real estate lawyer burlington | REAL ESTATE LAWYER BURLINGTON

What is a Bridge Loan?

BRIDGE LOAN

A Bridge Loan allows for short term financing. Generally, this is used if you have bought a new home but your old home that you’re living is scheduled to close at a later date.

As a real estate lawyer I often recommend that people obtain a Bridge Loan. Depending on the circumstances.

For example, Homer lives at 123 Springfield Way. Homer has now purchased a new home being 987 Bedrock Place. The closing date for his new home is June 1, 2020 (assuming this is a weekday). However, the closing date for his current home 123 Springfield Way is June 10, 2020 (assuming this is a weekday).

Homer is not independently wealthy. As such, the only way he can buy his new place is having to sell his hold place. Therefore, his mortgage company will provide him with enough money to buy his new place. But since he his closing date for his current home will happen after. He will need to “bridge” the gap in financing.

Mortgage companies as a result. Mortgage companies will provide short term financing or in laymen terms a Bridge Loan.

In a separate blog post I discussed why you shouldn’t buy and sell the same day.

Don’t Get Stressed

Often a realtor may suggest that you should buy and sell your home the same day. This isn’t always preferred.

If you require a Bridge Loan speak to your mortgage company or bank in advance.

REAL ESTATE LAWYER NEAR ME

If you need a real estate lawyer call my office 416-505-4901

WHY YOU SHOULDN’T SCHEDULE THE SALE OF YOUR HOME AND PURCHASE OF YOUR HOME THE SAME DAY

Don't Buy and Sell the same day

Many people will schedule the sale of their home on the same day as the purchase of their new home. There are many reasons why as a real estate lawyer we strongly advise against this.

MOVING IS STRESSFUL

Moving is always tough. Children and pets can make it even more stressful. If you are selling your home and moving into your new home you will have to complete the move in one day. Even when having prepared in advance this can be tough. Remember, you have no place to shift your boxes. You can only move into your new home once you are officially the owner.

WHAT IF YOU DON’T GET FUNDING IN TIME

Mortage companies are notorious for not releasing mortgage funds in time. If your real estate lawyer does not receive the funds from your mortgage company in time. Your real estate lawyer will be unable to close the transaction. That means. You can’t move into your new home.

DELAYS

Anything can happen on the day of. I had one client whose car broke down on the day of her sale and purchase. When we finally closed the transaction she was unable to pick the key to her new place. As such, she was stranded. This is just one example of what can happen.

WHAT IF THE PERSON BUYING YOUR HOME DOESN’T GET FUNDING

In the situation mentioned above what if you don’t get funding in time or in the situation where the purchaser of your home doesn’t get funding in time. Either of these situations can create a domino affect. For example, your home is for sale. You plan on buying your new home from a portion of the proceeds of your sale and a portion will be from your mortgage company.

If the person buying your home doesn’t get funding in time. It means you can’t buy your new home. If the people you are buying from were waiting on you etc., etc.,

HOW DO YOU AVOID THIS?

Don’t schedule your purchase and sale for the same day.
Have a back-up plan if you can’t move in storage facility etc., yes it sucks.
Look into a Bridge Loan when you are negotating your loan.

WHAT IS A BRIDGE LOAN

A Bridge Loan is quite frankly the most efficient method to use. In these situations. Folks will schedule their purchase to close prior to the sale of their home. For example, you’ve scheduled the purchase of your new home for May 15, 2020 (assuming this is a weekday). You can schedule the sale of your home for whatever suits you. Some of my real estate clients will obtain a Bridge Loan for one day, others for maybe a week.

Essentially, what happens is the Bridge Loan bridges for the mortgage you have on the property you are selling. Frequently, the cost for Bridge Loan can be very minimal depending on how long you are keeping it. It can be as low as $30.00. The cost of the Bridge Loan will be well worth it.

You can essentially keep your current home and start moving your items over to the new place first. You can move into your new place. Get a good night’s rest and continue to the move the following day.

DO YOU NEED A REAL ESTATE LAWYER?

Call my office I am a real estate lawyer servicing Burlington, Oakville, Milton, Hamilton and the Greater Toronto Area

Why you should think twice before buying a home with a friend.

It seems like the perfect opportunity. Two or more people decide to pool their funds to purchase a property. Whether that will be for a property to live in or for investment this has the potential for great financial return. It also, unfortunately can have terrible repercussions.

