September 21, 2013
Most of us do not buy & sell homes frequently, so the legal process is not usually a familiar one & can appear complicated. This overview is meant to be a brief description of the normal process of buying a home - please REMEMBER that every situation & transaction is unique & REQUIRES THE ADVICE OF A LEGAL PROFESSIONAL.
Removal of subjects
The contract of purchase and sale
An offer to purchase real estate must be in writing & is generally written by the Buyer's Realtor on a standard form "Contract of Purchase and Sale" which contains all the standard terms & conditions, as well as places for the specific details of this offer.
The offer will have an expiration time & date. Unless rescinded, the offer is binding as it is written. The offer contract must be signed by the Buyer.
Aside from the offer price, the contract will also specify the list of inclusions & exclusions, the amount of deposit, a list of subject conditions, closing date & possession date.
The seller will either accept or counter the offer. When an offer is countered, it forms a commitment by the signing party; when both parties indicate acceptance of all terms, the document is a binding contract.
Following acceptance, the Buyer need to remove subjects in order for the sale to be "firm".
Conveyancing is the process of transferring title of the property from the Seller to the Buyer.
Usually, the Buyer & the Seller use the services of lawyers for the conveyancing. Before "closing" the Buyer transfers the balance of the money required for the purchase to their lawyer, in trust. The lawyer holds the money, confirms true ownership of the property, calculate the exact amount of money that must change hands, files paperwork with the Registry, then releases the cash to the Sellers after the Title has been registered in the Buyer's name.