What Is The Role Of A Lawyer When Buying A Condo?

January 18, 2015

The process of buying a condo tends to involve many legal issues. In fact, the vast majority of problems that stem from such purchase are on account of legal complications. However, the fact that you are not obligated to get a lawyer to buy a condo and the fact that some of them are very expensive means that many people tend to avoid them. If you intend to find Fort McMurray condos for sale and then buy them with minimal complications, getting professional legal services is highly advisable. There are some workarounds to avoid the complexity and cost of doing so, one of the best of which is by working with a realtor who has a top notch legal department.

A cost benefit analysis of using professional legal experts

When you buy a condo and have a lawyer handle the legal side of things, it will cost you a bit more than if you decided to handle the whole process yourself. However, there are potential problems that can arise from this. These include having to pay huge fines or other penalties as a result of overlooking legal details. There is also the potential to lose the house particularly if the legal ownership of the condo is disputed.

Given the risks that you face if there is a legal problem with the house, spending just a little bit more on a lawyer or other legal professional during the purchase process makes a lot of sense.

The importance of using a lawyer to draw up the brokerage agreement

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One of the critical phases in the process of buying a condo is signing the brokerage agreement. This is one of the major instruments that are used to transfer the property to the buyer, and are legally enforceable. When you buy a condo, chances are that the seller will use a generic agreement for this since they are easy to come by and are not difficult to edit.

However, the problem with signing such an agreement is that it might overlook many legal issues that could complicate the ownership process. For instance, if there are outstanding taxes and charges on the home, you might inadvertently acquire them by signing the brokerage agreement. Acquiring the new debt could strain your finances and even damage your credit score, meaning that even refinancing your mortgage might become difficult.

When you let a lawyer handle the purchase process, they will examine every legal detail and then draw up an agreement that will be specifically made for that particular property. They will also explain the implications of signing it before you do, so that you don’t do it blindly.

The role of the lawyer in the closing process

Another point at which the lawyer would be indispensable is in supervising the closing. This is the final part of the condo purchasing process, where the title and other documents are signed and the property is formally passed to the buyer. This can be a potentially complex process, and there are many cases where both the buyer and seller are confused about how to handle it. Some of the legal complications that can arise from it include failure to indicate that the funds were transferred to the seller, or noting an amount that is not correct. The signed documents might also turn out to have no legal standing in a court of law, which means that the ownership will not have been transferred even if the buyer had completed paying the mortgage for the property.

A lawyer experienced in handling real estate cases will oversee the process, ensuring that all the documents are legally signed and executed so that the closing has legal standing.

The role of the lawyer in dispute resolution

If you want to buy a condo for the first time, you might think of it as a normal purchase as you would in a store, where you simply find something you like and then buy it. However, there is a lot of negotiation that might need to be done before buying the house. This is necessary since buying a home is a long term commitment, and you want to get it done just right. The disputes that arise during the negotiation process can stall the entire negotiation, and might even force the seller to pull out of the deal. The presence of a lawyer to mediate between the involved parties can help ensure a more speedy resolution. They will also ensure that the agreements that you come to are legal.

Though it’s entirely possible to buy a condo without involving a lawyer, it will almost certainly turn out to be more problematic and expensive later on. Thus, if you plan to buy one of the many Fort McMurray condos for sale in the near future, you should therefore make it a priority to get high quality legal representation to guide you through the entire process.

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