The most important document in a real estate transaction is the Agreement of Purchase and Sale. This point applies regardless of whether you are buying a house, condominium, townhouse, resale or new. Unfortunately, many homebuyers fail to realize the importance of having an experienced real estate lawyer review this document before you sign it. Should you fail to have a lawyer look at it before you put pen to paper, you will be stuck with its terms and this may have serious financial consequences, particularly in the case of new homes from a builder. Different rules apply for different types of properties.

If you are buying a brand new condominium, you have ten (10) days from the date the offer is accepted by the builder and you have received the disclosure statement. This is when you want to have your lawyer review the documents for you. If you don’t like what you see, you can cancel the deal, so long as you provide the builder with the required notice. Your lawyer can help you with this.

If you are buying a brand new freehold home, there is no ten (10) day grace period as with new condominiums. However, you can insert a schedule into the Agreement of Purchase and Sale making the transaction conditional for a given period upon your lawyer’s review. This gives you the opportunity to have your lawyer review the Agreement and provide you with advice and suggestions. With builder offers, there are a number of items that you need to consider. Most of these relate to the additional costs that you will be faced with. A partial list may include:

-Charges for the installation and connection of hydro, water and gas meters on the property;
-driveway paving;
-tree paving;
-Tarion new home enrolment fee;
-development charges and/or lot levies;
-damage or grading deposits.

Your lawyer will be able to assist you to explain these charges and perhaps suggest a cap or ceiling on these charges that the builder might agree to for all of these items. Aside from the financial aspects of the transaction, your lawyer may also point out other important items found in the builder’s offer. These may include the builder’s right to substitute materials and architectural controls that may prohibit the house being built exactly as shown.

When you buy a resale house, it is not common for buyers to have a lawyer review the offer before it becomes legally binding. However, in some cases, this may be preferable. When buying a new house or new condominium, it is important to recognize that the builder’s lawyers have prepared the Agreement. As such, all of the terms will favour the builder. That is why it is so important to have your lawyer review the Agreement so that you fully understand what you are buying and the additional costs associated with the purchase.