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What Do Lawyers Do | Lien| Charges| Encumbrances| Requisitions| Title Insurance - What do those mean - YouTube
Channel: unknown
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hi this is william chan right here your
gta realtor
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lien chargers encumbrances requisitions
title insurance what does that mean in
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terms of real estate transaction
and i'll have someone to tell you right
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now
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so we are so happy today we have invited
adeline
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huang a real estate lawyer to give us
a quick explanation thank you for
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inviting me william
you're welcome so just want to make sure
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this is not a legal advising the legal
counsel
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should you have any specific question
about your real estate transaction
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feel free to contact your own lawyer or
you can contact
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Adaline Huang at the information given
below
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thank you the first question we always
heard about when we finish
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a transition on the realtor side
is when does the lawyer
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contact the client or what do you guys
do
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when you first receive my documents
well first once we receive documents
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from either the realtor or the client
we always first take a look so there are
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a few things that we always
look for there's two very important
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dates that we look at
the first one is the requisition date
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and the second one is of course the
closing date
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right um after we take a look at the
documents find out what kind of property
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it is
right then of course we reach out to the
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clients we ask a few questions
to basically find out what the property
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is going to be used for
who's going to be on title what is the
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citizenship status
and marital status and also if they've
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ever owned any
property anywhere else in the world all
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these questions
feed into things like tax credits tax
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rebates
and essentially how we fill out the
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paperwork and forms when we prepare the
documents
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i understand so we heard about title
search
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and what is that and what do you do
in terms of title search
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of course so we do a lot of searches
before the requisition date
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so the reason why we do that is
essentially the requisition date is the
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date that both sides
decide that the purchaser has a chance
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to do all their searches to make sure
legal title is what we call clear
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we do title searches we do execution
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searches
we check for things like liens
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encumbrances
any easements rights right away just to
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make sure that
the seller has a clear title
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and is able to give the buyer what we
call clear title
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to the property on the day of closing.
Understand
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And you mentioned about lien encumbrances
right of way charges can you just give
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us a brief idea what do those mean
of course those are basically
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third-party interests
that makes it so that your title is what
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we call
clouded so let me give you an example
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the best way to explain it right
a construction lien, lets say the seller had
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done some construction before they did
some big renovations to the property
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yes but they didn't pay their
contractors yet so the contractors can
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do is they can go through the court process they can get a lien and put on
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the property
essentially you cannot sell the property
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until you pay me
oh that's an example and some more common
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examples might be
missing property tax to the city
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and there will be a lien on it
other encumbrances include maybe a
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walkway
it's not something that was agreed to
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put there by the city needed to put a pathway
to the gound
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right that might be an encumbrance or maybe the neighbor has
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their backyard patio and it lien on
to the property and it actually crosses
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the property line
that's the main concern so we check
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for a lot of these things before
of the requisition date and before the
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closing
i understand so for requisition date
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or
in your profession like is there any
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specific
period before the closing you want us to
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put the requisition date
like not too far from closing or
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something like that
so there's no legal standards so to
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speak there's a
law of regulation that stipulates that
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um
so the short answer is no but the
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realistic answer
is usually we ask for at least 15 days to a
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month before closing
that gives us enough time um usually
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searches are simple we do the search
online
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we go to the portal it comes up with the
results
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when we need the time is if there is an
issue and we need to do more
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investigation that's why we ask for at
least
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15 days or two weeks time before closing
so that we have that time to do some
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more investigation if there is
i understand so um the other thing will
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be uh
from the first like from the day of
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accepted offer of both parties till
closing
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do you have any regulation or legal requirement
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um sorry go ahead sure so there's no
regulations or laws in terms of when
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closing has to be
i can tell you from experience if it's a
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very simple sale
it's a cash deal no mortgages both sides
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agree on the price everyone's happy
i've seen deals closing three to four
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days wow
that's in the best case scenario right
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of course
yes but if you have a mortgage it has to
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do with the bank
if i need to wait for approval if i need
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to wait for instructions
that typically takes at the very minimum
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at least a week
so that's what we're looking at on the
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low end on the high end of course
we can have at least one time that is
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probably the best case scenario
uh if there's more time than that it is
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just all
depending on what the buyer is
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setting
no problem okay keep going and
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in a perfect scenario
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what is the best time to meet a client
like
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a week two days or
sure so once we get a client i
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try to at least reach out to them and
get them on the phone of course
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speak to them ask them the questions
right at least within a day or so
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right in terms of signing documents i
try to work with clients
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maybe meet with them at least i say
three to four days before
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right the only caveat to that is
mortgages right i've had mortgage
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instructions that weren't sent to me
until the day before
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wow that is so preparing things like the
statement of adjustments
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trust ledger how much if there's a
difference and the client has to provide
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a
certain amount of cash i can't tell them
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until i get the instructions
sometimes it does happen the day before
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ideally at least three to four days to a
week before i try to get the clients
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into the office meet them and sign
paperwork
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i understand so there's no point for a
client to go
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on like go to your office like right
after i send you the documents and then
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like
something well okay we we just signed a
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deal and then
what's a step but there's no point right
