Real estate comes with a lot of moving parts. With so many players involved in the process of buying a home, keeping everyone’s role straight can be a little challenging. However, by educating yourself on what each professional does and how they can each help you on your home-buying journey, you can make sure that you get the best experience possible. In this article, we’ll answer the question, What does a real estate lawyer do?
While it’s fairly common knowledge that employing a real estate agent to help you find your dream home can make the process run much smoother, it is less understood how a real estate lawyer can benefit you.
Hiring a real estate lawyer in Canada is required to close the deal on a home, assisting both buyers and sellers in the real estate market by ushering them through the legal process and providing counsel.
What is a Real Estate Lawyer?
A real estate lawyer is there to review all the legal documents related to the home-buying or selling process. The lawyer will thoroughly analyze the Agreement of Purchase and Sale, ensure the property taxes are up-to-date and make sure there are no liens registered or on file against the property in question.
Simply put, the real estate lawyer’s job is to ensure that there won’t be any legal issues during or after the transaction is completed.
Help for Homebuyers
Reviewing Contracts and Offers
Real estate contracts are full of dense legal language that’s easy to miss. Lawyers go through every line, flag issues, and explain what it all means in simple terms. They can remove or revise clauses that might work against you, like unclear penalties or vague timelines. Ask your lawyer to highlight any non-standard clauses that shift risk or costs to you. These often get overlooked.
Title Checks and Legal Ownership
A lawyer checks for liens, unpaid taxes or anything else that could affect your ownership. In older areas, rights of way may exist without formal registration. Title insurance can help, but only with the right coverage. Some policies may not cover issues like post-closing fraud or zoning violations, especially if they were known or undocumented at the time of purchase. Ask your lawyer to compare options and review any exclusions. If you’re wondering, “What do real estate lawyers do?” they catch legal gaps before they become costly problems.
Condo Document Review
Your lawyer will review the reserve fund, bylaws and board meeting minutes to spot any financial or legal red flags. A strong reserve fund on paper isn’t always enough. Some buildings underfund future repairs or delay essential upgrades. Your lawyer can also look for upcoming special assessments, legal disputes or bylaw changes that might affect your costs or lifestyle as an owner.
Mortgage and Tax Coordination
Lawyers handle land transfer taxes, apply credits and register your mortgage. They’ll also manage changes to the title if you’re adding a spouse later. In some provinces, post-closing title changes may trigger unexpected tax consequences if not timed properly. This is part of what do real estate lawyers do to protect your financing and tax position.
Tenant Considerations When Buying a Rental Property
Tenant rights don’t end just because a property changes hands. Your lawyer will review existing leases, confirm the status of deposits and make sure any required notices are issued correctly. In provinces such as Ontario or BC, tenant protections may automatically extend during and after a sale, which can limit your ability to evict or adjust lease terms. Overlooking these legal requirements can lead to delays or disputes, depending on local tenancy laws.
Handling Issues Before Closing
Inspections can reveal surprises from structural issues to unpermitted work that affect the value or timing of a deal. If problems come up or the seller delays, your lawyer may be able to enforce the contract, request repairs or adjust closing terms, depending on what’s outlined in the agreement. They’ll also explain your legal options if the deal starts to unravel. What do real estate lawyers do? They manage last-minute risks so your deal stays on track.
Guidance for Home Sellers
Preparing the Sale Contract
Your lawyer reviews the offer, adds legal protections and manages the paperwork from the start. What does a real estate lawyer do for the seller? They make sure your contracts are legally sound and built to prevent future disputes. Getting a legal review before you list the property can help catch issues early, like missing disclosures, unclear property descriptions or incomplete title records. A lawyer can also advise you on how to handle multiple offers, counteroffers or conditional terms without exposing yourself to legal risk.
Clearing Title and Mortgage Discharge
A lawyer will take care of clearing up any title issues and making sure the mortgage is properly discharged. Problems like old liens, unpaid taxes or missing signatures from past owners can pop up and throw things off track. In some cases, fixing a title issue means tracking down people or going through legal steps that take time, so the earlier it’s caught, the better.
Managing Renovation Permits or Legal Gaps
Upgrades or repairs? Your lawyer will ensure that all necessary permits are on file and properly documented. If you did any DIY work, they can advise how and what to disclose to avoid legal issues later. Missing or incorrect permit records can raise red flags during a buyer’s due diligence, lead to price reductions or even stall the sale.
Handling Tenants During a Sale
Your lawyer handles lease reviews, notice requirements and the proper transfer of deposits. Some provinces require specific notice periods or give tenants the right to remain under existing lease terms, even after ownership changes. Making sure these steps are done properly is part of what a real estate lawyer does for the seller, helping you avoid legal setbacks during or after the sale.
Responding to Buyer Delays or Financing Failure
If the buyer backs out or stalls, your lawyer steps in to enforce the agreement or negotiate compensation. Depending on the terms of your contract, they can help you keep the deposit or pursue additional losses tied to delays or failed closing. This might include covering carrying costs, price reductions from relisting or even lost opportunities from other buyers.
Closing Day Prep and Fund Transfers
From fund transfers to filing final documents, your lawyer coordinates every legal step to make sure the transaction closes smoothly. This includes verifying that mortgage discharges are processed, property tax adjustments are accurate and legal ownership is properly transferred. What does a real estate lawyer do for the seller? They ensure nothing is left undone when you hand over the keys, avoiding last-minute issues that could delay closing or create post-sale liability.
The Benefits of Working with a Pro
Buying a home is one of the most exciting times of your life; however, it is also one of the more stressful things you will do as the financial implications involved are huge, and it is one of the most significant purchases you’ll make in your life. With so much at stake, it makes sense that having a lawyer’s support is required. While there is a cost associated with hiring a real estate lawyer, the benefits outweigh the bill.
Working with a real estate lawyer will protect both the buyer and seller throughout the entire process. It also eases your legal responsibilities should something go awry.
An experienced, knowledgeable real estate lawyer is also familiar and up-to-date with the local real estate laws and regulations. This is particularly important if you buy a property in a foreign country where you either don’t speak the language or aren’t familiar with local laws.
While hiring a real estate agent isn’t mandatory, many people don’t think twice about it when they enter the real estate market. However, leveraging a real estate lawyer allows you to get the most out of your transaction and adds legal protection from start to finish. A real estate lawyer both smooths out the buying/selling process for you by removing additional legal stress, and they help protect you throughout your time in the real estate market.
