no escrow companies in Canada

[happyardy 0]

Hello,

When I talked to a lawyer today and explained to him that escrow companies assist in double closings, distribution of funds etc, he said that we dont have escrow companies here, atleast not in that sense. Also, he asked me why I couldnt do the double closing myself etc. Though I answered something, it wasnt a convincing answer. Can anyone let me know ?

Fellow Canadians, how do you guys do double closings etc ? Does your lawyer handle it for you ? The lawyer that I talked to today wasnt much aware of all this, though he was receptive to what I told him about creative RE stuff.

- Ardy

[rpoissa 0]

Well your lawyer was right in one aspect Ardy, there aren't really escrow companies in Canada (well I'm sure there are some but not many). You don't need them. Lawyers can do it all, but as you've just learned not all of them can do it. Of course a lawyer can do a double close, mine said "no problem". So I suggest you find another lawyer.

[Doug Pretorius (ON) 9]

Yup, lawyers do it all 'round here. When asking them if they can do a double close just make sure you specify that you want to buy and resell the SAME property on or about the same day.

 

Early on I talked to a lawyer and he was like: "Sure, there's no problem with buying one house and selling another the same day." LOL

[happyardy 0]

Yup, lawyers do it all 'round here. When asking them if they can do a double close just make sure you specify that you want to buy and resell the SAME property on or about the same day.

 

Early on I talked to a lawyer and he was like: "Sure, there's no problem with buying one house and selling another the same day." LOL

 

 

Thanks for the answers. I am meeting with another one on Thursday and will remember to mention about same house, same day. Lets see.

- Ardy

[rpoissa 0]

Ardy, Please don't tell me you are paying for this meeting? You could spend thousands "interviewing" (read educating) lawyers! Make a list of things you want to do and email to him and ask if he can help. I'd atleast get a "yes" before I met and paid money to him. Rob

[happyardy 0]

Ardy, Please don't tell me you are paying for this meeting? You could spend thousands "interviewing" (read educating) lawyers! Make a list of things you want to do and email to him and ask if he can help. I'd atleast get a "yes" before I met and paid money to him. Rob

 

 

Rob,

Thanks for your concern. No, I am not paying them. Most of them have the first consultation visit(around 30 minutes) for free. Anyways, I had appointments from just 2 lawyers and I am done with one. The next one is Thursday(tomm.) and then I'll just fix one and start working with him. Gotta start somewhere and really dont want to waste more time interviewing(as you said, educating) lawyers. Both, the lawyer and myself can learn along the way, once we start.

- Ardy

[happyardy 0]

Ardy, Please don't tell me you are paying for this meeting? You could spend thousands "interviewing" (read educating) lawyers! Make a list of things you want to do and email to him and ask if he can help. I'd atleast get a "yes" before I met and paid money to him. Rob

 

 

Rob,

Thanks for your concern. No, I am not paying them. Most of them have the first consultation visit(around 30 minutes) for free. Anyways, I had appointments from just 2 lawyers and I am done with one. The next one is Thursday(tomm.) and then I'll just fix one and start working with him. Gotta start somewhere and really dont want to waste more time interviewing(as you said, educating) lawyers. Both, the lawyer and myself can learn along the way, once we start.

- Ardy

 

Met with the 2nd lawyer today. He raised many issues. He mentioned that eviction wasnt so easy here. Also said that the seller could have many judgements(did he mean liens ?) and I may not find out till I am ready to close etc. Also said some stuff about the mortgage needing to be assumable and what I'm planning to do comes very close to brokering etc. Said that if I do quite a few houses then the RE commision might come after me. I may qualify as a dealer(is that bad ?..probably the only issues being a dealer would be tax issues ?..i mean there cannot be a limit on how many houses an individual/company can buy and sell in a fixed time frame..especially since the entity would be in the principal in the agreements, right ?)

Anyways, he asked me to get myself thoroughly familiar with the Landlord-Tenants act in NL and property laws so that we both would be on the same page.

I'll do it but arent lawyers supposed to do that? I mean how will I know everything about the law given that I dont have a law background ? Isnt he supposed to give me solutions to all the problems he mentioned cuz one thing that I know; there definitely are workaround solutions to most of the problems.

Not that he was unco-operative but I would want someone who understands what I want to do and give me ways to do it instead of saying that this cannot be done here.

I wish I would be done with this whole lawyer thing quickly so that I can spend time doing what really matters(calls etc).

- Ardy

[Doug Pretorius (ON) 9]

Hey Ardy... Welcome to Canada!

 

Isnt he supposed to give me solutions to all the problems he mentioned

Nope, it's a lawyer's job to FIND problems and tell you that you're insane! Oh and charge you $250/hr for the trouble

 

Well, why don't we take his "issues" one at a time:

 

1. Eviction isn't so easy here.

It ain't that easy in most US states either, bub.

 

2. Seller could have judgements/liens.

Do a title search, then register an agreement for sale on the property. Problem solved.

