Types of Lawyers

Mark Demong from 97th Street Law joins us again to go over types of lawyers and what is the difference between a real estate lawyer.  Find the contact details of Mark here

To start, here are some names which generally all have to do with lawyers: Attorney, Barrister, Solicitor, Advocate, In-house Counsel, Legal Advisor, Litigator, Negotiator, Prosecutor

Attorney comes from the US system and what they commonly used for lawyers, and in Canada generally we use the British terms of Barrister and Solicitor.  A Barrister is a lawyer that approaches that bar/bench in the court room and advocates on behalf of a client. Whereas a solicitor is a lawyer that does the paperwork and doesn’t go to court.  Usually in Canada we don’t differentiate the two much and often you will hear the terms together as a Barrister and Solicitor.  

Real Estate Lawyer

For real estate lawyers they are simply lawyers that deal with real estate transactions. 

As where a divorce lawyer is simply a lawyer that deals with divorce issues and settlements.

The important difference is that when a lawyer labels themselves as a real estate lawyer, they should have the experience needed as it will be completely different than family law, litigation or law related to divorce situations.

You don’t want a divorce lawyer doing your real estate transactions, any more than you would want a real estate lawyer in the case you are getting a divorce.

You want a lawyer that will be able to do the paperwork correctly, interpret the contracts correctly, follow the needed processes and look for any potential issues.  Having experience doing so is necessary. 

Real Estate Paralegal 

A paralegal, regardless of what area of law they are in, support the lawyer with writing up documents, filing, submitting, etc.  They interpret things from the granule level, where the lawyer sees more of the bigger picture.

Real estate paralegals, like real estate lawyers have the experience and the repetition which helps them to specialize and be good at processing the needed documents.

Property Inspections

If you haven’t had a property inspection before you are likely wondering how it works. Of course, all property inspections will depend on who is doing the inspection. This write up is meant to give you a basic understanding.

Reason for having a Property Inspection 

Most commonly, it is to understand an issues with the property, big and small, to avoid surprises in the future if you go ahead with a property purchase.  In this case it is generally added as a condition when you put in an offer on a home, so that you can have the time right after the offer is accepted to have the property inspected before you finalize the purchase of the property.

Or, if you are the homeowner, which is less common, you might have a property inspection to make any of the needed fixes to your home either before you sell or just for general maintenance.  For Seller’s I have never recommended that they spend the money for a property inspector before they sell as that money is generally not money they would be able to add to the sale price amount and buyers usually won’t look at a seller’s property report instead of having their own inspection.

Price of a Home Inspector

In Edmonton, Sherwood Park and surrounding areas, hiring a property inspector in Edmonton costs $475 to $575.

How to find a Home Inspector

If you would like to reach out to Josh, you can find his contact details here:

https://dkeet.ca/guest-speakers.html

Here is a list of Edmonton certified home inspectors:

https://www.nachi.org/certified-inspectors/near/edmonton--ab--canada

Or if you need a few options of recommended home inspectors in Edmonton and the surrounding areas, please feel free to reach out to me.

I am also connected to realtors and professionals across North America, so if you need support in other cities, I can also likely refer you for other cities as well. 

Inspection Day

The property inspector shows up with ladders, humidity detectors, a drone (usually) and everything else they need to inspect.

They usually start from the exterior, logging everything they note on the property.

They look for everything big and small but remember that they cannot open any walls. 

They will walk the buyer through the home to show them issues.  Property inspectors in Alberta, and I assume other provinces, are not allowed to give quotes for fixing issues but they should be able to give an idea of what it takes to fix and issue and approximation of the cost.

At the end of the inspection the buyer should have a clear idea of what they are getting as their new home.

The property inspector works for the buyer and the report is confidential to the extent that the buyer doesn’t have any obligation to share it with anyone unless they want to.  I am almost always there for the inspections. 

Massive Reports and Buyers left not knowing how severe issues are

Get an idea of how severe things are.  There are legal guidelines for property inspections which can get them in trouble for underplaying issues in the house.  This can cause property inspectors to report the issues to the buyer without their opinions. Leaving buyers with just a huge list of big and small things for the buyer to figure out the meaning.  I understand that reason why property inspectors may protect themselves, but the buyers should want to know clearly what it would cost for them to get issues fixed or even if the issue is one that most people would not fix. 

I was looking through a property inspection report (not through an inspector that I recommended) and it was extremely thorough. Pages and pages of information including points that mentioned parts of the house that were great.  The report was extremely thorough to the point that it was exhausting reading through this manual of a report. I am not a qualified home inspector, but I have more experience than most and found reports like this overwhelming. 

