Acquisitions & Dispositions

About the service

A commercial property sales transaction in Ontario involves multiple steps, each of which requires careful attention and expertise. Working with a real estate lawyer can help ensure that each phase of the process is handled efficiently and in compliance with legal requirements. Here’s an expanded overview of the key steps involved:

1. Initial Consultation and Planning:Before the transaction begins, you will meet with your real estate lawyer to discuss your goals and plan the sale. This step includes:

• Understanding Objectives: Clarifying your objectives, whether you are aiming for a quick sale, maximizing profit, or other specific goals.
• Preliminary Assessment: Reviewing the property’s current market value and potential issues that may need to be addressed before listing.

2. Preparing the Property for Sale:Your lawyer will assist in ensuring that the property is ready for sale, which may involve:

• Due Diligence: Conducting a thorough review of the property’s title to identify and resolve any issues such as liens, easements, or encumbrances.
• Compliance Checks: Ensuring the property complies with all zoning laws, building codes, and environmental regulations.

3. Drafting the Agreement of Purchase and Sale:The agreement of purchase and sale is a crucial document that outlines the terms of the transaction. Your lawyer will:

• Customization: Tailor the agreement to meet your specific needs and protect your interests.
• Negotiation: Negotiate terms with the buyer’s legal team to ensure favorable conditions.

4. Marketing and Listing the Property:While the real estate agent handles the marketing and listing of the property, your lawyer can provide support by:

• Reviewing Marketing Materials: Ensuring that all marketing materials accurately represent the property and do not contain misleading information.
• Legal Disclosures: Preparing necessary legal disclosures that must be provided to potential buyers.

5. Handling Offers and Negotiations:When offers start coming in, your lawyer will:

• Offer Review: Review each offer to ensure it meets your requirements and is legally sound.
• Counteroffers and Negotiations: Assist in formulating counteroffers and negotiating terms to achieve the best possible outcome.

6. Due Diligence Period:Once an offer is accepted, the buyer typically conducts due diligence. Your lawyer will:

• Facilitate Inspections: Coordinate property inspections, environmental assessments, and other due diligence activities.
• Address Issues: Address any issues that arise during due diligence, negotiating adjustments to the agreement if necessary.

7. Financing and Closing Preparation:As the closing date approaches, your lawyer will ensure all financial and legal aspects are in order:

• Document Preparation: Prepare all necessary legal documents for closing, including the deed, bill of sale, and closing statements.
• Financial Coordination: Work with your financial institutions to ensure that funds are transferred and financing conditions are met.

8. Closing the Transaction:The closing is the final step in the transaction. Your lawyer will:

• Final Review: Conduct a final review of all documents to ensure accuracy and completeness.
• Funds Transfer: Facilitate the transfer of funds from the buyer to the seller.
• Title Transfer: Ensure the legal transfer of title is properly executed and recorded.

9. Post-Closing Activities:Even after the closing, your lawyer’s work may continue with activities such as:

• Dispute Resolution: Handling any post-closing disputes or issues that arise.
• Document Filing: Ensuring all necessary documents are filed with the appropriate government agencies.

By partnering with a real estate lawyer, you can navigate each step of a commercial property sales transaction in Ontario with confidence, knowing that your interests are protected and the process is compliant with all legal requirements.

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