Understanding Real Estate Transactions in Mississauga

Real estate transactions involving property purchases and sales typically follow three main stages. The first stage involves negotiating, drafting, and signing the Agreement of Purchase and Sale. The second stage focuses on due diligence, which usually includes a thorough title search. The final stage is the closing, where ownership is legally transferred.

The Agreement of Purchase and Sale

The Agreement of Purchase and Sale is essentially a legally binding contract between the parties involved. In Ontario, each real estate board uses the Ontario Real Estate Association (OREA) standard form for residential transactions. This form covers the key issues that arise in most property deals, but additional clauses can be added to address unique circumstances. Working with a real estate lawyer in Mississauga ensures that your agreement accurately reflects your intentions and protects your rights.

Legal Requirements for Buyers and Sellers

Individuals entering into a purchase and sale agreement must be at least 18 years old, not undischarged bankrupt, and legally capable of entering into a contract. Extra caution is needed if a power of attorney is used to sign the agreement, as this can introduce potential risks of fraud.

Buyers and sellers also face unique considerations. For example, when two buyers purchase a property together, they must decide whether to register ownership as joint tenants or tenants in common. In a joint tenancy, if one owner dies, the surviving owner automatically becomes the sole owner by right of survivorship. In a tenancy in common, each owner holds a specific percentage of the property, and their share passes to their estate upon death. Married couples often choose joint tenancy, while business partners investing in property typically opt for tenancy in common. A real estate lawyer in Mississauga can provide guidance on the ownership option that best suits your situation.

Key Elements of the Agreement

A well-drafted Agreement of Purchase and Sale includes a complete legal description of the property, often specifying the lot and plan or concession numbers. It also defines the property’s dimensions, the purchase price, deposit amount, and important dates related to the transaction. Consulting a real estate lawyer in Mississauga can help ensure that your agreement is accurate, comprehensive, and legally sound.

Protecting Your Investment

Property transactions involve complex legal considerations, and mistakes can be costly. By working with an experienced real estate lawyer in Mississauga, buyers and sellers can navigate these challenges confidently, knowing that their legal interests are fully protected throughout the process.