Why is there a “Lawyer Review” clause in my real estate Purchase and Sale Agreement Nova Scotia?

There are a few sets of “conditions” in the standard Agreement of Purchase and Sale created by the Nova Scotia Real Estate Commission and used by licenced Realtors. Some are standard for all agreements, and some are specific to certain types of properties (condos, water and septic, or vacant land for example).

One condition that is always available is the “Lawyer Review” clause. The primary purpose of this clause is to give your lawyer a chance to review your contract for form and content before the contract is binding so that if there are any issues they can be addressed to both parties satisfaction.

Review of Purchase and Sale Agreement

When reviewing your Agreement of Purchase and Sale, among other things, your lawyer will confirm:

• That there are no missing signatures or initials;

• That the names of the sellers match the contract and the actual ownership of that land at the Registry of Deeds;

• That the address and Property ID (PID) are the same on both the Agreement of Purchase and Sale and at the Registry of Deeds;

• That there are clear and reasonable timelines, both the closing date and for any conditions to be met;

• That any clauses added by the parties would provide sufficient clarity in case of dispute;

Review of Title to the Property

Our firm also takes this opportunity to do a title review before the Lawyer Review Clause expires. Our title review looks at, among other things:

• Whether or not the property is migrated to the Land Registration system (if you don’t know what migration is check out our migration blogs listed below);

• Access to the Property (for example is it Public or via an easement)

• Whether there are any easements burdening the Property (for example a shared driveway with a neighbouring property)

• Whether advertised easements are documented properly (for example if you are buying a properly claiming an easement to a lake, we confirm that there actually is such an easement recorded on title);

• Whether there are any other easements benefiting the Property;

• Whether there are any restrictive covenants;

• Whether there are any Liens or judgments registered against the Property;

• And if it’s a condo, we look at the declaration, by-laws and reserve fund information.

If an issue is noted, your lawyer will contact you and explain the situation and what your options are.

If you only give the Agreement of Purchase and Sale to your lawyer after the “Lawyer Review” clause date has passed, you lose the opportunity to object to any issues there may be. For that reason, we always advise clients to get their Agreement of Purchase and Sale to their real estate lawyer as soon as possible.

If you’d like to read more about important considerations during the purchase/sale process, check out our blogs:

• What is a "migration" and why do you care?

• “But there wasn’t time” Things to consider when making the biggest purchase of your life.

• How to resolve issues that arise on closing day walk-through for a property transaction in Nova Scotia.

• Why Do I Have to Hire a Lawyer to Buy or Sell Land in Nova Scotia?

• 4 Tips to Make Your Property Purchase In Nova Scotia Stress free

• How do I change the title ownership name on my property deed in Nova Scotia?

• Condominiums: What is a reserve fund, and why should you care when buying a Condo in Nova Scotia?

• Understanding Deed Transfer Tax When Purchasing Property in Nova Scotia

 By: Briana C. O’Grady J.D

Have Questions For Us?:

If you have any questions you can call us at (902) 826-3070 or email us at info@highlanderlaw.ca to set up a meeting with one of our lawyers at our Tantallon law firm. You can also schedule a no commitment Issue Review Consult for $250+HST where you have the opportunity to explain your situation to a lawyer and get basic advice, before deciding whether or not you'd like to retain us.

The information and materials on this blog are provided for general informational purposes only and are not intended to be legal advice. Nothing contained on this blog is legal advice or constitutes a legal opinion. While it is our goal to provide information which is current, legislative changes and court decisions, among other matters, may result in some information no longer being current or accurate. You should consult a lawyer before relying on any information. The views expressed herein by individual contributing lawyers posting entries to the blog are solely those of the authors and should not necessarily be attributed to or considered representative of the firm of Highlander Law Group Lawyers