What is the difference between a real estate lawyer and a mortgage lawyer?

Think of it like a dentist vs. an orthodontist. A dentist is a medical professional trained to look after your whole mouth, while an orthodontist focuses specifically on correcting issues with your teeth. A real estate lawyer is part of all real estate transactions, and they focus primarily on the transaction as a whole, such as communicating between buying and selling parties, and registering title on the property. A mortgage lawyer though focuses almost exclusively on mortgages. They can help navigate specific mortgage issues, such as working with private lenders, obtaining a second or third mortgage, or enforcing a mortgage that has gone unpaid for some time. 

What sort of ID will I need to provide for my real estate lawyer?

Lawyers in Ontario are always required to keep a record of their client’s ID, but it is especially important in real estate law to ensure that the right person is granted ownership of the property. You will need to provide your real estate lawyer with either two pieces of primary identification (i.e: Ontario drivers’ license, passport, Canadian citizenship card), or one piece of primary identification along with one piece of secondary identification (i.e: birth certificate, social insurance card, major credit card).

What is a reverse mortgage?

A reverse mortgage is a financial tool usually promoted to homeowners over age 55 that allows them to live off of a portion of the equity in their home in the form of tax-free payments. The homeowners are able to effectively borrow that amount of equity, which can then be used for living expenses through one’s retirement.

There are benefits and drawbacks to a reverse mortgage. For example, reverse mortgages are designed for homeowners intending to live in their homes for the rest of their lives. Payment becomes due when the home is sold or the last homeowner dies, which may be problematic if you are looking to sell your home during your lifetime. Your mortgage lawyer can help you determine if a reverse mortgage is right for you

What is a ‘power of sale’ vs a ‘foreclosure’?

When mortgage obligations go unfulfilled and a mortgage falls out of good standing, the mortgagee has two customary options of how to proceed. Yet while both processes involve similar legal steps, the results can have very different outcomes. 

In a power of sale, the mortgagee (lender) is required to sell the property once a mortgagor defaults and is unable to meet their obligations. The mortgagee must sell the property at fair market value, and once they have recovered their debts from the proceeds, any additional funds go directly to the previous homeowner. Conversely, in foreclosure, the mortgagee actually reclaims title to the property, and thus they may keep any proceeds that result from its subsequent sale.