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Buying Property

Common Real Estate Transaction Problems

With all the excitement of purchasing a home, it’s easy to overlook some of the important details within the transaction. That’s why a residential real estate lawyer in Toronto should be consulted when drafting the Agreement of Purchase and Sale. As it becomes a legally binding document once both parties have signed, it is crucial to ensure the details are clear and concise.

In addition, a real estate lawyer in Toronto can help you decipher the legal implications of when a real estate transaction goes wrong.

Below, we will now look at four common problems to be aware of with a real estate transaction.

Drafting Error in the Purchase Document

Errors can easily occur in the drafting of the Agreement of Purchase and Sale. Whether it is with the purchase price or closing date, having the details reflect the intentions of both parties can prevent a legal crisis. For the agreement to be legally rectified, new terms must be accepted and signed by the seller and the buyer. Make sure to have your real estate lawyer carefully read through your agreement.

Unable to Obtain Financing

Sometimes the excitement and desperation can lead buyers to sign the Agreement of Purchase and Sale without a safety net. In the housing market, time is of the essence, especially when potential buyer finds the house of their dreams. Many times, the asking price can be outside of their budget, but an offer is put in place and accepted by the seller.

Without monetary stability, the buyer can be left financially responsible for the sale. To add to the problem, if the seller is required to find another buyer just as the housing market dips, the original buyer may be on the hook for the difference in the loss.

Errors in the Executed Documents

In the midst of counteroffers and amendments, one party may be referred to as a different identity in name or even as the other invested party. Other errors can occur with the final agreement of purchase price, particularly when the initial selling price is amended several times. It is important to note any error in the executed documents does not justify a null and void situation.

Breaking Contracts

Regardless of possible errors, unstable financing, or a drafting error, breaking a contract can lead to either, or both, parties taking legal action. Litigation is possible if the buyer, or seller, changes their minds and stops the sales process.

The Agreement of Purchase and Sale protects all parties involved from miscommunication or defection. Without the proper agreement conditions, either party may be financially or legally bound to excessive costs.

Contact a Real Estate Lawyer in Toronto to Handle Your Real Estate Transaction

For the best real estate lawyer in Toronto, contact Zinati Kay – Real Estate Lawyers. For more than 25 years, we have been helping both home buyers and sellers have successful closing deals. Don’t leave yourself open to potential costs due to errors, unstable financing, or buyers’ regret with the breaking contracts. Call us today!

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