Last week’s column discussed the importance of finding a good real estate agent, home inspector and mortgage broker. Finding these professionals is an important first step in your search for a resale home. Also important to the home buying process is the role of your lawyer and title insurance company.

If you do not know of a lawyer to close your real estate transaction, you can obtain one by word of mouth. Ask friends and relatives to give you some names. Alternatively, your real estate agent will be able to provide you with the names of some experienced real estate lawyers. Once you have selected a lawyer, it is a good idea to contact your lawyer regarding your home purchase at the earliest time possible. Additionally, you should try to have your lawyer review your offer to purchase before you sign it. While this is not always possible, doing so will allow your lawyer to insert clauses that benefit you. Do not be alarmed if this cannot be done, as lawyers commonly receive the offer to purchase after the purchaser and vendor have signed it. For newly built homes, it is essential to have your lawyer review the offer to purchase before it becomes a firm contract.

Like your real estate agent and home inspector, your lawyer plays a very important role in the purchase of your home. His or her role is to conduct a title search of the property to ensure that the title is clear from any defects. (“Title” is the right of ownership in real property.) The lawyer also conducts searches to ensure that the property complies with pertinent zoning requirements and that the vendor’s property tax payments are up-to-date. It is important to note that consumers may be able to save a considerable amount of money if they instruct their lawyer to obtain a policy of title insurance at the beginning of the transaction. Title insurance is explained is more depth further along in this column.

The opinion on title that your lawyer provides will assure you that your title is marketable (i.e., that you will be able to sell the property in the future without any problems). Your lawyer will also prepare and review all paperwork necessary to close the transaction on the closing date. Additionally, you will receive a detailed breakdown of the accounting involved, including adjustments between you and the vendor. Finally, your lawyer and the vendor’s lawyer will close the transaction by exchanging various documents including the deed, funds and keys. An experienced real estate lawyer should be able to answer any questions that you may have regarding your purchase transaction.

Title insurance, which was introduced to Canada in 1991, is an inexpensive and secure way to protect your real estate investment. Your lawyer should be familiar with this new type of title protection. For a one-time premium, a title insurance policy protects you against many risks that could affect title to your lands. Coupled with your lawyer’s title opinion, title insurance provides excellent protection because it provides coverage from title risks such as fraud and forgery. Title insurance also covers the cost to defend your title in court if a claim regarding a covered title risk is made.

The cost of a title insurance policy is roughly $299. However, when a lawyer orders title insurance at the beginning of the deal, certain searches are not required, resulting in cost savings for the consumer. In other words, the cost of a policy will be offset by the cost savings it produces. Moreover, title insurance can save consumers money because it usually eliminates the need to obtain a new survey that usually costs around $750.

Both your lawyer and title insurer play important roles in the purchase of your home. You should choose them with a great deal of care.