Humber/Ontario Real Estate Course 4 Exam Practice

What legal role does a lawyer serve in the transaction process for buyers and sellers?

1. Seller's lawyer arranges title insurance

2. Advise sellers pre-listing

3. Conduct only the title search

4. Prepare mortgage documents

5. Complete buyer's due diligence process

6. Not responsible for title issues

The correct answer is: Advise sellers pre-listing

The most appropriate answer highlights the role of a lawyer in providing legal advice to sellers before they list their property. This is significant because it encompasses the lawyer's responsibility to guide sellers through the pre-listing process, ensuring that they understand any legal considerations or obligations related to the sale. A lawyer will typically advise sellers on matters such as potential liabilities, compliance with local regulations, and necessary disclosures to potential buyers. This guidance is crucial in preparing the seller for a successful transaction and helps mitigate risks associated with legal issues that may arise during or after the sale. Although other roles, such as arranging title insurance or preparing mortgage documents, are important within the real estate transaction process, they do not encompass the full scope of a lawyer's advisory role before a property is listed. Similarly, conducting title searches or completing due diligence processes can be part of a lawyer's function, but these tasks often occur later in the transaction rather than during the initial pre-listing phase.