[liquidsuite]

Hi guys hope you can help me with more advice regarding buying a house. I am currently waiting to here back from a mortgage specialist about my budget to buy a house. I just wanted to find out people experience of buying a first home?

I have been looking but not sure of the process. If I see a house a like and put my offer in and go from there. If I just forget about bank for now and just put my offer in and then after go through process of getting mortgage can I do that.

Also I hear some people hire a lawyer to close the deal and all the paperwork. What does the lawyer actually do and do I need to hire them also. I here they charge around $1500 for that services. If I do not need to hire them would be better but maybe I will need too i dont know.

Anyway any advice would be great thanks

[dbd33]

In Ontario you have to have a lawyer.

[Simon Legree]

You would be foolish not to use one. They will check for liens, clouds on title and other aspects which you may not be aware of and would find it difficult and time consuming to do yourself. If at a later time you run into problems related to title and so on the lawyer that you used will be liable not you. The legal fees are money well spent but by all means check around to see where you can get the best deal.

[JonboyE]

Originally Posted by liquidsuite Hi guys hope you can help me with more advice regarding buying a house. I am currently waiting to here back from a mortgage specialist about my budget to buy a house. I just wanted to find out people experience of buying a first home? I have been looking but not sure of the process. If I see a house a like and put my offer in and go from there. If I just forget about bank for now and just put my offer in and then after go through process of getting mortgage can I do that. Also I hear some people hire a lawyer to close the deal and all the paperwork. What does the lawyer actually do and do I need to hire them also. I here they charge around $1500 for that services. If I do not need to hire them would be better but maybe I will need too i dont know. Anyway any advice would be great thanks

In BC you can hire a lawyer or a notary. Expect north of $1,000 plus tax for a purchase including a mortgage. I like to think I am quite experienced in these matters (I am licensed to buy and sell commercial real estate) but I would not even consider trying to do this without a legal expert.

As someone who doesn't know much about buying and selling real estate in Canada you should also talk to a real estate agent and get them to represent you. They get paid out of the commission the seller pays so there is no out-of-pocket expense to you.

To be honest, as a novice, you would be a fool to proceed without them.

[Aviator]

You put in an offer and it is accepted, it is a legally binding contract. There are stiff penalties for breaching the contract. If you don't do it right you could get into all piles of grief.

[shelley748]

Originally Posted by liquidsuite Hi guys hope you can help me with more advice regarding buying a house. I am currently waiting to here back from a mortgage specialist about my budget to buy a house. I just wanted to find out people experience of buying a first home? I have been looking but not sure of the process. If I see a house a like and put my offer in and go from there. If I just forget about bank for now and just put my offer in and then after go through process of getting mortgage can I do that. Also I hear some people hire a lawyer to close the deal and all the paperwork. What does the lawyer actually do and do I need to hire them also. I here they charge around $1500 for that services. If I do not need to hire them would be better but maybe I will need too i dont know. Anyway any advice would be great thanks

You really do have to get a lawyer unless you are in Quebec in which case a notary.

If I read your post correctly you are getting a mortgage? Well the mortgage company will only release funds to a lawyer in trust anyways!

Buying a house here in Canada is not like buying one in the UK, its a done deal once the offer has been accepted and signed off all conditions.

[jericho]

I am not sure why someone new to the country, having never gone through a house purchase in Canada before, would even consider doing it without a lawyer.

It's the most expensive purchase you'll ever make and you're questing a thousand bucks or so? Madness.

[dbd33]

I think an error is being made in many of the posts above. A lawyer in a real estate transaction in Ontario does not act for the purchaser in the sense someone from the UK would assume. They do not check for liens, they do not check anything related to the survey, they do not warranty anything related to the purchase and sale. They just hold the funds during the transaction and report the transaction to the government. You need a lawyer but the lawyer does nothing at all for you. Don't think that paying the lawyer affords you any sort of protection related to the deal.

[DandNHill]

Originally Posted by dbd33 I think an error is being made in many of the posts above. A lawyer in a real estate transaction in Ontario does not act for the purchaser in the sense someone from the UK would assume. They do not check for liens, they do not check anything related to the survey, they do not warranty anything related to the purchase and sale. They just hold the funds during the transaction and report the transaction to the government. You need a lawyer but the lawyer does nothing at all for you. Don't think that paying the lawyer affords you any sort of protection related to the deal.

That makes sense. We're in the process of buying a house and the vendors were going to be using the same lawyer as us. When I questioned the conflict of interest I was told there was none!!???
To my relief they are not using the same one now irrespective of conflict!

[Tony-the-Tigger]

Originally Posted by dbd33 I think an error is being made in many of the posts above. A lawyer in a real estate transaction in Ontario does not act for the purchaser in the sense someone from the UK would assume. They do not check for liens, they do not check anything related to the survey, they do not warranty anything related to the purchase and sale. They just hold the funds during the transaction and report the transaction to the government. You need a lawyer but the lawyer does nothing at all for you. Don't think that paying the lawyer affords you any sort of protection related to the deal.

Who does these checks then?

[JonboyE]

Speaking for BC, the lawyer or notary checks for charges registered against the property, receives money from the buyer and bank, makes payments necessary to facilitate the transaction, makes payments to discharge existing mortgages and send the net proceeds to the sellers, and registers the buyer as the new owner.

However, the contract is made between the buyer and seller, usually with their real estate agent's help. The contract is normally made using the Real Estate Board's pre-printed forms, altered as necessary. Your lawyer is not involved with making the contract and is not responsible if it is a bad one.

[Auld Yin]

Originally Posted by Tony-the-Tigger Who does these checks then?

In Ontario, if a mortgage is involved (and that would be the majority of situations), the lawyer for the purchaser is required to issue a Letter of Opnion to the mortgagee stating that the mortgagee has a good and valid first charge on the property. This involves the lawyer doing title searches. Should the Letter of Opinion be subsequently shown to be wrong then the lawyer can be sued.

[Tony-the-Tigger]

Originally Posted by Auld Yin In Ontario, if a mortgage is involved (and that would be the majority of situations), the lawyer for the purchaser is required to issue a Letter of Opnion to the mortgagee stating that the mortgagee has a good and valid first charge on the property. This involves the lawyer doing title searches. Should the Letter of Opinion be subsequently shown to be wrong then the lawyer can be sued.

Thanks.

[dbd33]

Originally Posted by Tony-the-Tigger Who does these checks then?

No one, title insurance protects the purchaser in case things are not as they seem. At least it does in theory, I haven't tried claiming yet.

[Tony-the-Tigger]

Originally Posted by dbd33 No one, title insurance protects the purchaser in case things are not as they seem. At least it does in theory, I haven't tried claiming yet.

Title insurance? I've got some reading to do.