Yes, all purchase and sale of real estate in Manitoba requires the services of a lawyer. In most cases the buyer and seller will each have their own lawyer, however, in certain circumstances the same lawyer may be retained for both.

The lawyer will assist in preparing and reviewing purchase or sale contract documents and registering documents in land titles. If you are purchasing a house, the lawyer will often assist in preparing and reviewing the mortgage documents on behalf of your bank or credit union.

Clients are often told to allocate between 2.5% to 3% of the purchase price of their new home towards their closing costs. This means that if their new house costs $300,000 then they should have at least $9,000 available before the scheduled possession date. Although this number is a helpful guide it doesn’t fully account for some hidden costs that can be quite substantial and that may increase your closing costs beyond the estimated 3%.

Land Transfer Tax: One of these hidden costs is the land transfer tax which in Manitoba is a one-time tax based on a percentage of the value of your house. Unless the seller specifically agrees to pay this, it is expected that the buyer will cover this cost.

Other Factors: The amount of your closing costs will also depend on what expenses your lawyer is required to make on your behalf (as directed by your lender) and on what portion of the purchase will be financed by a bank or credit union and what portion will be paid by you.

If you are planning to use any investments for your closing costs, it is recommended that you contact your bank or credit union at least 2 weeks before the possession date so that arrangements can be made to withdraw these funds.

Your lawyer will let you know the exact amount you will need to bring in for closing costs when you come in to sign the documents. If you are unsure of how much to set aside, it is recommended that you contact your lawyer early on so they can give you an estimated amount.

In most cases where a realtor is involved you will only see the lawyer once all the conditions in the offer have been met such as approval of financing or inspection of the house.

If there is no realtor, you will typically be in contact with the lawyer from the start to help prepare an offer or review an offer you have received from an interested buyer. In most cases the lawyer will only get involved once there has already been some form of agreement between the buyer and seller as to the price. They do not typically get involved in the negotiation state, however, please contact your lawyer to discuss your specific situation if you have any questions about this.