A couple of weeks ago I received a call from a client whose mortgage deal closed about four months ago. She needed help with a problem she had with her lawyer. She also wanted MonsterMortgage.ca to tell her story so that other consumers don’t get burned when purchasing their property.
After living in her new property for a few months she received her property tax bill but it was under the previous owner’s name. When she called the city to have the name on the bill changed to her name she was told by the city that they could not do that because their records showed that she wasn’t the person on title…basically, she was told that she didn’t own the house she was living in and paid for.
WHAT WENT WRONG?
When her deal closed, she gave her lawyer money for the land transfer tax, legal fees and title insurance. Her lawyer gave her keys to the property and all seemed good. The vendor had received their deposit from the buyer (my client) and the remainder of the funds from the lender for the purchase of the home. THE PROBLEM. Rather than registering the property with the city, the lawyer took the funds my client gave to them for the land transfer tax, title insurance and legal fees (for work not done) and walked. The lawyer never used the money to pay the land transfer tax and as result didn’t register the mortgage with the city!!! My client is now working with a new lawyer to reclaim the home that she bought, put a down payment on, is paying mortgage payments for and has been living in for the past four months but is not on record for being the owner.
In this video I interview Tony Spagnuolo, a real estate lawyer with Spagnuolo Professional Corporation. He explains the role a lawyer plays in a mortgage transaction and what you should look for to ensure you don’t get burned.BACK TO BLOG FEED