Real Estate Law 101 – Agreement of Purchase and Sale
Question: Should I get a lawyer to review my Agreement of Purchase and Sale before signing it?
KL: Yes. There are often clauses in the agreement that may cost you money such as a Request for a Survey of your property may cost you about $800 to obtain. This blog alone cannot identify all pitfalls which is why you should have a lawyer review it.
Question: What do I do after I have signed the Agreement of Purchase and Sale, does the real estate agent deal with contacting my lawyer?
KL: If you have a lawyer, in most circumstances, yes. If you have not selected a lawyer, now is the time to find one.
Question: When purchasing a new home from a builder, what does it mean to cap the adjustments?
KL: With the purchase of a new home, there are a lot of separate individual adjustments that occur on closing such as the builder’s levies, education levies, setting up water meters, gas meters, etc. All of these items can add up to thousands of dollars and at times over 10,000. When you cap the adjustments, the builder is limited to charging you what that cap is. For example, if it’s capped at $5000, you know you won’t pay more than $5000. This is another reason why you should have a lawyer review your APS before you sign it. When you’re buying a property, new or old, you can generally request 5 days to have a lawyer review and advise you regarding the APS (Agreement of Purchase and Sale) and additional costs in the agreement which may factor into your decision whether to purchase the property or not. There is generally a fee for a lawyer to review your APS.