 

3. Mortgage needs to be assumable.

Pure BS.

 

4. This comes very close to brokering.

This guy must have got his law degree from one of those online diploma mills. You are a PRINCIPLE, nuff said.

 

5. The RE commission might come after you.

And if they do I'm going to tell them that my lawyer who advised me to do these deals, is sleeping with the commissioner's wife.

 

6. You may qualify as a dealer.

All that means is you have you declare you flipping profit as income rather than capital gains.

[happyardy 0]

Hey Ardy... Welcome to Canada!

 

Isnt he supposed to give me solutions to all the problems he mentioned

Nope, it's a lawyer's job to FIND problems and tell you that you're insane! Oh and charge you $250/hr for the trouble

 

Well, why don't we take his "issues" one at a time:

 

1. Eviction isn't so easy here.

It ain't that easy in most US states either, bub.

 

2. Seller could have judgements/liens.

Do a title search, then register an agreement for sale on the property. Problem solved.

 

3. Mortgage needs to be assumable.

Pure BS.

 

4. This comes very close to brokering.

This guy must have got his law degree from one of those online diploma mills. You are a PRINCIPLE, nuff said.

 

5. The RE commission might come after you.

And if they do I'm going to tell them that my lawyer who advised me to do these deals, is sleeping with the commissioner's wife.

 

6. You may qualify as a dealer.

All that means is you have you declare you flipping profit as income rather than capital gains.

 

 

Doug,

Thanks a lot for those answers.

I really knew most of them but my problem was that since he was the lawyer and all, I just kept quiet, listened and at times made weak attempts to make my points.

Anyways, I'm planning to go over the Landlord-Tenants Act that we have here in NL and then email back to this lawyer.

- Ardy

[Doug Pretorius (ON) 9]

Why bother emailing him just to educate him about what the actual LAW says? Is he the last lawyer in the phonebook? I wouldn't waste another second with him.

[MichaelC 160]

Why bother emailing him just to educate him about what the actual LAW says? Is he the last lawyer in the phonebook? I wouldn't waste another second with him.

Ardy, I couldn't have said it any better than Rob and Doug already have. There are no shortage of lawyers on the planet. Find one who thinks along the same lines you do, and who doesn't view what we do as borderline criminal activity.

[happyardy 0]

Why bother emailing him just to educate him about what the actual LAW says? Is he the last lawyer in the phonebook? I wouldn't waste another second with him.

Ardy, I couldn't have said it any better than Rob and Doug already have. There are no shortage of lawyers on the planet. Find one who thinks along the same lines you do, and who doesn't view what we do as borderline criminal activity.

 

 

Yeah, it makes sense.

My only concern was that how many lawyers would I need to "interview" before I find someone who thinks along the same line as I do. But yeah, educating one also isnt going to be any less time-consuming. Plus there is no REIA here in St. John's. Both the lawyers, when I asked them if they did any RE investments themselves said "No".

Anyways, as Rob has said, I'll compile a list of questions and mail it to a number of RE lawyers from the Yellow pages. It will be quicker that way instead of making appointments and talking to them and finding out that they have a lot of concerns.

Analogy : Making offers without seeing the properties. Sell the homeowner on the idea of lease-options first & get them to sign on the agreements before meeting them for looking at the house etc.

- Ardy

[Doug Pretorius (ON) 9]

Ardy, the main things you want to know from any lawyer are:

 

a) Do they do creative investing themselves?

If not, what creative transactions have they done for clients?

c) If neither, are they at least familar with some of these concepts: double closing, lease/option, agreement for sale etc. And open-minded toward them?

 

You can't just ask them if they invest in real estate because 99% of people who invest, do so traditionally, which won't help you anymore than these first two lawyers you've interviewed.

[happyardy 0]

Ardy, the main things you want to know from any lawyer are:

 

a) Do they do creative investing themselves?

If not, what creative transactions have they done for clients?

c) If neither, are they at least familar with some of these concepts: double closing, lease/option, agreement for sale etc. And open-minded toward them?

 

You can't just ask them if they invest in real estate because 99% of people who invest, do so traditionally, which won't help you anymore than these first two lawyers you've interviewed.

 

 

Thanks, Doug.

Yeah. I'll get an email out. Lets see what happens.

- Ardy

[happyardy 0]

Ardy, the main things you want to know from any lawyer are:

 

a) Do they do creative investing themselves?

If not, what creative transactions have they done for clients?

c) If neither, are they at least familar with some of these concepts: double closing, lease/option, agreement for sale etc. And open-minded toward them?

 

You can't just ask them if they invest in real estate because 99% of people who invest, do so traditionally, which won't help you anymore than these first two lawyers you've interviewed.

 

 

Thanks, Doug.

Yeah. I'll get an email out. Lets see what happens.

- Ardy

 

 

I have sent out an email to 19 firms. Lets see how the reponse is.

Would this emailing with specific questions work for finding a cooperative RE agent, mortgage broker etc. ? I think it would.

- Ardy