Real estate lawyers and legal fees

I'm sure many people have asked themselves, “What do real estate lawyers do to earn their legal fees?” The answer to that question is, quite a lot! Many people also ask, “Do I need a lawyer”? The answer is, yes!

There are many “moving parts” in a new home or condominium purchase. The lawyer’s job is to protect and manage the buyer’s rights and obligations under the purchase and sale contract, and to look after the mortgage lender’s interests, too.

In every purchase transaction and included in your legal fees, the buyer’s lawyer must:

1. Review the purchase and sale contract to identify and clarify any terms out of the ordinary;
2. Review the title to the property to ensure any potential problems can be worked out before closing, such as builder’s liens or caveats;
3. Communicate with the buyers and their mortgage lender to ensure all parties are “on the same page” and that all funding requirements have been met;
4. Calculate the figures for closing, including accounting for the deposit, taxes, condo fees and any other relevant numbers, like special assessments or hold backs for property damage;
5. Prepare the transfer documents required under the contract;
6. Prepare all of the mortgage lender’s documents;
7. Ensure the buyer’s and mortgage lender’s rights and obligations have been taken care of, which may involve negotiating with the seller’s lawyer;
8. Meet with the buyers to explain the process and to have all of the documents signed;
9. Ensure the mortgage lender will fund on time for closing;
10. Prepare the transfer documents for submission to the Land Titles Office;
11. Prepare the final accounting statements;
12. Prepare and send the final reporting to the buyers; and
13. Prepare and send the final reporting to the buyer’s mortgage lender.

The majority of lawyers in Calgary charge buyers a flat fee to complete a purchase transaction. However, buyers must be careful to determine whether the flat fee includes:

• Land Titles registration fees: These are calculated according to a formula set by the Government of Alberta, and vary with the value of the property being bought. The Land Titles registration fees are the same, no matter which lawyer the buyer chooses to work with (and, thankfully, there are no land transfer taxes in Alberta, like in British Columbia or Ontario).
• Disbursements: These may include: file administration and opening costs, photocopying, deliveries and couriers, and faxing.
• Title insurance, like the Land Titles registration fees, title insurance costs will vary according to the type and value of the property being purchased, and
• Good and Services Tax

Buyers’ lawyers have to engage in the same tasks for each purchase, but the legal fees, level of service and expertise will vary greatly from lawyer to lawyer. Understanding the lawyer’s job, the costs involved, and what is included in those costs will help ease the stress – and up the enjoyment – of a home or condominium purchase.