Whereas it is common for the purchaser’s lawyer to be paid a percentage of the purchase price, that is negotiable­—and you want to obtain a flat rate if you can. It is customary for the vendor’s lawyer, who will perform a wide range of services that vary depending on the circumstances, to be paid on an hourly basis for time actually expended. Some services performed at various stages are discussed below.

Before the Agreement Is Signed
Before you sign the agreement, you should have selected a lawyer to represent you, and discussed the contract with him to make sure you are protecting your interests and not incurring any additional expense or unnecessary frustration.

After the Agreement Is Signed
Once the deal has been reached in writing between the vendor and the purchaser, the vendor’s lawyer will request various documents from you (the vendor) to help complete the transaction. The type of material that you should obtain depends on the custom in your area and provincial jurisdiction. All the documents may not be easily obtained, but you should attempt to provide: real estate tax bills; hydro or other utility bills; a survey, if you have one available; if an existing tenancy is being assigned, details of the tenancy and any security deposits; any and all condo-related documents, such as project documents, bylaws, rules and regulations, estoppel certificate, and others that may be required; and the 24 months of minutes from the condominium council to owners. Prior to completion of the transaction, you should make arrange­-ments to notify the cable television and telephone companies that you want service disconnected from your address as of a certain date. Also, advise your insurance company to cancel the insurance policy on the day after the closing date.

Just Before Closing the Transaction
Your lawyer will prepare a deed or transfer document which you must sign before title can be passed to the purchaser. Your lawyer will also prepare the vendor’s and the purchaser’s statement of adjustments. In some provinces or regions, the custom is for the purchaser’s lawyer to prepare the conveyancing (property transfer) docu-ments for the vendor to sign and prepare the vendor’s and the purchaser’s statement of adjustments.

These would then be forwarded for review to the vendor’s solicitor and to the vendor before signing.

If a mortgage exists on your home, it is the responsibility of the vendor to discharge the mortgage in order that clear title to the property can be transferred. Your lawyer will obtain a copy of the mortgage statement showing the balance outstanding as of the closing date, and then “undertake” (legally promise) to the purchaser’s lawyer that the mortgage would be paid off first from the proceeds of the purchase.

If you are a non-resident of Canada, a withholding tax will be kept back from the sale proceeds and remitted to the Canada Revenue Agency.  This tax is remitted because a non-resident could be making a profit or capital gain on the sale of the property, and is required to pay tax on that property, but CRA could have difficulty collecting from someone who is a non-resident. This problem is eliminated by having funds paid directly from the sale proceeds to CRA, generally 25 per cent. Your lawyer will advise you and find out the amount of the withholding tax.

On Closing Day
On the date of closing, your lawyer’s agent will meet the purchaser’s lawyer’s agent at the land registry office in order that the transfer docu-ments can be filed, changing title.

After Closing the Transaction
After the transaction has been completed, and your lawyer has received the appropriate money based on the vendor’s statement of adjustments, he will clear off any existing mortgages with those funds and have the mortgages discharged from the title of the property. You would then receive the balance of funds after the legal fees and disbursements have been deducted.

Finally, your lawyer will send you a reporting letter setting out the services that were performed and enclose any appropriate documents for your files. 

Excerpted with modification, from 101 Streetsmart Condo Buying Tips for Canadians, by Douglas Gray, published by John Wiley & Sons in May, 2006. Copyright 2006 by Douglas Gray. All rights reserved. Any reproduction of this material without the author’s advance written consent is prohibited. The author assumes no responsibility whatsoever for any informa­tion provided above, as the purpose of the column is for general information only, and not intended to provide professional advice.