Common Mistakes Your Real Estate Lawyer Can Help You Avoid

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Buying or selling a home looks simple on paper.

Sign a few forms, transfer funds, get the keys. In practice, small errors can cost thousands, delay closing, or even kill the deal. A seasoned real estate lawyer spots these traps long before they spring. Here are the mistakes they prevent every day, and why you want one on your side.

1. Overlooking Title Issues

Hidden liens, undisclosed easements, and boundary disputes lurk behind clean-looking titles. When those flaws surface after closing, the buyer inherits the headache. A real estate lawyer orders a full title search, reviews every registration, and demands that problems be cleared or insured before you take possession. That step alone can save you from costly litigation years down the road.

Example:
Emily bought a semi-detached home in Mississauga. Months later, a contractor filed a construction lien from work done for the previous owner. Because her lawyer had secured title insurance, the policy covered the lien and legal fees. Emily paid nothing out of pocket.

2. Missing Critical Deadlines

Agreement of Purchase and Sale deadlines are unforgiving. Financing approval, insurance confirmation, status certificate review—each has a clock. Miss one, and the other party can walk or impose penalties. Real estate lawyers track these dates, send reminders, and file waivers on time, keeping the deal alive.

Example:
A condo buyer failed to review the status certificate within the allotted three days. The seller threatened to cancel. The lawyer negotiated a 24-hour extension, coordinated the review overnight, and filed the waiver the next morning. Closing stayed on track.

3. Skipping or Rushing the Status Certificate

Condo buyers often treat the status certificate as a formality. It’s not. The document reveals reserve-fund health, pending special assessments, insurance coverage, and litigation. Lawyers read the fine print, flag red flags, and renegotiate if needed.

Example:
A status certificate showed a $25,000 per-unit elevator assessment due after closing. The lawyer pushed the seller to reduce the purchase price by that amount. The buyer avoided a surprise bill and closed with confidence.

4. Accepting Seller Conditions at Face Value

Sellers may promise to repair a roof or leave appliances “as is.” Vague wording creates loopholes. Real estate lawyers draft precise clauses: scope of work, completion dates, holdbacks. If the seller doesn’t perform, funds remain in trust until they do.

Example:
A seller agreed to replace a cracked driveway. The lawyer inserted a $5,000 holdback clause. When the work ran late, the buyer’s lawyer retained the funds and hired a paving crew post-closing. No arguments. No extra cost to the buyer.

5. Ignoring Tax Implications

Land transfer tax, HST on new builds, and capital-gains tax on investment properties affect final numbers. A lawyer calculates these costs upfront and advises on available rebates. Surprises shrink; budgets stay intact.

Example:
First-time buyers in Toronto often overlook the provincial and municipal land-transfer-tax rebates worth up to $8,475. A diligent lawyer files the rebate at closing, lowering cash needed on day one.

6. Mismanaging Power of Attorney or Estate Sales

Transactions involving powers of attorney or estates carry extra legal steps. Missing affidavits or probate documents stalls registration. Lawyers verify authority, draft necessary declarations, and liaise with the land registry to prevent eleventh-hour delays.

Example:
An executor sold a family cottage but lacked a court-sealed certificate of appointment. The lawyer expedited the application, secured the certificate, and closed two weeks later—avoiding breach-of-contract penalties.

7. Overpaying or Under-collecting Adjustments

Property taxes, condo fees, and utility prepayments must be prorated. DIY math often misses mid-year tax hikes or special levies. Lawyers calculate exact adjustments, attach a statement to the closing documents, and ensure the correct amount changes hands.

Example:
A rural property had prepaid property taxes through June. The buyer’s lawyer adjusted the statement by $1,132, reducing funds the buyer had to bring on closing day.

FAQs

Do I really need a lawyer if my real estate agent is experienced?
Yes. Agents negotiate the deal; lawyers protect it legally. Each covers different risks.

Can a lawyer delay closing?
Only for a valid legal reason—missing documents, unresolved title issues, or unpaid liens. Their goal is to prevent worse delays later.

How early should I hire a real estate lawyer?
As soon as you have an accepted offer. Early engagement gives them time to review conditions, order searches, and advise before deadlines hit.

Will a lawyer attend closing in person?
Many use secure digital signing and virtual meetings. Funds and keys still exchange through trust accounts and couriers.

What does a real estate lawyer cost?
Fees vary by region and complexity. In Ontario, budget $1,000–$1,800 plus disbursements. Ask for an itemized quote upfront.

For a deeper look at what real estate lawyers do, plus pricing, process, and more FAQs—visit our page.

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Important note: This article is not Legal Advice. No one should act, or refrain from acting, based solely upon the materials provided on this website, any hypertext links or other general information without first seeking appropriate legal or other professional advice.

Unlock Your Seamless Closing Experience

Your Journey to a Worry-Free Closing Starts Here!