How to Work with Your Lawyer - Schwarz Law Partners LLP

By:Jayson Schwarz

This is so complicated I hope he helps

The new condominium agreement of purchase and sale (the “Offer”) is an intimidating document that requires the expertise of an experienced real estate lawyer familiar with condominium deals to review and assist you in protecting yourself and achieving your goals. In this article I will try to show how you should work with your lawyer from beginning to the completion of your condominium purchase.Once you have signed your deal S. 73(1) of the Condominium Act (the “Act”) provides that you have ten (10) days from the later of, the date you receive the disclosure statement and the date you receive an Offer executed by the Builder to rescind the deal. This gives you an opportunity to see your lawyer, get suggestions, changes, and explanations and then within the ten (10) days return to the sales office and negotiate for those important items that are usually left open. As a purchaser a common question that must be answered is what are you buying? Are you getting the parking space and locker as part of the purchase price and owning them or are they common elements with an exclusive use aspect. Your lawyer can answer that for you.

Your lawyer will explain to you that in most Offers the following are standard:

measurements of space are made from outside the outside walls and half way through the demising walls, so your condo square footage is not useable area but total area
the builder can substitute materials of equal or better quality
bulkheads can appear where you least expect them
layouts can vary
the builder can add units, take away units, rent units
you may end up with a reverse floor plan
colours, textures and materials may vary

Your lawyer will examine the adjustments section of the offer and review each adjustment and make suggestions as to what parts you should try to delete (i.e. law society levy and discharge fees) and those charges you need to cap (i.e. levies, go transit, development charges, connection charges).

Another important thing to remember is that the Offer is different from freehold because you have 2 closings. It works like this. The first closing is the occupancy closing date, the day you move in. Until the condominium is registered you are paying money to the Builder that does not reduce your principal on the mortgage. It is like rent and is a total of the interest on the outstanding balance of the purchase price plus your proportionate condominium common expenses and no, you can’t get around this. The second closing is the day that title is turned over to you. This is the date you pay the balance of the purchase price, own your condo, register your mortgage and live happily ever after. It may be anywhere from the same day as occupancy to a year or more later. You need your lawyer to review the Offer and let you know what the real fully extended occupancy date will be. It can vary up to to 2-3 years down the road and then you need to add the Tarion extension periods.

Your lawyer will need to keep an eye out for those tricky clauses that builder’s lawyers sometimes put in allowing for cancellation of the Offer based on the builders perception of “economic viability” . . . bad . . . make sure there is a measuring stick for this clause that is fair to both sides.

Another very important issue relates to your receiving some kind of explanation of what are the disclosure documents and how to read them. Remember that great big pile of documents you received when you signed the deal? The Act requires that the builder provide you with a number of documents in order that you can learn what is really going on with that new condominium before it is too late. They include the Disclosure Statement, and the documents that go with it being; a Budget Statement, a Proposed Declaration, the Proposed By-laws, a Proposed Insurance Trust Agreement, a Proposed Management Agreement, the Proposed Rules and the Proposed Condominium Plans. You need a condominium rela estate lawyer to explain how to read and understand these documents.

Ok you go back to the builder with your changes, get the amendments necessary and now you formerly retain the lawyer. This means get a contract in writing between you. This contract called a “Retainer” sets out what services the lawyer will provide; how much he costs and what is included in the fee agreed.

Now that you have hired your lawyer don’t forget about him. In other words he is not a mind reader so when the builder sends you letters (i.e. extending occupancy dates) copy your lawyer immediately. If you have questions about what is going on send your lawyer an email or a letter. This is much better then phoning as it allows your lawyer to give you a well thought answer to your question which you can keep to review at your leisure. One thing you need to remember is that lawyers sell time not tomatoes and as such if you ask to many questions or occupy too much time in accordance with that retainer you will be charged.

For the occupancy closing your lawyer will ensure all documents and funds are processed and assist you in a smooth transition to your possession. On final closing your lawyer will search the title, prepare all necessary documents, issue your title insurance policy, process and register your mortgage and handle all the details necessary for the closing of your deal, giving you ownership of your castle. The work your lawyer does at this time is critical to avoiding problems years down the road when you go to sell your condo. Again your choice of lawyer is important to ensure that everything is done properly and goes smoothly.

So to return the our title, find the right lawyer because, yes it is complicated, but it does not have to be horrible. A knowledgeable, competent, professional lawyer can make the process interesting, painless and easy. Good luck.

Good luck and Happy home hunting!!!!!!!!