Legal Resource Guide

2012

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neighbour's fence is a foot and a half on their property. So you're not really getting the land that you paid for but what you see is what you get." She advises that if possible, get a survey in advance; the agent should request a survey in the offer. But she warns if the previous owner doesn't have one, it's a time-consuming and expensive process. And, if it's a climate of multiple offers and time constraints, it might be best to decide whether "you are happy with what you're getting. If you walk in and you say, 'I love the house, the backyard is big enough, and I'm not going to put a pool in,' don't decide later that a foot and a half is an issue." Laredo says buyers need to be very specific about how the interior of the house should be left. "Make sure the offer says that, 'It's left clean, tidy, and in broom- swept condition,' and if there's a lot of garbage or junk or nobody's living there you should specify it be removed. People don't seem to understand what vacant possession means, because I've had clients tell me they've had to call a Laredo says it is smart to calculate the closing costs "MAKE SURE THE OFFER SAYS THAT, 'IT'S LEFT CLEAN, TIDY, AND IN BROOM-SWEPT CONDITION,' AND IF THERE'S A LOT OF GARBAGE OR JUNK OR NOBODY'S LIVING THERE YOU SHOULD SPECIFY IT BE REMOVED." junk removal company. Remember, once a deal is done, it's very difficult for me to try and get money for you." Laredo says buyers should specify what they're buying inside the house. "If you want the shades or the chandelier, or you want to make sure the dishwasher works, don't ask if the dishwasher works, go to the house and turn the dish- washer on." And she says it may seem simplistic but watch carefully what goes in the offer. "You should be savvy and try to be informed." Laredo says with respect to closing costs she has watched clients turn pale when they hear the number. Clients should speak with their mortgage broker to find out exactly what the net advance of funds will be, she says. "And you've also got the land transfer tax (double in Toronto), plus your disbursements, your title insurance," she says, adding closing costs could run you into thou- sands of dollars. well in advance, and not the day before closing. In fact, "it's better to find out before buying." Meanwhile, Jae-Yon Jung, principal of JYJ Law in Toronto, advises purchasers who have issues with financ- ing to make sure the money is going to come through because if they fail to close they "are ultimately on the hook," and the file could go on to litigation. "Even if you cannot come up with the money, you are ultimately held accountable." Jung warns people buying real estate "if you have issues with financing and you have to put in a clause say- ing 'By the fifth day I will have my financing in place,' make sure that's going to happen." She says that problems crop up when purchasers aren't sophisticated. "Most people go to first-tier lending institu- tions. But some, who have issues with credit, have to seek second-or third-tier lending companies," and for various reasons the loan falls through within the five days specified in the offer. Jung suggests that a solution is to be upfront and tell your lawyer that financing is an issue and they "should advise if that's the case let's make sure we have longer days for our financing clause. So, instead of five days, let's say 10 or 15 and if we don't get it by that number of days and financing is not in order, we're not going to close." At the end of the day, Laredo says the most important key to a smooth transaction is to have a good team around you: "It makes all the difference." FROM THE PUBLISHERS OF www.digital.canadianlawyermag.com/title/12393 19

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