A prudent real estate lawyer will ensure that some of the potential pitfalls can be avoided.

Who will be on title?

The parties should decide who will be on title. Perhaps for credit reasons or personal reasons a party may not want to be on title. If that is the case, for the party not on title. They must ensure they have taken steps to ensure they can preserve their interest in the property. For the purposes of the Ontario government. If you’re not on title. It’s not your home.

Consult with a real estate lawyer first regarding the issue of title.

How will you take ownership? Tenants in Common.

Typically, spouses or family members may take title in the form of joint tenants or tenants in common. Both options have very different consequences when it comes to estate law. For the most part if you are purchasing with a friend, acquaintance or a stranger through some on-line site. The parties must ascertain what percentage of shares each party will have in the home.

Personal Issues

Ensure that the purchasers don’t have any personal issues that can affect the new property to be purchased. For example, if one of the purchases is married. Their spouse may have an interest in the home. If the parties split up. They could end up contesting their share in family court.

Another issue that could happen is if one of the purchasers ends up running into financial issues. For example, they are sued or end up having a civil judgement rendered against them. The party with the judgment may decide to place a lien on the property. As such, the party not affected is suddenly faced with a home that has a lien registered that becomes their responsibility as well.

There are many potential personal issues that can seriously affect a joint venture for the purchase of a home. Ensure you speak with a real estate lawyer first before embarking on such a transaction.

Who gets to sell?

One of the biggest issues ends up being who gets to sell? What if one party wants to sell the property for whatever reason. Perhaps they need money. The other party may not want to sell. Without any formal written agreement prior to, no party can exercise any rights for the sale without the other. In some scenarios one party may state they wish to retain ownership and will pay the other out. In those cases, ascertaining the value of the home may be contested. As the party looking to pay out will obviously assign a lower value to the home.

For the reasons above its very important to think twice before getting together with folks and purchasing a property. It’s strongly recommended that the parties speak with a real estate lawyer first.

Real Estate Lawyer Near me

Call my office 416-505-4901

REAL ESTATE LAW DOCUMENTS

REAL ESTATE LAW DOCUMENTS

In a series of blog posts I discussed the agreement of purchase and sale.

In this blog post I will briefly discuss the Statement of Adjustments

WHAT IS A STATEMENT OF ADJUSTMENTS

The seller’s real estate lawyer

In a real estate home closing the real estate lawyer acting for the seller will prepare a document entitled Statement of Adjustments. I have briefly discussed this document in a previous post entitled, Real Estate Law. Do the Math!

A good real estate lawyer will have his or her clients review the Statement of Adjustments with their client for accuracy.

The main purpose of this document is to identify the final sum of funds that the seller’s real estate lawyer will require on the day of closing.

The purchaser’s real estate lawyer

The Statement of Adjustments will be forwarded to the purchaser’s real estate lawyer who will then review it with his or her client for accuracy.

Generally, at my law office I will email the document directly to my clients prior to closing and seek their approval. Again another reason why its good to do the math in advance.

HOW MUCH MONEY WILL BE NEEDED

Many real estate law offices will use special software designed for real estate closings. This software will complete the calculations. However, in its most basic form the Statement of Adjustments will identify the purchase price minus the deposit. It will then provide for the property taxes the seller has paid out up to the date of closing. It will identify what portion is remaining for property taxes for the year.

In the case of condos there can be an additional line for common expenses.

If you don’t understand the Statement of Adjustments ask your lawyer. Remember, its good to know the exact number so there are no surprises on the day of closing.

REAL ESTATE LAWYER NEAR ME

Call my office to speak with a Burlington Real Estate Lawyer 416-505-4901

BUYING AN ESTATE SALE HOME

On a Saturday morning in the fall I received a call from a Burlington Realtor asking about how to word an offer on behalf of her clients the buyers, purchasing a home that would be an estate sale.

Since, I am such a super lawyer I emailed her back with some thoughts. There are a few things to consider when thinking about real estate and wills and estates and probate.

If you are the buyer you should ensure that the offer is structured as in a way to protect your client. The seller will likely have to go through the probate process. Probate is the official court process wherein, an individual or trust company will be appointed to manage the estate. The actual term is Estate Trustee or Executor but to make it easy I just refer to them as the Manager.

