TIPS TO START OFF 2025 - Isenberg & Shuman

The start of a new year offers a perfect opportunity to reflect on past lessons. As real estate lawyers, we have encountered a variety of preventable challenges that buyers, sellers and realtors face. Below are some tips to consider to ensure that you and your clients are adequately protected when it comes to dealing with buying and selling properties.

1. Make a Will – you might think that estate planning has little to do with real estate, but it plays a critical role. Without a proper will, property owners who pass away unexpectedly may require a costly and time-consuming Certificate of Appointment (probate) process in order to transfer ownership. A well thought out estate plan can avoid problems when buying or selling properties. This becomes evident when owners of property have not planned ahead and die unexpectedly and need a Certificate of Appointment (probate) in order to sell the property. Additionally, we have seen many unfortunate cases where individuals use internet templates or draft their own wills. These often turn out to be invalid or problematic, resulting in costly and lengthy court applications for their beneficiaries. Plan ahead. Make a will and you will have peace of mind for you and your family.
2. Title Transfers – related to making a will, many people believe that they can transfer ownership of their property to their children to avoid probate. While this may be true, there are a number of factors that need to be considered before blindly adding a child to your title. Matters like tax consequences, potential spousal claims, loss of control and potential challenges by an unhappy family member can result in a family fight and costly litigation. After obtaining sound legal advice, many clients will forego a title transfer to avoid the risks and complications that go along with it.
3. Condominium Insurance – if you are buying a condominium, it is imperative that you speak to an experienced insurance professional to ensure that you have the proper insurance in place. This insurance should include contents, liability and deductible insurance. Many homeowners do not understand the importance of having adequate deductible insurance. For instance, if you cause a flood in your unit and it damages other units, the condominium can compel you to pay its deductible which in some cases could be $25,000 or more.
4. Title Insurance – this has been around for years and anyone who buys property should have a title insurance policy in place. For a one-time premium, title insurance provides coverage for a number of risks including fraud, forgery, open permits, tax arrears, etc. This should be arranged by the lawyer handling the purchase of the property. We strongly recommend that all of our clients obtain title insurance when purchasing a property.
5. Renovated properties – If your clients are buying a property that has been renovated or buying a property that has been previously demolished and rebuilt, we would recommend that you submit an offer that is conditional on a lawyer’s review of the Agreement. This will allow the lawyer to amend and improve the offer with clauses that will protect your client from a legal standpoint. As well, you should make inquiries with the seller or its realtor about the availability and status of building permits for the property.
6. Rental Items – Most properties have rental items such as hot water tanks, furnaces, air conditioners, etc. Too often realtors fail to properly identify these items in the Agreement which invariably leads to confusion and complications. It is important to verify which items are rented and which items are owned by the seller. Similarly, fixtures and chattels need to be clearly identified and listed in the Agreement of Purchase and Sale.
7. Tax and legal advice – In many situations, clients will look to you for tax and legal advice. This is because buying and selling real estate often intersects with tax and legal matters. You are well advised not to provide tax or legal advice. My recommendation is that you politely tell your client that you are not equipped to provide this advice and refer them to an accountant or a lawyer.
   By keeping these tips in mind, you can avoid common pitfalls and ensure smoother transactions. If you have further questions or need personalized advice, do not hesitate to contact us.