private sale... as seller, what do I need to be aware of? Do I need a lawyer?

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LateStudent
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private sale... as seller, what do I need to be aware of? Do I need a lawyer?

Post by LateStudent »

Hi forum, I have a handshake on an agreement to sell my condo to a neighbour at a settled price. Although no commissioned real estate agents are involved, he has a realtor friend that is advising him and will prepare the paperwork. I think he also has access to a lawyer. I'm not sure what the next step is, I guess he's getting the papers ready, and I expect to be presented with them soon.

I'm pretty clueless, but what do I need to do to make sure I'm protected and that the deal goes smoothly? There's no mortgage on my property, so I think that helps simplify things. It seems to me that as seller, I'm not taking on much risk; all I need to do is receive the cash, and I'm done (yes/no??). The neighbour is an acquaintance and seems reasonably trustworthy. I don't really want to pay for legal assistance, but should I?

thanks, if you have any advice!
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Re: private sale... as seller, what do I need to be aware of? Do I need a lawyer?

Post by AltaRed »

The purchase and sale agreement form used should be the one being used by the Real Estate Board for your jurisdiction, or a facsimile thereof. It needs to have at least language to cover you for a default situation in which the funds do not transfer to you, i.e. wired or deposited in your bank account, on Closing Date and a mechanism that prevents Title transfer until it does. When lawyers are involved, they collectively act to ensure those things happen on the same day and hold funds in trust accordingly.

If you have not done a RE sale before, at least look back at the documents you have from when you purchased your condo before for consistency and I would pay a lawyer (or realtor friend) to at least vet the Purchase and Sale agreement before you sign it for any abnormalities. Don't be penny wise and pound foolish.
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Re: private sale... as seller, what do I need to be aware of? Do I need a lawyer?

Post by MALDI_ToF »

My parents used a notary public when they sold their house. Cheaper than a lawyer. They checked all the forms and dealt with all the paperwork and coordinated the money. I would look into getting either a notary public or a lawyer. Go in for a consultation at least...those are usually free.
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Re: private sale... as seller, what do I need to be aware of? Do I need a lawyer?

Post by LateStudent »

thanks for the comments so far.

Sounds like I should have the papers reviewed.

Does anyone know offhand how much I should expect to pay for a lawyer and/or a notary? Nice to know a ballpark number, or a range, before I go to talk to them...
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Re: private sale... as seller, what do I need to be aware of? Do I need a lawyer?

Post by AltaRed »

Depends on your location and how competitive they are, and what it is you want them to do. Reviwing only a P&A agreement will be considerably less than handling the paperwork. Phone a few first, describe your needs and they will provide you with a range.
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Re: private sale... as seller, what do I need to be aware of? Do I need a lawyer?

Post by Spudd »

When we sold our house a year ago we paid around $600 to the lawyer for a full closing. If you just want them to review the papers I would expect it to be considerably cheaper.
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Re: private sale... as seller, what do I need to be aware of? Do I need a lawyer?

Post by LateStudent »

Can anyone recommend a real estate lawyer in the Guildford area of Surrey, BC?
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Re: private sale... as seller, what do I need to be aware of? Do I need a lawyer?

Post by Just a Guy »

You'd probably want to have a lawyer to ensure that the paperwork is all filed properly. The last thing you want is to think you sold the property, only to find out in a few years that the banks are after you for a mortgage on the property that is still in your name, while the money is long gone.

A lawyer shouldn't cost you more than $1000 including all the paperwork.
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Re: private sale... as seller, what do I need to be aware of? Do I need a lawyer?

Post by Pickles »

A real estate agent is not required by you. Their job is to show the unit and sell it. You've already done that and saved yourself thousands and thousands of dollars by not using an agent. You should hire a lawyer (not a notary) to review the offer of purchase, ensure the terms are sufficient and to ensure the money is paid to you before the sale is registered.

To try to save a few dollars by skipping on hiring your own lawyer would be folly, especially since the agreement is being drawn up by an agent working for the purchaser who has also prudently hired a lawyer to protect his interests. The cost of a lawyer is peanuts compared to the value of the asset you are selling. Protect yourself!
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Re: private sale... as seller, what do I need to be aware of? Do I need a lawyer?

Post by Peculiar_Investor »

Completely agree with Pickles. Protect your interests and get a lawyer involved.
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Re: private sale... as seller, what do I need to be aware of? Do I need a lawyer?

Post by Norbert Schlenker »

Pickles wrote:The cost of a lawyer is peanuts compared to the value of the asset you are selling. Protect yourself!
Amen.
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Re: private sale... as seller, what do I need to be aware of? Do I need a lawyer?

Post by LateStudent »

my wife suggests that both sides should just use the buyer's lawyer (and split the cost), on the grounds that the lawyer is professionally obligated to meet all legal standards.

Is this a bad idea? (and for extra credit: why?)
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Re: private sale... as seller, what do I need to be aware of? Do I need a lawyer?

Post by Insomniac »

IANAL, but I would think that it's not ethical to represent both sides.

To find a lawyer, try asking the person you deal with at your bank for a suggestion. She should know who is good at title transfers.
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Re: private sale... as seller, what do I need to be aware of? Do I need a lawyer?

Post by twa2w »

Make sure the offer is clear on what is/isn't included in the price ie appliances, fixtures etc as well as being clear on when possession date/time etc.
A lawyer, or in BC a notary, calculates adjustments if closing is not at month end ie condo fees, as well the lawyer usually arrages to have meters read, utilities, condo board etc advised of change in title.
I believe the sellers lawyer also prepares the transfer of title document.
Who is going to do those things for you.
You can use the same lawyer/notary but if a dispute arises you may have a problem. Also if you do,
the costs shouldnt be split. The sellers lawyer usually does a lot less and fees should be less for the seller than the buyer.
Legal help is a small price for the protection it gives you.
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Re: private sale... as seller, what do I need to be aware of? Do I need a lawyer?

Post by freedom_2008 »

I have sold houses myself three times in the past, once in Ont, twice in BC, I always used a lawyer each time, and involved them as early as possible in the process.

Our last sale by owner (in Victoria) had 6 offers, the first one fall though (couldn't get a mortgage), so we went with the 2nd offer. We used the standard BC Contract of Purchase and Sale form (downloaded from BC real estate association site). The buyers did want to use the same lawyer, but my lawyer (a good one specialized in BC real estate) said: "For a private sale both the law society and the notary society prohibit their members from acting for both buyer and seller.", so they had to get their own lawyer.

In my experience, a lawyer who is specialized in real estate sales is a must if you want to sell your house/condo by yourself, especially if you have never done it before. My lawyer's fee is very reasonable (under $300 in 2009), but he is in Victoria and very very busy.
Last edited by freedom_2008 on 25 Feb 2015 01:43, edited 1 time in total.
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Re: private sale... as seller, what do I need to be aware of? Do I need a lawyer?

Post by LateStudent »

@freedom508, where are you canoeing in your profile pic? We're looking for some fun canoe trips! FYI, try googling Black Canyon on the Colorado for a great trip, or message me if you want some tips about it.

Thanks everyone!! We're currently scrambling to get our own lawyer

Got comments? Keep 'em coming. Much appreciated!
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Re: private sale... as seller, what do I need to be aware of? Do I need a lawyer?

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"freedom_2008", oops
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