In some situations, the home might have already been put up for sale, with the seller still looking to be appointed as Manager. The official document needed is the Certificate of Appointment of Estate Trustee with a Will or Certificate of Appointment of Estate Trustee without a Will.

In this situation it might be practical for a flexible closing date that allows for extension as mutually agreed upon. In this type of transaction it is the buyer who assumes more risk. A real estate lawyer or realtor will advise about some of the obstacles. For example, the buyer might be looking to sell their home around the same time they close on the estate home.

The second more concerning scenario is the buyers lack of knowledge about the estate. What if there is an estate dispute? What if another family member of the estate contests the appointment? Estate Litigation can last for years. The last thing a buyer would want no matter how amazing the property is to be locked into a transaction waiting on the outcome of a protracted court battle. Also, what if the court finds in favour of another family member. Think of the consequences this could have?

As a result, it’s a good idea to have a probate clause in the Agreement of Purchase and Sale. This not only forces the seller to acknowledge they have the Last Will and Testament but also something to ensure they will start the court process expeditiously.

Samples of these clauses can be found here: http://www.isourcerealestate.com/blog/p/protecting-the-buyers-agent-in-an-estate-sale-(part-1)

For additional information feel free to call or email my office. I am a Real Estate Lawyer in Burlington.

My address is 901 Guelph Line, Burlington.

REFINANCING AND DEBT

Refinancing is a great way to eliminate your debt. This past summer as a real estate lawyer I handled many refinances. It was interesting to see that in some cases I had couples who were paying close to $10,000 in debt a month. A great deal of this has to do with hefty credit card bills and multiple lines of credits.

When refinancing mortgage companies will provide the borrower with a sum that is not only enough to pay off their current mortgage but also their debts. In fact, in almost all cases mortgage companies will make it a condition to pay off the debts.

In some of these couples situations who were paying close to $10,000 a month, with the refinance their monthly payment was $3000.

Not only were they able to sleep easier but it felt good knowing all that debt was paid off. The new mortgage company simply registers the sum against the property.

If you’re thinking of refinancing please call my office at 416-505-4901

REAL ESTATE LAWYER NEAR ME, BURLINGTON, OAKVILLE, MILTON

My address is 901 Guelph Line, Burlington.

You can also call or text at 416-505-4901

TOP THINGS TO KEEP IN MIND WHEN CLOSING ON A PROPERTY

The day of your real estate closing can be a stressful time. Most busy real estate law offices are unable to provide people an idea of what happens on the day of closing. Below are some things to keep in mind for a normal residential real estate purchase or sale.

STAY CLOSE BY THE LAW OFFICE

On the day of closing its good to be close by if need be. Sometimes on the day of closing a banking issue may arise or signing subsequent documents. Don’t travel abroad unless you have given your lawyer authority by way of a power of attorney.

CONTACT YOUR LENDER

Ensure on the day of closing you contact your lender. They know about your closing but its good to remind them that funds are needed as soon as possible.

WHERE WILL YOU PICK UP THE KEYS TO YOUR NEW HOUSE?

Ensure arrangements have been made with your lawyer as to where you plan on picking up keys to your new home. In the alternative, if you are selling ensure you have dropped off the keys.

If you are picking up keys do you prefer to pick up at your lawyers office or the other parties? Particularly, if your new home is located in a different city.

MOVING

Whether you’re moving to a new property or selling your current property. Ensure you have made the necessary arrangements to take all your belongings. As of 6PM on the day of closing you lose possession of your current property or gain possession of the new property.

Moving can be a very stressful time. With proper planning and co-ordination you will be able to manage the move effectively.

REAL ESTATE LAWYER NEAR ME

I am a real estate lawyer in Burlington, Oakville, Milton and Hamilton.

My address is 901 Guelph Line, Burlington.

You can also call or text at 416-505-4901

HOW MUCH DOES A REAL ESTATE CLOSING COST?

The most common question I get from prospective home buyers or sellers is how much does a real estate lawyer charge.

REAL ESTATE LEGAL FEES

For the most part, real estate lawyers will charge a base flat fee for a closing. However, on top of that there will be various charges.

Most lawyers will charge an additional fee for registering your mortgage.

REAL ESTATE DISBURSEMENTS

Here is where things can a bit tricky. If you are purchasing a home you will require:

All of the above can be subject to change. Some real estate law firms will use a conveyancer who performs the title search. That means this is a disbursement and will be added to your bill.

