Essential Knowledge Series
What’s With All of These Lawyer Fees?
“What’s the difference between a good lawyer and a bad lawyer? A bad lawyer might let a case drag on for several years. A good lawyer knows how to make it last even longer.”
Jokes Aside
A real estate mortgage transaction is a complex legal process that involves a significant amount of money and often involves multiple parties. It is essential to have a lawyer involved in the process to ensure that all legal requirements are met and to protect your interests. Here are some reasons why you need a lawyer to close a real estate mortgage transaction:
Legal expertise: A lawyer is trained in the law and thoroughly understands the legal requirements and processes involved in a real estate mortgage transaction. They can ensure that the transaction is conducted in compliance with the law and can provide valuable legal advice to help you make informed decisions.
Protecting your rights: A lawyer can help you understand your rights and responsibilities as a borrower or lender and can help you negotiate the terms of the mortgage agreement. They can also review the mortgage documents to ensure that they are fair and reasonable and protect your interests.
Risk management: A lawyer can help you identify and mitigate potential risks associated with the mortgage transaction. They can advise you on the potential risks of the property you are purchasing, such as zoning or environmental issues. They can help you protect yourself from these risks by using appropriate legal clauses in the mortgage agreement.
Negotiating better terms: A lawyer can help you negotiate better terms for the mortgage in private mortgage transactions, such as a lower interest rate or more favourable terms.
Closing the transaction: A lawyer can handle the legal aspects of closing the mortgage transaction, such as reviewing and preparing documents, conducting title searches, and ensuring that all necessary paperwork is completed and filed. The lawyer will also determine any additional costs, such as land transfer fees and will be aware of any rebates available.
Protecting your interests in the future: A lawyer can help you understand the long-term implications of the mortgage agreement and can advise you on how to protect your interests in the future. For example, they can help you negotiate the terms of a mortgage refinance or help you understand your options if you cannot make your mortgage payments.
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What Should I Expect to Pay For a Lawyer
Although every lawyer is different, you should expect to pay anywhere from $999-$1,500 for a mortgage transaction. Depending on the mortgage transaction, there will be additional costs associated with the mortgage transaction. These include retainer fees, discharge fees, title searches, land transfer fees, title insurance, etc. Some lawyers do not charge a retainer fee, and some do. It’s probably best to avoid lawyers who charge a retention fee for one-off transactions. The retainer fee is less of an issue if you want to use that lawyer’s services for other legal matters.
Where Should I Look to Hire a Lawyer?
If you're completing a mortgage transaction and need references to lawyers in your area, reach out to people who have gone through the mortgage process. You can also check online for lawyers with good reputations and reviews. Preferably, you should be working with a lawyer who deals in real estate. If you get a general lawyer or someone specializing in other aspects of the law, they might overlook essential real estate details that could save you money.
At Tried and True Mortgages, we have trusted lawyer referral partners in the greater Hamilton area. Reach out to one of our Tried and True Mortgages agents should you need a referral contact.
In summary, a lawyer can provide valuable legal expertise and protect your interests in a real estate mortgage transaction. They can help you understand your rights and responsibilities, identify and mitigate potential risks, negotiate better terms, and handle the legal aspects of closing the transaction. It’s vital to have a lawyer involved in the process to ensure that the transaction is conducted smoothly and in compliance with the law.
I'll leave you with this quote by Steven Wright, "I busted a mirror and got seven years bad luck, but my lawyer thinks he can get me five.”
Questions/Comments?
Give us a shout in the comment section or find our contact details on the main page of our website at www.triedandtruemortgages.ca
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