In
addition to obtaining a written quotation certificate for all legal
costs (including both fees and legal disbursements), there are two
important questions that should be asked when shopping for a real estate
lawyer:
What percentage of the lawyer's work is
residential real estate (not commercial real
estate or other types of law)?
NOTE: If the answer is less then 90%, keep
looking since this is the age of specialization and
efficiency (getting the best service at a
competitive cost). If the lawyer's work is at least
90% focused on the subject matter, you can be
reasonably assured that he/she also has law clerks
and secretaries who are concentrating 100% on
residential real estate which will enhance a
client's ability to address any possible issues and
get the job done, particularly if special problems
arise when processing the real estate transaction
through to its ultimate conclusion (getting a key
for the purchaser and closing funds for the vendor
on closing day).
Does the lawyer automatically arrange and obtain
title insurance
for all
purchasers (the cost of
which is included in the written quotation
certificate for legal fees and legal expenses)?
NOTE: The Law Society of Ontario requires
all lawyers, when acting for purchasers, to
inform clients about title insurance and its
advantages. The problem is that all lawyers now
order title insurance (at least some of the time)
when the lawyer becomes concerned about a matter
regarding an inadequate survey or a question of
title. If the overall total cost of legal fees and
legal expenses is no greater when a purchaser is
provided with title insurance, the question is why
not provide it to all purchasers since such
insurance:
is a certification of
title that is broader than the lawyer's
traditional title opinion;
is covering frauds and
forgeries in the chain of title as well as after
closing (which a lawyer does not cover when giving
a title opinion);
is no fault, no
deductible insurance;
is issued (once it is
obtained) for the entire period of ownership by
the buyer (including transfer of title to a spouse
or to heirs through a will) for the price that was
paid for the house (and up to double the price
paid, as the house increases in value over time
which is something that a basic traditional
lawyer's opinion cannot do).
TITLE
INSURANCE should be provided to every
purchaser and not just when a lawyer
perceives a potential survey or title concern
(particularly if there is no practical additional
cost to the consumer in overall total legal fees and
legal expenses), the concern being: what if a
potential problem exists but is not perceived by the
lawyer at the time of completing the purchase!