I have talked about title insurance in previous posts. Most lawyers will not close a deal until title insurance has been purchased.

The Land Transfer Tax is also something that must be paid to the government and is based on the home you have purchased including the city and any other special circumstances.

Registration fees are what lawyers have to pay when using special software to close the deal.

Finally, photocopying costs, certifying cheques, courier charges are all charges that a real estate lawyer incurs as a result of your closing.

SO WHAT’S THE REAL COST OF A REAL ESTATE CLOSING?

Again it really depends since this involves a bit of homework as the consumer. However, in most situations you will want to determine the base price for the closing, along with the mortgage registration and then the disbursements.

REAL ESTATE LAWYER NEAR ME

I am a real estate lawyer in Burlington, Oakville, Milton and Hamilton.

My address is 901 Guelph Line, Burlington.

You can also call or text at 416-505-4901

WHAT IS A TITLE SEARCH?

There isn’t any real estate lawyer in Ontario that won’t close a on a home without performing a title search. A title search is performed by the real estate lawyer or a conveyancer who specializes in the area.

Essentially, a title search will be ensuring that the property is free from any liens, that the vendor (seller) actually owns the property. That there are no legal issues affecting the vendors ownership and usage of the property. A title search will ensure that the vendor’s purchase from any previous seller was legally compliant.

A title search also reveals what rights the local municipality may have with respect to your property or utility companies. For example, local municipalities have certain access rights to ensure drainage. A title search also reveals whether or not the property and the land it is situated on and its adjacent land and or lots are in legal compliance with the Planning Act of Ontario.

The above is just some of the issues a title search can reveal.

CAN I OPT TO NOT HAVE ONE?

There are some clients who seem to think they shouldn’t bother with a title search. Generally, a real estate lawyer in Ontario will not close on a property until they have performed a title search. The cost is quite nominal and well worth it.

WHY DOES IT MATTER IF WE HAVE TITLE INSURANCE?

Even though title insurance is meant to cover any defects that may arise. It is still very important to perform a title search. It may reveal serious defects to title that may cause for your clients to decide they don’t want the hassle associated with the property. Serious defects may also jeopardize title insurance. In these instances its not that the title insurance won’t cover the defect its that it could stall the process of submitting a claim.

IS THERE A REAL ESTATE LAWYER NEAR ME?

If you are buying a home or selling contact our office to speak with a real estate lawyer in Burlington.
I provide legal services in Burlington, Milton, Hamilton and Oakville.

My address is 901 Guelph Line, Burlington.
You can also call or text at 416-505-4901

OAKVILLE REAL ESTATE NEWS for June 2018

OAKVILLE REAL ESTATE NEWS

Both Burlington and Oakville continue to be popular cities for homebuyers. In my previous post I discussed the market trends for the Burlington Real Estate market.

In this post I discuss the real estate market in Oakville.

COST OF HOMES IN OAKVILLE

For the month of June 2018 it was reported that the average cost of a home in Oakville was 1.1 million. The prices of detached homes have remained the same for the last three months with the exception of a one bedroom detached.

For example, a one bedroom detached in June 2018 were sold on average for 1.2 million whereas, three months ago they were at 1.3. million.

Interestingly, the prices of two bedroom and up to four bedroom for detached homes remained the same from three months ago. The price of a five bedroom detached home jumped to 2 million from 1.5 million a few months ago.

While Oakville continues to remain a hotspot the stagnation of prices may be attributed to the high cost of homes in Oakville.

OAKVILLE IS A POPULAR PLACE

Oakville remains a popular destination because of its affluent neighbourhoods, professional middle class population and trendy lifestyle. Moreover, a significant part of Oakville continues to work in downtown Toronto and the Go Transit makes it very easy.

The information above was retrieved from the following website: https://www.zolo.ca/oakville-real-estate/trends

If you’re looking for a Burlington Real Estate Lawyer or an Oakville Real Estate Lawyer call my office today.

IS THERE A REAL ESTATE LAWYER NEAR ME?

If you are buying a home or selling contact our office to speak with a real estate lawyer in Burlington.
I provide legal services in Burlington, Milton, Hamilton and Oakville.

My address is 901 Guelph Line, Burlington.
You can also call or text at 416-505-4901

Phone Number:	416-505-4901
Email:	ray@rehankhalil.com
Address:	901 Guelph Line, Burlington, ON