Navigating the real estate market involves many legal considerations that can substantially impact buyers and sellers. Purchasing property is a significant investment. Given the magnitude of such a purchase, it is prudent to do everything possible to protect yourself and your investment. While every situation is unique, there are common issues in real estate that you should be aware of if you intend to purchase property. However, having an experienced real estate lawyer to guide you can prevent costly mistakes in the long run. Here are 3 common issues that a real estate lawyer can help you navigate.
Title Issues
The title search is a key document in any property transaction. It captures crucial information about the property being bought or sold that is not visible when you visit a property. Once you have identified the property you wish to purchase, your lawyer should conduct a title search, examining the public information about it at the Land Titles Office and advising you of any liens or problematic claims on the property. A real estate lawyer will do proper due diligence checks to ensure that any of these liens or claims will be appropriately handled either before or after completion. Some issues that a title search may uncover that even the owner may not be aware of may include:
- builder’s liens
- certificates of pending litigation (from BC Supreme Court)
- duplicate title removed from the Land Titles Office
- Court judgments from creditors
- government liens (payroll, MSP, property tax deferral)
- family dispute liens
Misrepresentation
When a seller misrepresents the condition of a property, it is known as misrepresentation. Misrepresentation can take many different forms including innocent misrepresentation, negligent misrepresentation and fraudulent misrepresentation, and your legal remedy depends on the type of misrepresentation that has occurred. While outright fraud and deception can occur, negligence can also occur without the seller’s intent to deceive. Buyers are often unaware that a seller may also have no obligation to disclose some types of problems with the property, as in many cases, sellers may only need to disclose material latent defects pursuant to the legal doctrine of caveat emptor (or buyer beware). What a seller needs or ought to have disclosed is often a contentious area and buyers are advised to consult with a lawyer for advice on potential remedies, or even if they are entitled to a remedy at all.
Breach of Contract
Did you know that when one party breaches a contract of purchase, the contract is not automatically at an end, and in fact, the non-breaching party is obligated to act quickly and decisively with respect to their response? If you are the breaching party, there are still legal steps that you may take that minimize the legal risk and potentially defend you from legal liability even if you are sued. If you are the innocent non-breaching party, there are steps that you must take to preserve your legal rights, failing which you may be disentitled to legal remedies if you fail to act appropriately and quickly. Just because one party has breached the contract does not necessarily mean the innocent party is automatically entitled to anything by law, and all parties (whether the breaching party or the innocent non-breaching party) should immediately consult with a lawyer to ensure that they preserve their legal rights and defences by taking specific, concrete actions within a short window of time after the breach has occurred. These actions are assessed on a case-by-case basis and often fact-dependent, but in all cases, should be done quickly and under the advice of a legal professional or legal rights may be lost.
Protect Your Investment with an Experienced Real Estate Lawyer
Bernard Lau and Co. has represented both buyers and sellers, as well as breaching and non-breaching innocent parties for all stages of litigation including trial in Court. We have successfully defended breaching parties from incurring legal liability for their breaches, and have also successfully recovered significant monetary compensation including the deposit on behalf of innocent, non-breaching parties. In many cases, we are successful in negotiating an optimal outcome to avoid an expensive and lengthy trial. For those cases that are highly contested, we have extensive experience conducting and obtaining successful trial outcomes for our clients.
Real estate transactions can be daunting and the financial and legal consequences are very significant given the high value of real estate transactions. If you are considering purchasing real property in British Columbia, contact Bernard Lau and Co. We provide quality legal representation and safeguard your interests with timely and prudent legal advice. Our services include property title searches, title examination, negotiations, resolving disputes and litigation, and lien removal.
We can help you navigate the complexities and make informed decisions in the ever-evolving world of property transactions.
Call +1.604.285.5240 or complete our contact form to schedule a consultation.