real estate lawyer oakville | 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

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

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