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| Buying or selling a house involves one legal step after another, some of which you may not have thought of. From your initial dealings with the real estate agent through to your involvement with the movers, you should be aware of the various legalities. As the saying goes, "knowledge is power" and the more you know about all the different facets of buying and selling a house the less apt you are to run into problems.
The following provides an overview of some of the more common as well as most important aspects of buying and selling a house. Real Estate Agents Like most vendors, your first stop will probably be to see a real estate agent. When working with a real estate agent you will be asked to sign a contract called a listing agreement. This agreement gives the agent an exclusive listing for a fixed period of time and spells out the terms on which you are willing to sell. It also includes the amount of the agent’s commission and a 60 or 90-day extension clause, the purpose of which is to prevent a vendor and potential buyer from bypassing the realtor to avoid the commission. If you are a purchaser you should remember that although a realtor will probably help you find your new home, he/she is the vendor’s agent and will receive a commission from the vendor. Agreement of Purchase and Sale Once you have found the house of your dreams, you will enter into an agreement of purchase and sale. Unfortunately, many people tend to forget that they are signing a contract. Once you sign the agreement, you have to live with it, including any less than favourable terms. Therefore, it is a good idea to have your lawyer review it before you sign. Surveys The vendor is not legally required to provide the purchaser with an up-to-date survey unless it is part of the agreement of purchase and sale. Therefore you should review the agreement carefully to see what your obligations are in this respect. Paperwork There is lots of paperwork involved in the purchase of a house, including the deed, the proper description of the land, the mortgages, the affidavits of residence and the affidavits for the land transfer tax. And of course just about everything has to be done in triplicate. It is also important that all the documents are filled out correctly and that they are registered in a timely fashion and in the correct order. Movers Once you finally have the keys to your new home, you can give the movers the go-ahead. Remember that your dealings with the movers are governed by a contract. In all likelihood it is a standard contract that all their customers sign. Be sure and look it over carefully and ask questions. Make certain you understand who is liable for what. For instance if something is broken en route to your new home, who will be responsible? Never assume it will be the movers. Although there is a lot to do and remember whether you are buying or selling, if you take it one step at a time and get help from professionals, your move should go smoothly. |
| THE LAW & YOUR PROPERTY - RESIDENTIAL REAL ESTATE |
| The Legal Aspects of Buying & Selling a Home |
| The Law & You offers general comments on legal matters of concern to business and individuals. The articles are not intendend to provide legal advice or opinions. Readers should seek professional legal advice on the particular legal issues which concern them.
©2006 Kimberly Walsh, Cornwall, Ontario, Canada |