By Mark Weisleder, Senior Partner RealEstateLawyers.ca LLP

As we enter into 2025, here are five New Year’s resolutions for you to make, to protect both yourself and your clients this coming year.

1 – Review title search before going on a listing

I have seen too many deals where there is not enough money on closing to pay the seller lender and then the deposit has to be requested from the brokerage to be able to get the deal closed. Then the brokerage has to sue for commission and the seller likely has no money to pay. By searching the title in advance, you can see the face amount of any mortgage and you may also learn for example, if CRA is owed money for income tax arrears. Ask for statements to make sure there is enough equity to pay any debts and commissions.

2 – Be specific on any rental contract

It is not enough to just put furnace rental is $100 a month in the agreement of purchase and sale. Make sure the contract can be assumed. Suppliers have refused to transfer the contract and then the seller has to buy it out, at their expense. Clearly state that the buyer will sign any document required to assume the rental contract before closing. If not signed, it is a nightmare after closing having the contract transferred, and the rental company can still try and collect from the seller.

3 – Ask about the keys and make sure the seller provides two sets on closing

Never assume that the buyer will receive two sets of keys and garage door openers, draft a clause to protect your client. If a condominium FOB has to be obtained from the management company in return for a security deposit, let the buyer know this will have to be done after closing. Don’t forget to include the mailbox key, or let the buyer know if they will have to obtain one directly from Canada Post after closing.

4 – Stay involved in the deal until closing

Besides making sure that all deposits are paid and conditions waived in a timely manner, anticipate potential closing issues and deal with them. If you know a seller has to complete work on the property before closing, or remove debris, do not wait until the last minute. Be a pest. This will save a lot of potential headaches on closing. If there is any damage noticed at the final pre-closing visit, take a picture, get an estimate and try to make a deal to get it resolved.

5 – Get expert advice, when you need it

If you are not sure about anything during your negotiations, whether it is an issue related to foreign buyers, zoning, HST, condominium status certificates or basement apartments, then do not be nervous to ask for assistance. I am often consulted precisely for this kind of timely assistance. Or consider making the offer conditional upon buyer or seller lawyer approval.

I wish all of you a very happy, healthy and prosperous 2025.