Humber/Ontario Real Estate Course 4 Exam Practice

Why should a lawyer be consulted in the process of buying or selling real estate?

1. To create marketing materials for the property

2. To conduct open houses

3. To review contracts and close transactions

4. To manage property listings

5. To negotiate directly with real estate salespersons

6. To follow REBBA Code of Ethics

The correct answer is: To review contracts and close transactions

Consulting a lawyer during the process of buying or selling real estate is crucial primarily for the review of contracts and the facilitation of transaction closures. Real estate transactions involve complex legal documents that need to be carefully interpreted to ensure that all terms and conditions are clear and enforceable. A lawyer’s expertise helps in identifying any potential legal issues that could arise from the contracts, such as contingencies, disclosures, or liabilities, which ensures that the interests of the buyer or seller are protected throughout the process. In addition to reviewing contracts, a lawyer can assist in the closing process by ensuring that all necessary documentation is in order, title searches are completed, and that title transfers occur without any encumbrances or legal disputes. This legal oversight is essential in minimizing risks and assuring that the transaction complies with all applicable laws and regulations. Other options, such as creating marketing materials or managing property listings, pertain to the marketing and sales aspects of real estate, which do not require legal expertise and occur separately from the legal needs of the transaction. Likewise, negotiating with salespersons is typically handled by real estate professionals rather than lawyers. Consequently, the direct involvement of a lawyer in contract review and transaction closure is vital for a smooth and legally sound real estate process.