ROLEPLAYERS when buying and selling PROPERTY:In the property buying and selling process, there are several key role players, each with a specific role and responsibility. Here's an overview:
Buyer:The individual or entity seeking to purchase a property. They specify their preferences, negotiate terms, and undertake due diligence before completing the purchase.
Seller:The individual or entity looking to sell a property. They set the sale price, negotiate offers, and provide necessary information about the property.
Real Estate Agent:Acts as an intermediary between the buyer and seller, facilitating the sale. They market the property, coordinate viewings, negotiate offers, and assist in completing the necessary paperwork.
Real Estate Agency:The company employing the real estate agent. They provide support, training, and resources to the agents, and often handle legal and administrative aspects of the sale.
Attorneys or Conveyancers:Handle the legal aspects of the sale, including the transfer of ownership, title searches, and ensuring that the transaction adheres to all legal requirements.
In a property transaction, there are three key attorneys involved, each with specific roles, responsibilities, and associated costs:
Transfer Attorney:Role: The transfer attorney handles the legal transfer of ownership of the property from the seller to the buyer.
Responsibility: The buyer typically pays the fees for the transfer attorney as per common law.
Selection: The seller generally has the right to choose the transfer attorney, although practices may vary based on local customs or agreements between parties.
Bond Attorney:
Role: The bond attorney handles the legal aspects related to the mortgage or loan that the buyer secures to purchase the property.
Responsibility: The buyer is responsible for paying the fees associated with the bond attorney.
Selection: The bank or lending institution providing the loan typically instructs a bond attorney from their panel of approved attorneys.
Cancellation Attorney:
Role: The cancellation attorney manages the process of canceling the seller's existing bond (mortgage) over the property being sold.
Responsibility: The seller is responsible for paying the fees of the cancellation attorney.
Selection: The bank or lending institution that holds the seller's existing bond instructs the cancellation attorney.
In summary, the buyer typically covers the costs of the transfer attorney and bond attorney, while the seller covers the costs of the cancellation attorney. The specific selection of the transfer attorney and cancellation attorney can vary based on local practices and agreements between the parties involved. However, the bond attorney is usually chosen by and instructed by the bank or lending institution providing the loan to the buyer.
Mortgage Originator:
Provides financing options and assists the buyer in securing a mortgage or loan for the property purchase.
The bank:The primary role of the bank is to provide the buyer with the necessary funds to purchase the property, commonly in the form of a mortgage or home loan.
Banks evaluate the buyer's financial stability and creditworthiness to determine the loan amount, interest rates, and loan terms they can offer. After assessing the buyer's eligibility, the bank issues a loan offer outlining the approved loan amount, interest rates, repayment terms, and any conditions that need to be met. The bank instructs a bond attorney from their panel of approved attorneys to handle the legal aspects of the mortgage documentation, ensuring their interests are protected during the property purchase. The bank typically requires the buyer to secure homeowners insurance to protect the property, and they may assist in arranging this insurance. Post-closing, the bank collects regular loan repayments from the buyer, including principal and interest, until the loan is fully paid off. Even after the buyer has fully repaid the loan to the bank, the mortgage or bond (a legal interest the bank holds in the property) needs to be officially canceled or discharged in the Deeds Office.
Deeds Office:The Deeds Office plays a central role in property transactions by overseeing the legal transfer and registration of property ownership. Acting as the official government entity responsible for property records, it meticulously reviews, verifies, and registers various property-related documents, ensuring their compliance with legal requirements and protecting the rights of property owners. The Deeds Office maintains a secure and public repository of property titles, deeds, and related documents, guaranteeing the accuracy and transparency of property ownership, encumbrances, and transactions. It acts as a critical intermediary, facilitating the legal transfer of properties, changes in ownership, and the establishment of legal rights and interests in real estate.
