the seller`s mortgage holder could seize or sell the property to force payment of the mortgage. If such significant negative consequences are possible, the buyer`s lawyer may insist that the seller`s lawyer also give his obligation to pay the amount necessary to discharge the seller`s mortgage or other property privileges, and to obtain and grant a registered discharge upon completion. With each purchase of a residential property, the seller`s lawyer sends a letter of confidence to the buyer`s lawyer. This letter contains the closing documents and commitments that must be made by the seller`s lawyer.
Seller`s and Buyer`s lawyers mutually agree to resolve all outstanding issues after closing. There are four types of obligations in a residential transaction, namely: Whether you`re buying or selling a property, we know it can be a stressful process. We deal with topics to make your life easier. Kahane Law`s real estate lawyers buy most residential properties at a flat rate. Our fixed fee ensures that customers know the fees of a standard transaction before committing to us. For more details, please refer to our flat fee. Call 403-225-8810 or email us today. When buying a property, the usual obligations of the seller`s lawyer are: an obligation in the case of real estate transactions is a special promise made to persuade (persuade) the other party to complete the transaction, and it can be performed as if it were a separate contract. Completing a real estate transaction in Canada (registering the deed, handing over the keys and releasing the money) is generally not the end of the legal process. To complete a real estate transaction, the buyer, seller and their lawyers often make commitments that other parties can rely on to resolve certain issues after closing.
The buyer`s lawyer will rely on these promises to complete the real estate transaction. Without these obligations, the consequences could be significant. For example, if the seller does not pay the mortgage and defaults, the property could still be mortgaged. This means that the lender could seize the property to collect payment from the new owner. A real estate transaction cannot be completed until lawyers ensure that there are no more trust funds, no outstanding balances are due, and all businesses are completed. Therefore, a file can often remain open for months after the keys have been handed over to buyers and sellers have received their money. As the Law Society of Upper Canada makes clear, lawyers are subject to a professional obligation not to perform an obligation that they cannot fulfill, and if a lawyer fails to meet the obligations incurred as a result of an obligation he or she has incurred, he or she may face professional discipline, including possible exclusion, and be sued for any resulting loss. that the buyer may have as a result of the invocation of the obligation. In the context of a real estate transaction, a commitment is a binding promise. They are intended to convince the parties to conclude the transaction. Similar to a contract, an obligation is enforceable.
The Law Society of Alberta, an organization that regulates practising and non-practicing lawyers in Alberta, says lawyers are prohibited from making commitments they cannot meet.