Avoiding Some Common Legal Mistakes When Selling Your Home
AVOIDING SOME COMMON LEGAL MISTAKES WHEN SELLING YOUR HOME
This blog is brought to you courtesy of www.lawyerselect.ca
You’re probably already well aware that the purchase or
sale of a home is one of the biggest, if not biggest, money transactions you’ll
make in your life. So it should come as no surprise that the process involves
several complicated legal issues. At first, the sheer number of these
legalities may have you feeling a little overwhelmed, but teaming up with the
right real estate lawyer will go a ways in simplifying and un-complicating the
process. At LawyerSelect.ca, we
specialize in connecting you with the right real estate lawyer for your matter.
We assess your needs, your means, as well as other factors, to ensure a smooth
lawyer-client relationship.
Below, we’ll review some of the most common legal processes
that are incorrectly done in the real estate transaction process. It’ll be of
utmost importance that you keep these processes in mind during the real estate
transaction.
Contractual
Mishaps
Contained within the purchase and sale agreement are a
number of clauses, which articulate the ownership as well as the rules of the
transaction. If these clauses are improperly worded, or lack the required
specificity, they may cause unforeseen problems for both the buyer and the seller.
For example, an ambiguous home inspection clause has been
known to cause an entire deal to fall through, thereby hurting the seller’s
ability to sell their home. From a buyer’s perspective, they should be weary of
vague home inspection clauses, as this may indicate some malicious motives on
the part of the seller. Thankfully, buyers can back out of the deal if they
receive feedback and complaints that are not addressed as binding within the
clause itself.
In an attempt to avoid such a result, your real estate
lawyer should word the clause in a careful enough manner, and should even
consider including an option for the seller to repair any issues that the buyer
may raise about the home. This has a two-pronged effect: firstly, it will
protect the seller from having the buyer back out of the deal last minute, and
secondly, it will also protect the buyer from having to carry the burden of the
repairs.
Premature
Cancellation of Home Insurance
All too often, homeowners are quick to cancel the
insurance on their home. You may not know this, but there are strict timeline
adherence requirements and legal consequences that may ensue if you do this.
Make sure to review this issue with your real estate lawyer, as they’re best
suited to advise you on when to take this action.
For Ontario residents, the law states that you’re
obligated to maintain your home insured (in your capacity as a seller) until
the real estate transaction is officially and finally completed. If you make
the mistake of cancelling your insurance in advance of the transaction’s completeness,
then under section 14 of the Ontario Real Estate Associate Agreement, the
homeowner stands to incur all the costs of damages to the home, should any
damages be suffered. You should keep in mind that closing dates change often
and for many reasons, like delayed mortgage approval or other such reasons; don’t
take the unnecessary risk of being uninsured by cancelling your policy
prematurely.
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