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Residential Real Estate Conveyancing

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Residential Real Estate Conveyancing BEST PRACTICE MANUAL Residential Real Estate Conveyancing The material is this manual is for illustration purposes only and is not to be copied or shared. Some of the information is compiled from the following sources: Continuing Legal Education Society Law Society of British Columbia of British Columbia Practical Legal Training Course Conveyancing Deskbook Real Estate Practice Manual The Society strongly recommends that its members subscribe to the CLE course materials noted above. ENCOURAGING BEST PRACTICE FOR BC NOTARIES 1 April 2009 Index RESIDENTIAL REAL Estate CONVEYANCING ................................................... 4 Introduction ..................................................................................................................4 Relying on Staff.............................................................................................................5 Talking to your Client .....................................................................................................5 Taking Instructions ........................................................................................................6 Scope of the Retainer ...................................................................................................7 Multiple Clients .............................................................................................................8 Consent/Conflict of Interest ..........................................................................................8 Independent Legal Advice ..........................................................................................11 Undertakings ..............................................................................................................12 Transfer of Incorrect Property ......................................................................................13 Parking Stalls ..............................................................................................................13 TAX COnsideratiONS ...................................................................................... 15 Property Transfer Tax ..................................................................................................15 Non-Resident Sellers ..................................................................................................15 Purchaser’s Requirement to Inquire as to Residency .............................................16 How Much to Hold Back? .....................................................................................17 When to Remit? ....................................................................................................17 When Acting for the Seller .....................................................................................17 10-Day Reporting Requirement .............................................................................18 Goods and Services Tax .............................................................................................18 GST and Contracts of Purchase and Sale .............................................................20 Purchaser Rebates ...............................................................................................20 Property Tax Adjustments .....................................................................................21 Interest and Penalties ............................................................................................22 Special Levies and Local Improvement Charges ...................................................22 GatHERING INFOrmatiON ............................................................................... 24 Title Searches .............................................................................................................25 Legal Notations .....................................................................................................26 Reviewing Charges ...............................................................................................27 Duplicate Titles .....................................................................................................28 Miscellaneous Notes .............................................................................................28 Pending Applications ............................................................................................29 Electronic Filing .....................................................................................................30 Strata Property Searches ......................................................................................30 ENCOURAGING BEST PRACTICE FOR BC NOTARIES 2 April 2009 Municipal Tax Searches ........................................................................................31 Bylaw Compliance ................................................................................................32 Environmental Searches ........................................................................................33 Heritage Searches ................................................................................................33 Encroachments .....................................................................................................33 Notary’s Opinion Protocol ...........................................................................................34 Effect of Protocol ..................................................................................................34 What Constitutes a Compliant File? .....................................................................34 Checklist ...............................................................................................................35 General Procedure ................................................................................................35 Protocol Opinion Retention Policy .........................................................................37 Seller’s Marital Status ............................................................................................37 Corporate Sellers ..................................................................................................37 Insurance ..............................................................................................................38 CLOSING DOCUMENTS ..................................................................................... 39 Who Prepares Conveyancing Documents ...................................................................39 Usual Documents .......................................................................................................39 Statements of Adjustments .........................................................................................40 General Principles .......................................................................................................41 Adjustment Date .........................................................................................................41 Mortgage Assumption Adjustments ............................................................................41 Property Taxes ............................................................................................................43 Notes .........................................................................................................................43 Holdbacks ..................................................................................................................44 Trust Reconciliation .....................................................................................................44 Errors and Omissions Excepted ..................................................................................45 UndertaKINGS ................................................................................................. 46 Purpose of an undertaking ..........................................................................................49 Who can give an undertaking? ....................................................................................49 Who can release an undertaking? ...............................................................................49 WHEN THE DEAL IS COLLAPSING .................................................................... 50 Common Contractual Terms .......................................................................................50 Implied Terms .............................................................................................................51 BREACH ������������������������������������������������������������������������������������������������������������ 52 Anticipatory Breach ....................................................................................................53 TENDER ������������������������������������������������������������������������������������������������������������ 54 How and What to Tender ............................................................................................54 Caveats and Certificates of Pending Litigation ............................................................55 ENCOURAGING BEST PRACTICE FOR BC NOTARIES 3 April 2009 Residential Real Estate Conveyancing The focus of this manual is on practice and procedure, rather than substantive law. The manual includes procedural checklists and many forms and precedents required in basic conveyancing practice. It is up to you to exercise your professional judgment about the correctness and applicability of the material and you must also refer to the relevant
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