By: Jayson Schwarz LLM &
Claude Boiron (Royal LePage Terrequity Realty)
Realtor’s perspective:
Claude: Many realtors feel as though their job is finished when they send over a firm Agreement of Purchase and Sale document to a Real Estate lawyer. After all, the realtor has been at work for several weeks, and maybe many months, sending Listings to his client, taking his client to visit properties, perhaps writing a few offers and attending offer presentations, but never managing to buy a property. Now, finally, the stars aligned for his client to like a property, find enough middle ground negotiating with a seller to arrive at a mutually acceptable deal, and waive any conditions in the deal such as inspection or financing. Surely the realtor has earned the right to lean back, kick up his feet, and just count the days until he gets paid, right?
Not exactly. Not only are there so many things which can still go wrong with the deal (which could mean that the realtor won’t get paid), but his client doesn’t buy or sell Real Estate every day, and every step is likely new or confusing. Here are a few examples of what could go wrong:
- There are problems with financing
- There are problems with the title of the property
- The Real Estate lawyers on either side of the transaction butt heads
- The buyer has simultaneously sold her house, and the buyer of her house is delaying or reneging on the deal, so she won’t have the funds available to close on the purchase of her new home
Lawyer’s perspective:
Jayson: When we work hand and glove with a professional and experienced realtor it makes everyone’s life easier. Not all lawyers or realtors are created equal, so for the realtor, having an experienced lawyer, helps to ensure the deal will close and for the lawyer having a knowledgeable realtor, often makes the difference in timely completion and cost. Most of the time the lawyer receives a deal that has been negotiated without his input and sometimes that can lead to surprises. The ideal situation is to have a realtor and lawyer who communicate regularly, as needed, while a deal is being negotiated, as this provides the best protection for the client and generally leads to happy endings.
When a realtor and lawyer are on the same page, they appear more professional in the eyes of the client. For example, it looks pretty bad when a closing is supposed to occur, the realtor calls his client to congratulate her on the purchase of the property, and the client is the one to inform the realtor that the closing was delayed for three days. If your lawyer discovers that a boundary issue was missed in the Offer then the realtor looks bad. Much better for the lawyer and realtor to understand the need to keep each other apprised of everything so there are no surprises and nothing is missed.
Together: Over the years we have found that when the realtor and the lawyer act as part of a team, the client receives service beyond the norm and everyone wins. For the lawyer there is the chance to become the client’s family lawyer, the same as the client has a family doctor. The lawyer may provide estate or other advice and generally be there to guide and advise the client in the future. The realtor will have the opportunity to encourage depth of relationship and become a significant real estate advisor for the client’s home, cottage, business and investment portfolio. The client will be able to obtain advice in a fashion not otherwise obtainable and has the comfort of the trust in and availability, of these professionals.
Jayson: As you move forward to purchase or sell your new home find a team to work with. If they do not regularly work together, introduce them and ask them to assist each other and work as a team on your transaction. When a real estate lawyer and a realtor work together . . . great things happen!!!!!!!!!!!
Claude Boiron is a senior real estate broker and Instructor at U of T (https://ca.linkedin.com/in/claudeboiron)
Jayson Schwarz LLM is an experienced real estate lawyer and senior partner at Schwarz Law LLP