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you can always do that over the phone
exactly okay especially nowadays over
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the phone
zoom meeting or even through email a
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lot of times
all right so that can be done okay can
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you just tell us
a rough or a general idea on the legal
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cost
that you you will charge of course so
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like you said land transfer tax and
title insurance is not typically
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included in
legal costs right so you're looking at
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other disbursements like
registration fees right title search
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fees right
any kind of software access fees right
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and also
general banking charges printing courier
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fees
so those are very minimal right i would
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say the
probably the biggest number you'll see
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on a bill is
very likely lane transfer tax and then
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second will be
title insurance in terms of real estate
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purchasing
if Adaline can explain
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a little bit to us about what does that
mean by title
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insurance
absolutely so title insurance i can tell
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you is really important
right and it's been around for at least
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i think like 30
more years right basically back in the
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day when you have
lawyers the old lawyers and the
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bookcases behind them in the old offices
what they used to do
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is they get the land surveys right and
they will look at the land surveys to
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see
is there any easements are there any
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property line issues
and they'll do all the searches manually
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so they'll get all the title search
documents and they'll flip through it
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and read it
right so that's two problems one time
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consuming
right and two it costs a lot of money to
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have a lawyer sit down and read the
documents
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and of course because it's a person
reading the documents
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there's a lot of issues right sometimes
you read it wrong sometimes they miss
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something
right so what title insurance did was
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they stepped in and they said you know
what
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it's too expensive it doesn't make sense
we'll just insure the property
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so after the closing if the buyer
realizes
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oh there's actually an issue with title
um
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for example there was a lien that they
didn't find before or the lien
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was put on afterwards but it was right
the responsibility of the seller
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this again clouds their title to the
property
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what they do is they put a claim to the
title instruments the title insurance
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company
typically does an investigation and if
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it is
the seller's fault right they pay out
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the claim to the buyer
and they essentially take the claim on
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and they say don't worry buyer
we'll pay you out for the damages and
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then we will go after the seller
to make up for the cost of basically
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what they had to pay out
okay so typically right now we just all
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we
mentioned are transactions in a
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freehold
real estate and we also heard about
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status certificate
of course that will be in a condo
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related real estate transaction so what
do you look for in
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in legal profession in terms of status
certificate
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that's a really great question so the
status certificate
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is what we lawyers call the birthing
document of a condo
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so basically all the rules all the bylaw
the financial health of
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the condo will be included in the status
certificate right
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so on a legal sense what we look for are
things that
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are more concerning for our clients so
number one we look at financial health
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of course the reason for that is you
want to know if the condo
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is able to sustain itself and looking at
the financial health
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they usually give you a budget pass
expenses
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you can see what they spend money on so
for example
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we've seen a condo that's been over a
hundred thousand dollars
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on plumbing so when we did some
investigation into that we found out
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that there was actually a flood in the
condo before
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right and it was more than once so
that's a really big issue
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i think a lot of clients would be very
concerned with that because it
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it affects your insurance of course it
affects you know
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what your common expenses are because
they're going to try to make up for the
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reserve
right reserve cash at the condo votes
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right and of course
in general it just is it's concerning in
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terms of you know structurally
if it's had two floods already why why
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is that right so there's a little bit of
concern there
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and then we also look at the condo rules
and bylaws
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so things like parking can you rent the
parking out to someone else
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right does it have to be someone in the
building right um
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things like pets and you have pets in
there what kind of pets can you find
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okay
well they have that too our foot like
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it's free like
no one can have all kinds of pets in
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their house right
it all depends on which condo you're
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looking at oh you see a condo
very dog friendly i've seen condos that
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say no pets whatsoever
wow yeah it's it's a lot about lifestyle
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and of course nowadays a big concern is
smoking
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most condos do not allow it whether it
be cigarette or
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cannabis or vaping right so if that's a
concern if that's a lifestyle
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choice of the client they would want to
know that right those are the kind of
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things that we look at
and in general um some of the legal
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things that i might look at
is is the condo subject to litigation
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if they're subject to litigation is it
on the condo
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is it on the management what is this
litigation about
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okay so that's the kind of things that
we look for in a status certificate
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no problem understand okay in terms of
general tips
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like can Adaline give us a general tips to
our client our potential clients and
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what to do if they are
going to purchase a
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piece of property in the
upcoming future
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of course so one of my number one tips
is
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always get a home inspection right and
if possible try to do that before you
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put it in off
in the recent situation um the market
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become
more like a seller's market so we'll
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face multiple offer situations right
exactly i understand yeah and my second
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tip is
if possible i highly recommend you
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getting pre-approval for mortgages so
speak to
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your bank speak to a mortgage specialist
or a mortgage broker
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getting a pre-approval is really
important because it helps you along the
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way to make sure you have enough funds
for the closing day no problem okay well
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um
i think that's it for today thanks a lot
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adelaine
um just just want you guys to you know
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this is not a legal advice
so long if you have any real estate
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transaction legal questions
speak to your lawyer or find from the
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information below and then call Adaline Huang
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Real Estate lawyer of gta as soon as
possible
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thank you thank you
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foreign
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