Our office’s role in a real estate deal is to complete the transaction and to make it as simple and straightforward for the client as possible. This is done by understanding the law and being familiar with the items and issues particular to an area or municipality. Often, in a refinance, we will also be retained by your mortgage lender. Our office will clarify and confirm all the terms of the mortgage, such as interest rate and prepayment penalties, and will document your agreement with the lender and register that agreement in the land title office.
Investigating the Deal
As your real estate lawyer, I will ensure to your mortgage company that the title to your house has a ‘clear and marketable’ title. This means making sure there are no tax liens, builder’s liens or even litigation liens filed in the process of a divorce. Our office makes sure there are no worrisome items on title such as notice of a ‘grow op’ and as your lawyer I will also confirm that you have the authority to mortgage the property.
Prepare Legal Documents and Register in the Land Title Office
Our staff and lawyer will draft all the documents needed to place the new mortgage on and discharge the old mortgage off the property and will attend to registering the mortgage in the land title office.
Work the Numbers
In addition to the refinancing costs, there are many other costs that must be adjusted; for example utilities, property taxes, mortgages, mortgage broker’s commissions, debts owing, and fees charged by municipalities, strata corporations and the land title office. Once all of these numbers are balanced out, our office will tell you the final dollar figure that you will be taking away from your refinancing.
Move the Deal Along
Residential real estate deals in Ontario are able to complete quickly because of lawyers’ undertakings. A lawyer’s undertaking is a solemn promise provided by one lawyer to another, and regulated by the Law Society. The deal can close only because the lawyers exchange undertakings to follow through with all necessary steps to register the new mortgage. Some of these steps will happen months after the deal closes.
Explain and Advise
When you refinance a house there are a lot of ‘moving parts’. Your real estate lawyer is there to guide you through the legal process and help you navigate the transaction with ease.
In preparation for the closing of your refinance transaction, we will do the following:
• Prepare usual documents for the closing of the transaction
• Obtain sub-search of title
• Request, Obtain and Review payout figures of any outstanding amounts on any mortgage(s) and arrange for payment of these from refinance proceeds
• Arrange title insurance, if applicable
• Payment of our legal fees and disbursements from refinance proceeds, or obtain and process cheque from client
• Meet with you for final signatures at one of our three conveniently located offices
• Balance of refinance proceeds will be given to you directly or deposited into your bank account (you must provide us with a VOID cheque for this service)
• A final reporting letter will be given to you at the final appointment
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