Humber/Ontario Real Estate Course 3 Exam Practice

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Which of the following is a correct statement about the legal services provided by lawyers in real estate transactions?

The seller's lawyer completes the title search and prepares the statement of adjustments.
A lawyer may be involved in providing advice to a seller prior to a residential property being listed.
The buyer's lawyer completes the title search, but is not involved in other searches relating to work orders, tax arrears, etc.
The buyer's lawyer is not involved in arranging title insurance, as buyers must do so directly with a title insurance company.
The seller's lawyer handles all communication with the buyer's lawyer.
The buyer's lawyer only handles the final closing documents.

The correct answer is: A lawyer may be involved in providing advice to a seller prior to a residential property being listed.

The correct statement about the legal services provided by lawyers in real estate transactions is that a lawyer may be involved in providing advice to a seller prior to a residential property being listed. Lawyers play a significant role in real estate transactions, and their expertise can be invaluable early in the selling process. Before a property is listed, sellers may require legal guidance on various matters, such as reviewing the property title, understanding potential legal liabilities, and discussing implications of certain disclosures. Having a lawyer involved at this stage helps ensure that the seller is fully informed about their rights, obligations, and any legal considerations that could impact the sale. This proactive legal involvement can help prevent problems later in the transaction process, making it an essential service that many sellers choose to utilize. In contrast, other statements refer to specific legal responsibilities that may not reflect the full scope of a lawyer’s involvement or responsibilities in real estate transactions. For instance, the seller's lawyer handling the statement of adjustments is common, but that doesn't encompass the breadth of duties attorneys can provide prior to listing. Additionally, the notion that the buyer's lawyer is not involved in additional searches or in arranging title insurance oversimplifies the comprehensive legal services typically rendered during a transaction.