Real Estate Lawyer for Buying New Home

[Morning Wood]

Hi Guys,

Got a family member who wants to sign a purchase agreement on a new townhome (hasn't been built yet). Before she does, was looking to have a lawyer review the contract with her. Was wondering a couple things:

1) in CP's experience, was the use of a lawyer worth it?
2) if so, recommendations would be appreciated

Thanks!

[albertGQ]

Troutman

[Fighting Banana Slug]

For a yet to be built home, I would recommend a lawyer for sure. These transactions can have some wrinkles that may not be obvious to the layperson. In particular, the way the market is right now, builders could be going belly up in the near future.

[zzibradleyizz]

I am curious what the lawyer would be able to do for you in the event a builder goes bankrupt. I purchased a new condo in 2012 from Valmont at Aspen Stone, Unity Builders Group (UBG) and they filed for bankruptcy protection 5 months after I signed my purchase agreement. The development sat untouched for over a year and I literally couldn't do anything. Couldn't cancel my contract or get my deposit back as everything was tied up in the courts. UBG failed to restructure and they sold the development to a new developer, who then demanded more money ($10,000) or they would cancel my contract. I paid it since the condo was still worth more then the revised purchase price.

I learned a valuable lesson that the courts will protect the developers and not care about the purchasers. Just not sure what the difference would of been if I hired a lawyer to review the contract from the beginning. Would love to have someone chime in so I can better prepare myself for the future.

[mrkajz44]

Not sure there is a way to be protected from something like that. Building companies are set up such that each new development is its own partnership. As, if something goes wrong, you can really only go after the partnership assets, which is usually nothing (or very little and not worth pursuing). Some companies will pay money back as a gesture of goodwill for their company name, but others do not.

[squiggs96]

Here's another example of what I like on CP, where a longtime member such as troutman gets referrals. He was a Flames fan and CP member first, and then let people know his name and what he does. After doing a good job for some CP members, his reputation increased, and now whenever a thread like this pops up, he's the guy people recommend. The same can be said for Locke, pylon, and a few others. It makes me happy.

Some of the posters with sponsored forums really only stay there, don't talk hockey, and their first post just said to come buy their stuff. The hockey, and off topic, talk seems forced. I have nothing against earning sponsor money, but the above examples are my preferred way of seeing people's businesses grow.

[OMG!WTF!]

Originally Posted by zzibradleyizz

I am curious what the lawyer would be able to do for you in the event a builder goes bankrupt. I purchased a new condo in 2012 from Valmont at Aspen Stone, Unity Builders Group (UBG) and they filed for bankruptcy protection 5 months after I signed my purchase agreement. The development sat untouched for over a year and I literally couldn't do anything. Couldn't cancel my contract or get my deposit back as everything was tied up in the courts. UBG failed to restructure and they sold the development to a new developer, who then demanded more money ($10,000) or they would cancel my contract. I paid it since the condo was still worth more then the revised purchase price.

I learned a valuable lesson that the courts will protect the developers and not care about the purchasers. Just not sure what the difference would of been if I hired a lawyer to review the contract from the beginning. Would love to have someone chime in so I can better prepare myself for the future.

I think that builder bankruptcy is covered under Alberta New Home Warranty...the builder performance something or other. I've heard the National Home Warranty doesn't have as good a policy as Alberta. Might not help you in this case but that is really the only recourse you have in a bankruptcy. Sorry about your situation but sounds like you have a nice place in a great part of the city.

[Slava]

Originally Posted by squiggs96

Here's another example of what I like on CP, where a longtime member such as troutman gets referrals. He was a Flames fan and CP member first, and then let people know his name and what he does. After doing a good job for some CP members, his reputation increased, and now whenever a thread like this pops up, he's the guy people recommend. The same can be said for Locke, pylon, and a few others. It makes me happy.

Some of the posters with sponsored forums really only stay there, don't talk hockey, and their first post just said to come buy their stuff. The hockey, and off topic, talk seems forced. I have nothing against earning sponsor money, but the above examples are my preferred way of seeing people's businesses grow.

Some of us do both and were long time posters before we sponsored forums!

[squiggs96]

Originally Posted by Slava

Some of us do both and were long time posters before we sponsored forums!

That's why I said some, not all. There are too many people to list each one individually, so I just the term 'and a few others'. There are/were some really forced ones in the sponsored section though, that don't act like you at all.

[Slava]

Originally Posted by squiggs96

That's why I said some, not all. There are too many people to list each one individually, so I just the term 'and a few others'. There are/were some really forced ones in the sponsored section though, that don't act like you at all.

No I know what you mean. I was a long time poster before the sponsorship and truthfully its a tough line to walk sometimes. I was here for the forum and Flames first and the business aspect came a distant 3rd/4th, but then why not mix the two. I'm sure I'm not the only one who finds some of the sponsored forum owners a little disingenuous because they have no willingness or interest in the actual community side of things. I'll just leave it at that though.

[GreenLantern]

I can speak from experience you absolutely 100% need to get a lawyer to look over that contract before you sign it. We made the mistake of trusting a 'family friend' and we are still dealing with it now having moved in already 5 months ago. There are definitely a lot worse cases to look at than ours, but still just spend the money and get the lawyer. And make sure you have a paper trail for everything, any time you have a conversation over the phone get him to sum it up in an email to you, just point form. So you have something that you can point back to when the inevitable wrinkles surface. But I am sure the pros like troutman will help you out with all that.

[fundmark19]

+ 1 for Troutman I have used him on a real estate transaction. I have also used these guys http://crowemackay.ca/ and happy with them as well.

[squiggs96]

Originally Posted by fundmark19

I have also used these guys http://crowemackay.ca/ and happy with them as well.

This was the last place I worked in Calgary before I moved to Vancouver. There are some great people there. There are also some dick balls there too, so stay away from them. The OMP is also a huge Flames fan, and is a STH. He's a great guy.

[troutman]

Some people (let's call them Engineers) think that a lawyer can 100% protect them from every future contingency. We do our best, but there are no guarantees. #### happens.