HOW DOES A NOTARY HELP YOU IN REAL ESTATE TRANSACTION?
A Notary is specifically trained in Land Title Act, Contract Law and Conveyancing Process to ascertain issues which can become a major headache for a Home Buyer in future. It is always a good idea to incorporate a Notary early in the home buying process. A Notary can identify the red flags in the home buying process before it is too late.
A realtor is expected to do due diligence and look after the interest of their respective clients however, many a times mistakes do happen, and it is the client who suffers in the end. A Notary can scrutinise the contract or the purchase agreement and spot issues which become binding on the homebuyer. Mostly, help of a Notary is sought only after the purchase agreement has become binding. Any recourse is expensive here on. At this stage a Notary can just help to transfer the funds, scrutinise the title and register the transfer.
Before an offer is made the subjects must be carefully drafted to ensure that a buyer is not forced into things such as expensive financing which may entail higher than prevailing interest rates on the mortgage or is obliged to take the private lender route. A Notary can help a home buyer at this stage itself and save thousands of dollars in the long run.
Most offers are conditional on the buyer getting financing, but what many homebuyers overlook is the importance of specifying that they need to get the financing they want, just stating subject to financing is not enough. A lender may offer financing, but with much higher interest rates than the buyer was looking for. A homebuyer must be specific at this stage. As a Buyer you can walk out if you cannot get the specified financing as stated in the contract.
While buying a Condo, all home buyers are not savvy enough to spot potentially large assessments which may be noticed by a Notary when hired to do due diligence early in the process. A buyer must exercise due care and study the Financial Statements of the Strata, dwell into last three to four years minutes of the AGM and study the Assessment/Depreciation done by the professional engineer hired by the Strata. A buyer must ensure that he/she is getting all what is there in the listing such as Storage Locker and Parking Stall (Limited Common Property). If the disclosure statement i.e. Form B does not conform to the listing, a buyer has the ammunition to negotiate the purchase price. Most new condo sale contracts are loaded heavily in favour of the Builder, as they are drafted by the builder’s lawyers. Many rebates offered in colorful brochures are misleading and need to be read in between the lines. A Notary can help the buyer to understand the legalese and the Final Disclosure Statement before the contract becomes binding for the home buyer.