Mortgage Glossary

Legal Fees

The lending institutions require you to have a lawyer or notary prepare and register the mortgage contract. You can usually choose your own lawyer as the fees can vary it is wise to shop around.

Some lenders will insist on you paying for two separate lawyers - one to represent the lender and one to represent your interests. When only one lawyer is used by both parties he or she will not represent either party should a dispute arise.

You may wish to have your lawyer review your purchase agreement as a condition of your offer. It is recommended that a lawyer be involved with the negotiations from the beginning if you are purchasing privately (without a Realtor), or if the property is under foreclosure.

Prior to completion date, the lawyer will set up a meeting with you to explain the mortgage documents and witness your signature. He or she will also give you a statement of adjustments and disbursements detailing the various amounts of money you have to pay to complete the transaction.

Avoid 'deals' arranged by lenders where only your signature is witnessed and you are not represented by a lawyer. You may save a couple of hundred dollars, but the legal representation is worth it when you are borrowing large amounts of money.

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