The Legal Process of a Real Estate Deal: What to expect from your Lawyer (Part 3)
Continuing on our series of articles “The Legal Process of a Real Estate Deal: What to expect from your Lawyer”, our third topic covers the process of a refinance. To be consistent with our previous blogs in this series, we have divided the legal process of refinancing your property into three main steps: compiling information, preparing the documents, and completion.
- Gathering information about the Property and the existing mortgage:
Once we receive lending instructions from your bank, we open a file and conduct the necessary searches. The mortgage instructions will show us the terms of the new mortgage and specific details on how to prepare the new loan. The instructions will also show if any existing debts need to be paid (ie: credit cards, vehicle loans, etc.), before the new loan can be funded. This is in addition to any existing mortgages you may have registered on title. Similar to a purchase transaction, the lender will require an insurance binder and title insurance.
- Preparing Refinance documents:
We prepare the mortgage documents for you to sign at your appointment, which include the Form B Mortgage and additional documents provided by the lender. If an existing mortgage needs to be paid out, we request a payout statement from the bank and include this amount in the Order to Pay, which shows how funds are being disbursed.
- The Funding Date – Completing the Process:
On the completion date, the lender will deposit the mortgage funds into our trust account. Once the Form B Mortgage is registered with the Land Title Office, we will use this amount to pay out everything required and then forward the remaining funds to you, if applicable.
Our dedicated team of real estate lawyers at Segev LLP is committed to ensuring that the process of refinancing your property completes as smoothly as possible and that you remain informed throughout the entire process.