These stages take place before the agreement is signed, after the agreement is signed, just before the transaction closes, on the closing day, and after the transaction closes. What follows is a partial summary of some of the services performed in a typical real estate transaction. Each situation will vary according to the complexity and the nature of the transaction.

Before the Agreement Is Signed
• Discuss the contents of the offer to purchase with your lawyer. If there is a counter-offer from the vendor, make sure that you continue your communication with your lawyer before accepting the counter-offer, unless it is simply a matter of the purchase price.
• Discuss with your lawyer the ways in which you intend to finance your purchase.
• Confirm legal fees and out-of-pocket disbursement costs you will have to pay.
• Ask your lawyer about other costs related to purchasing the condo.
• Discuss matters such as your choice of closing date, inspection of the property before closing, and any requirements that you want the vendor to fulfill.

After the Agreement Is Signed
Once your lawyer has received a copy of the signed agreement, a thorough investigation is carried out to make sure the terms of the contract are complied with and you obtain clear title to the property without any problems. In other words, your lawyer will be going through a process of making sure that all your rights are protected and you are getting what you contracted for. The types of areas that a lawyer will check include the title of property .

Essentially, this is an agreement for purchase and sale normally states the vendor is going to provide title free and clear of all encumbrances. (Therefore, your lawyer has to make sure there are no claims or other filings against the property that could impair the title that you are purchasing.) When searching the title, it will show the name of the registered owner, the legal description, the list of charges registered against the property, and other documents that are filed against the property. For example, it will show such documents as the: mortgage; right to purchase; agreement for sale; restrictive covenant; builder’s lien (claim for money owing); easement, right of way; judgment; caveat (formal notice someone has an interest in the property and the nature of that interest; lis pendens (an action pending relating to the property, such as foreclosure proceedings); lease or sub-lease, or option to lease; condo project documents; and condominium bylaws.

Other documents a lawyer would review could include: survey certificate; property taxes; outstanding utility accounts, (for example, power); zoning bylaws; status of mortgages being assumed or discharged; ensuring financing will be sufficient and in place on closing; compliance with restrictions, warranties, conditions, and agreements; fixtures and chattels included in the purchase price; documents prepared by solicitor acting for seller (if applicable); survey certificate; property insurance; and review of mortgage.

Just Before Closing
Just prior to closing there are various steps that your lawyer will go through, including:
• Preparing documents relating to any sales tax for the chattels that you may be purchasing.
• Having you sign any mortgage documents necessary and making arrangements for funding to the lawyer’s trust account from the mortgage proceeds on filing.
• Preparing all documents for filing in the land registry office on the closing date; if a different lawyer is involved in preparing the mortgage, that has to be co-ordinated for concurrent registration.

On Closing Day
On the date of closing the transaction, your lawyer will:
• Check on the search of title of the property to make sure there are no last-minute claims or charges against the title.
• Release funds held in trust after receipt of mortgage proceeds from the lender if applicable, and sending an amount to the vendor’s lawyer based on the amount they are entitled to as outlined in the purchaser’s statement of adjustments.
• Receive a copy of the certificate of possession from the New Home Warranty Program, as applicable.
• Pay any monies required on the date of closing as outlined in the purchaser’s statement of adjustments—for example, sales tax on chattels being purchased, land transfer tax as applicable, and balance of commission owing to the real estate company, paid from the proceeds of the purchase funds due to the vendor—and as outlined in the purchaser’s statement of adjustments.

After Closing
Your lawyer will send you a reporting letter with all the key documentation for your records, such as a copy of the filed mortgage and property title transfer.

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.