Investing in Another Province Here’s Why You Need a Good Investment Property Lawyer

Investing in Another Province? Here’s Why You Need a Good Investment Property Lawyer

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Investing in real estate in Canada can be a daunting endeavour. There are an awful lot of things that need to be considered and known before you take the plunge. Performing a thorough analysis of the investment should be step one—figuring out the potential cash flow, the potential costs and liabilities and a myriad of other factors that you should look into. Figuring out this information can appear overwhelming at first, but it’s just a matter of methodical research and dogged discovery.

Table of Contents - Investing in Another Province? Here’s Why You Need a Good Investment Property Lawyer

Things can get a bit more complicated if you want to invest in a different province than the one that you currently live in. Investing becomes more complex because things like your tax situation can easily change if you have money tied up in another province, so it’s helpful to have a professional on your side who knows how to navigate the ins and outs of investing in other provinces. A good investment property lawyer can be your best friend in this scenario, and they can help you out in many different ways.

Do I need to hire an attorney?

The short answer to this is no—you don’t need to hire an attorney to complete a real estate transaction. However, this does not mean that it’s a good idea to not hire one. They know the intricacies of the law and the financial realities of property investment better than just about anyone and can help shield you from pitfalls and future legal obligations that could cost you an awful lot of money and heartache. Having one in your corner not only gives you peace of mind, but it also gives you the chance to think more comprehensively about the investment itself rather than wondering if you are meeting all legal standards for a transaction.

Legal representation is irreplaceable

Having a lawyer representing you in any sort of complex transaction like a real estate exchange is a great way to ease the financial and mental strain of going through such a challenging process. Legal representation means that you can always be present during negotiations and conversations because having a lawyer means that you are not left being the unrepresented party during negotiations. This can be a costly place to be in since there are privileged conversations that can take place if you’re not present. Having a lawyer means that you’re always represented during these, and you can feel assured that someone is looking out for your best interests at all times.

Know the local lay of the land

Canada’s provinces are all different in many wonderful ways, but this can add to the stress of a real estate transaction. If you’re starting to consider investing in a different province, a lawyer can give you an interesting perspective on what is possible there. You can use their insight and knowledge to gauge markets, first and foremost, and as you work together more and more you might even have them represent you at real estate showings and so forth. However, the most immediate benefit is that a local real estate attorney is going to give you insight into local laws and regulations that really can’t be replaced. This insider knowledge will ensure that a transaction goes as smoothly as possible

Protecting against future litigation

As discussed above, having a lawyer on your side means that you’re lessening the chance for future litigation that can cost you immense amounts of time and money. Lawyers are professionals who know how to navigate the intricacies of the law, and as such, you can rest assured that any contract that they prepare (rather than one that you do) will fit into all current legal structures in the province that you’re hoping to invest in. Having a local real estate attorney representing you means that you can rest assured that they know the local picture and protect you with their knowledge. They will know what needs to be put into writing to protect you and will likely be working another local real estate attorney on the other side. This type of mutual understanding means that the headache of post-closing litigation is likely considerably lessened.

Save your time and money

One of the parts of a real estate transaction that many people likely underestimate is the massive amount of time that must be invested in communication between the sides when closing is being negotiated. This is something that you can theoretically handle on your own, but if it’s being done correctly it will require a massive investment of time. You will be performing hours of research to be sure that you’re handling everything correctly and shielding yourself against any liabilities. Working with a local real estate attorney means that you’re mitigating this risk.

Lawyers deal with this type of transaction daily and are well-versed in the laws and regulations that need to be covered via this regular communication. They can easily figure out what needs to be said and how it needs to be said, and will easily be able to navigate the regulations of a province that you might not be entirely familiar with.

Clean passage of title

One of the parts of a real estate transaction that can hold things up is the passage of title. If you don’t have legal representation it can make a clean passage that much more difficult. When attorneys act as title agents, then they can act in your best interest and make sure that they’re working with the title company to guarantee a clean passage of the title.

If you’re looking to invest in real estate in a different province, you’ll be well-served to have a qualified and licensed attorney on your side. They can help you navigate the waters that can hold up many transactions with their insider knowledge of a province’s legal requirements and tax obligations. This type of knowledge is priceless in making for seamless real estate investment transactions regularly.

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Scott Dillingham

Scott Dillingham

I have been investing and lending to real estate investors for nearly 10 years now. After thousands of successful deals between flips, rent to owns, student properties and commercial assets I have developed a deep knowledge of real estate investments and have a passion of sharing this information with the world! If your looking for a lender who specializes in rental property financing you're going to want to connect with me at team@lendcity.ca.