Legal Pitfalls
In today’s world, the sale of real property is not just a marketing exercise; there are many legal issues involved, which can create liability in the sellers. Of all the things you want and expect from selling your home, a lawsuit is probably not one of them!
Unfortunately, residential transactions have seen an alarming increase in the number of claims and lawsuits. Of these claims, the majority are filed against the sellers, by their buyers. Home sellers who think they can “go it alone” might want to seriously ponder the observations of a lawyer who has defended many sellers and real estate agents against claims made by “the Buyer from Hell.”
In most provinces, the process by which title to real property is transferred is rather complicated, and the typical home seller is not familiar with the many legal issues that can and do arise, even in a fairly simple transaction. Important decisions must be made concerning contract terms, escrow matters, transfer of title, apportionment of costs and any number of other matters. Also, bear in mind that a simple missing word, or a mistake in the grammar can create a dispute which, in turn, can give rise to a lawsuit. Aside from the problem of drafting the contract language itself, sellers can face other dangers as well. For example, did you know:
Realtors understand these kinds of risks, and we can help you to minimize them in a variety of ways. We devote many hours to training and educational programs, which emphasize risk reduction, and protecting our client’s interests.
There are any number of reasons why your buyer may decide to take action against you (sometimes, they just don’t feel like making the payments any more!). However, most of these complaints allege problems relating to the condition of the property, and/or alleged representations made to them about the property or the transaction. We know how to reduce the risk of these types of complaints, by including clauses in the contract language, and by providing for such things as a professional home inspection.
When a problem arises in the transaction, we can move swiftly to “nip it in the bud”. Our thorough understanding of the myriad facets of modern transactions can help us to identify the real problem, and then to either solve it ourselves, or seek help calling upon resources that the typical seller simply does not have access to.
There is no escaping it; the best way to deal with a complaint is to prevent it in the first place.The organized real estate community has spent a lot of time thinking about how to reduce the likelihood of claims, and has responded to this threat in a number of ways. For example, the standard contract forms that we use, are full of language which can help protect you, and reduce your exposure to claims and litigation. Real estate transactions are handled by attorneys, many of the problems discussed herein will be minimized, but we still play a major role in helping your sale move toward a smooth closing. One of the major differences is that your attorney will never see your home, we do and we will know first hand if there are issues that need to be resolved and how to resolve them.
Of course, it costs money to employ a Realtor, but put it into perspective: How much money would you save by not paying insurance on your home? And how much would cost to fix it after a flood?
Unfortunately, residential transactions have seen an alarming increase in the number of claims and lawsuits. Of these claims, the majority are filed against the sellers, by their buyers. Home sellers who think they can “go it alone” might want to seriously ponder the observations of a lawyer who has defended many sellers and real estate agents against claims made by “the Buyer from Hell.”
In most provinces, the process by which title to real property is transferred is rather complicated, and the typical home seller is not familiar with the many legal issues that can and do arise, even in a fairly simple transaction. Important decisions must be made concerning contract terms, escrow matters, transfer of title, apportionment of costs and any number of other matters. Also, bear in mind that a simple missing word, or a mistake in the grammar can create a dispute which, in turn, can give rise to a lawsuit. Aside from the problem of drafting the contract language itself, sellers can face other dangers as well. For example, did you know:
- that in most provinces, there are substantial risks involved when a sellers agrees to “carry back” a note from the buyer; risks than can cost you thousands of dollars?
- that your good credit rating could be ruined by your buyer’s default, many months, or even years, after the buyer “assumes” your loan?
- that a clever buyer may be able to stay in possession of your property for many months after he defaults on the contract, and in effect “live for free” at your expense?
- that most buyer complaints involve alleged damages of less then $10,000, yet it can cost you thousands in attorney’s fees to defend such a claim?
Realtors understand these kinds of risks, and we can help you to minimize them in a variety of ways. We devote many hours to training and educational programs, which emphasize risk reduction, and protecting our client’s interests.
There are any number of reasons why your buyer may decide to take action against you (sometimes, they just don’t feel like making the payments any more!). However, most of these complaints allege problems relating to the condition of the property, and/or alleged representations made to them about the property or the transaction. We know how to reduce the risk of these types of complaints, by including clauses in the contract language, and by providing for such things as a professional home inspection.
When a problem arises in the transaction, we can move swiftly to “nip it in the bud”. Our thorough understanding of the myriad facets of modern transactions can help us to identify the real problem, and then to either solve it ourselves, or seek help calling upon resources that the typical seller simply does not have access to.
There is no escaping it; the best way to deal with a complaint is to prevent it in the first place.The organized real estate community has spent a lot of time thinking about how to reduce the likelihood of claims, and has responded to this threat in a number of ways. For example, the standard contract forms that we use, are full of language which can help protect you, and reduce your exposure to claims and litigation. Real estate transactions are handled by attorneys, many of the problems discussed herein will be minimized, but we still play a major role in helping your sale move toward a smooth closing. One of the major differences is that your attorney will never see your home, we do and we will know first hand if there are issues that need to be resolved and how to resolve them.
Of course, it costs money to employ a Realtor, but put it into perspective: How much money would you save by not paying insurance on your home? And how much would cost to fix it after a flood?