By Mark Weisleder, Senior Partner RealEstateLawyers.ca LLP
As we approach the year 2025, here are five New Year’s resolutions for you to consider in order to protect yourself and your clients in the coming year.
1 – Review title search before listing a property
Prior to listing a property, it is crucial to conduct a thorough title search. This will help avoid situations where there is insufficient funds at closing to pay off the seller’s lender, leading to complications and potential legal issues. By reviewing the title in advance, you can identify any existing mortgages or debts that need to be cleared before the sale can proceed.
2 – Ensure clarity in rental contracts
When including rental agreements in a property sale, be specific and ensure that the contract can be easily assumed by the buyer. Clearly state that the buyer will sign any necessary documents to take over the rental contract before closing to avoid post-closing complications.
3 – Confirm key provisions with the seller
Always confirm that the seller will provide two sets of keys and garage door openers at closing. Additionally, address any specific requirements such as obtaining a condominium FOB from the management company or acquiring a mailbox key from Canada Post after closing.
4 – Stay proactive until the deal is finalized
Stay involved in the transaction until closing, ensuring that all deposits are paid and conditions are met in a timely manner. Anticipate potential issues and address them promptly to prevent any last-minute complications. If there are any property maintenance or repair tasks to be completed by the seller, address them early to avoid delays.
5 – Seek expert advice when needed
If you encounter any uncertainties during negotiations, do not hesitate to seek expert advice on matters such as foreign buyers, zoning regulations, HST, condominium status certificates, or legal requirements for basement apartments. Consider making the offer conditional upon approval from a lawyer to ensure all legal aspects are properly addressed.
Wishing you a happy, healthy, and successful 2025.
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