You may want to review the list later and try to fix all the little things, so the details might be good to have. So long as the 100+ page report is verbally explained in a much shorter non-overwhelming way, you should be fine, but if you are feeling overwhelmed, clearly tell your property inspector to simplify and explain everything in a way that you are comfortable with.  

Negotiations after an inspection, when the inspection is connected to a buyer condition on an Offer to Purchase

Some issues can be used as leverage.  I have had buyers that assumed that every cent it would take to fix every issue would be coming off the purchase price. That is likely not going to happen unless it is truly a buyer’s market and the seller fears that you are their only chance at selling.  In a balanced market if there are major repairs, like a new roof, furnace, or foundation issues, then lowering the price may be negotiated. If it is a strong seller’s market and there are buyers lined up behind you, you will likely need to either accept the issues or move on to a home that is in better condition. 

Fixes found in a Property Inspection

Sometimes they can be small fixes that can be fixed with a screwdriver or a wrench or even possibly left alone. 

To give you an idea of some recent issues, on a property that I manage, one “major” issue was an electrical issue. The sump pump and the hot water heater were sharing the same outlet.  Talking with an electrician, the breaker box was on the other side of the home, and it would mean opening walls (and then repairing, mudding, sanding, painting walls) plus running long lines of electrical.  The decision was made to just leave it.  Sometimes you can find issues that have been technically issues for 20+ years and have never been a problem. In the case of this shared outlet the danger is that there is a power overload and both the hot water heater, and the sump pump stop working is the breaker trips, but again this seems like something that hasn’t been an issue for probably 20+ years.  Another “major” issue found was a capped off downspout. In the end this was also not something that the roofing company saw as a problem as they felt like just making sure your eavestroughs are clear is more important and would prevent it from being a problem.

Expectations for Property Inspections

Josh mentions that there is always some issue that can be found, even when homes are brand new, so it is best not to expect a perfect home.

Inspectors should be helpful and have your best interest, but also explain things clearly at your level of understanding. 

Takeaways 

Ask lots of questions, know exactly what an issue would take to fix/resolve it and how important or severe the issue is.

Remember to see the process as a learning experience. Property inspectors will usually be very happy to educate you on simple fixes, how systems work, and better ways to maintain your home. Learn and enjoy.

Estate Planning for Real Estate

Mark Demong from 97th Street Law in Edmonton joins in the video adding his opinions with over 30 years’ experience practicing law in Alberta. Visit the following page if you want to find Mark’s details to connect more with him: https://dkeet.ca/guest-speakers.html

Estate planning is an inevitable part of life for people who own property, especially for when they are getting older. Eventually something is going to happen with the real estate you own.

First a will is important.  Get one, if you don’t have one. While you are at it, plan and pay for your funeral and burial. You may have a very different opinion on how much you would spend on a casket, or tomb stone, or even for flowers.  Instead of dropping the burden on someone else and having someone else spend your money on these expenses later make a plan well in advance. 

Mark mentions that there is an opinion on lawyer expenses and how people feel that they paid too much for estate transfer paperwork that seemed quite simple.  A way that someone can avoid needing to transfer their estate later is to add their child onto their land title in advance which some people could see as a simple way to avoid using a lawyer for the estate on their passing.  In the case of joint ownership of a property, when someone passes away, there is a principle called survivorship, so that the person who passes away first can be removed from the title by providing the land title’s office with proof of death. Then, the survivors are the remaining owners of the property.

That sounds simple and, if the person (or people) that you eventually want to own your property are added, you can avoid legal expenses, but Mark warns people to think of the following scenarios as what sounds good today might not sound good in the coming years. 

What if Junior was added to the property, but later the parents decide they want to downsize and move to a place with assisted living? By adding Junior’s name on the title, now they need Junior’s signature to make that sale go ahead.  Now, what if Junior doesn’t sign?

Assuming Junior isn’t a resident of the home, Mom and Dad can sell the house with no tax consequences, but Junior on the other hand may need to pay the taxes on his share of the property. When he receives the gift of a 1/3 interest of the home, he receives a capital value. When Mom and Dad (he) sells that property, if the property value went up, he would need to pay taxes.

What if Junior is married and gets divorced. His ex-wife will likely want half of what Junior had in his parent’s house which she would legally be entitled to. She could likely file a certificate of pending litigation and he may not lose too much but would need to be paying his lawyer to sort that out.

Or what if Junior has trouble with his credit card. The credit card companies can register a judgement against his parent’s house. 

These are example that might have a lower chance of happening but points you might want to consider. 

In real estate, life changes are often the reason for sales.  Whether it is someone moving to a new city, a growing family wanting a bigger house, downsizing, divorce, someone passing away.

Often people don’t think too far ahead when they buy a property and what could possibly change in the future. 

Hopefully this video can make you consider some situations. I hope you can make careful decisions and to look at the angles when it comes to estate planning.