FAQ Residential and Commercial Real Estate
What is Real Estate Law?
Real estate law covers the ownership, use, and transfer of residential and commercial property. It governs transactions such as buying, selling, leasing, financing, and developing real estate. Real estate lawyers assist with drafting agreements, reviewing contracts, conducting title searches, and ensuring compliance with zoning and municipal laws. Their role is to protect clients’ rights and ensure smooth, legally sound transactions.
Why do I need a lawyer when buying or selling property?
A lawyer ensures that real estate transactions are legally binding, accurate, and protect your interests. They review purchase agreements, verify property titles, handle closing documents, and manage the transfer of funds. Without legal guidance, buyers or sellers risk hidden liabilities, unclear contract terms, or disputes over ownership. Having a lawyer provides peace of mind and prevents costly mistakes.
What is the difference between residential and commercial real estate?
Residential real estate refers to properties designed for living, such as houses, condominiums, and apartments. Commercial real estate includes properties used for business purposes, such as office buildings, retail spaces, warehouses, and industrial sites. Commercial transactions are often more complex, involving zoning laws, leasing arrangements, financing structures, and regulatory compliance.
What is title insurance, and do I need it?
Title insurance protects property buyers and lenders against losses from title defects, fraud, undisclosed liens, or errors in public records. While not legally required in Canada, it provides added security during real estate transactions. Lawyers often recommend it, as it helps safeguard against unexpected issues that could impact ownership rights or property value.
What happens during a real estate closing?
Closing is the final stage of a property transaction. It involves signing legal documents, transferring funds, and registering ownership with the land titles office. The lawyer ensures all conditions of the purchase agreement are met, clears any outstanding liens or mortgages, and confirms that the buyer receives a clean title. This process finalizes the transfer of property from seller to buyer.
How do commercial leases differ from residential leases?
Residential leases are typically standardized and regulated to protect tenants, covering aspects like rent, repairs, and termination. Commercial leases, however, are highly negotiable and often more complex, addressing issues such as property use, maintenance responsibilities, renewal terms, and rent increases. Business tenants benefit from legal advice to ensure the lease aligns with their operational needs.
What are zoning laws, and why are they important?
Zoning laws regulate how land can be used, dictating whether a property is designated for residential, commercial, industrial, or mixed-use purposes. They may also control building size, density, and placement. Zoning compliance is crucial for development projects and business operations. Before buying or building, a lawyer can review zoning regulations to confirm that the intended use is permitted.
What should I know about buying a condominium in Canada?
Purchasing a condominium means owning your individual unit while sharing ownership of common areas such as lobbies, elevators, or gyms. Buyers must review the condominium corporation’s bylaws, reserve fund status, and monthly fees. Lawyers assist by reviewing the status certificate, which outlines the building’s financial and legal health, ensuring there are no hidden issues.
What is a real estate dispute, and how is it resolved?
Real estate disputes can arise from contract breaches, boundary disagreements, title defects, landlord-tenant issues, or construction delays. Resolution may involve negotiation, mediation, arbitration, or litigation, depending on the severity of the issue. A lawyer can evaluate the dispute, protect your legal rights, and pursue the most efficient and cost-effective resolution.
Why should I hire a real estate lawyer?
Real estate transactions involve significant financial and legal commitments. A lawyer provides essential services such as drafting agreements, conducting due diligence, reviewing contracts, and ensuring compliance with local regulations. Whether buying a home, leasing a commercial property, or developing land, legal guidance helps prevent costly errors and ensures a smooth process from start to finish.
The information contained herein is general and is not intended, and should not be construed, as legal advice or an opinion by the law firm. The material may not apply to, or be suitable for, your specific circumstances or needs. You should contact counsel before taking any action based on this information. We are here to help you. Contact us today to discuss your specific situation.