Real Estate and Land Development

Without lawyers, a real estate transaction can have the parties to the transaction can end up in a circular argument as to who is to act first. In most situations, a vendor does not want to provide transfer documents to a purchaser prior to getting the money from the purchaser, and the purchaser likely does not want to provide the money (or, if they have a mortgage, they likely cannot) until they receive clear title in their name.

The use of lawyers helps break the circular cycle. The lawyer for the vendor provides the transfer documents to the purchaser’s lawyer on trust conditions, a series of conditions which the purchaser’s lawyer must accept and meet prior to using the transfer documents, It is only upon accepting the trust conditions, and in doing so they promise payment will follow, that the vendor’s lawyer can use the transfer documents. If the vendor has a mortgage, the vendor’s lawyer’s trust conditions will include an undertaking, or promise, to payout and have the mortgage discharged from the title.