REAL ESTATE - Law Society of Ontario

1 Chair Joel Kadish Barrister and Solicitor December 9, 2016 REAL ESTATE Practice Basics 2016*CLE16-0120201-A-PUB*DISCLAIMER: This work appears as part of The Law Society of Upper Canada s initiatives in Continuing Professional Development (CPD). It provides information and various opinions to help legal professionals maintain and enhance their competence. It does not, however, represent or embody any official position of, or statement by, the Society , except where specifically indicated; nor does it attempt to set forth definitive practice standards or to provide legal advice. Precedents and other material contained herein should be used prudently, as nothing in the work relieves readers of their responsibility to assess the material in light of their own professional experience. No warranty is made with regards to this work. The Society can accept no responsibility for any errors or omissions, and expressly disclaims any such responsibility.

2 2016 All Rights ReservedThis compilation of collective works is copyrighted by The Law Society of Upper Canada. The individual documents remain the property of the original authors or their assignees. The Law Society of Upper Canada 130 Queen Street West, Toronto, ON M5H 2N6 Phone: 416-947-3315 or 1-800-668-7380 Ext. 3315 Fax: 416-947-3991 E-mail: and Archives Canada Cataloguing in PublicationReal ESTATE Practice Basics 2016 ISBN 978-1-77094-571-5 (Hardcopy)ISBN 978-1-77094-572-2 (PDF) 1 Chair: Joel Kadish Barrister and Solicitor December 9, 2016 9:00 to 12:30 Total CPD Hours = h Substantive + h Professionalism The Law Society of Upper Canada 130 Queen Street West SKU CLE16-0120201 Agenda 9:00 9:05 Welcome and Opening Remarks Joel Kadish, Barrister and Solicitor 9:05 9:30 The Agreement of Purchase and Sale (10 minutes ) Lorne Shuman, Isenberg & Shuman Professional Corporation REAL ESTATE Practice Basics 2016 2 9:30 9:55 Title Searching (5 minutes ) Joel Kadish, Barrister and Solicitor 9:55 10.

3 20 Title Insurance Lori Swartz, Legal Counsel, TitlePLUS Lawyers' Professional Indemnity Company (LAWPRO ) 10:20 10:45 Fraud (20 minutes ) Raymond Leclair, Vice-President, Public Affairs Lawyers' Professional Indemnity Company (LAWPRO ) 10:45 - 11:00 Coffee and Networking Break 11:00 11:25 Residential Mortgage Financing (5 minutes ) Zahra Ziaie Moayyed Ziaie Professional Corporation 11:25 11:50 Closing (5 minutes ) Tannis Waugh, Tannis A. Waugh Professional Corporation 11:50 12:15 Practical and Substantive Issues Arising in Residential Real ESTATE Transactions (15 minutes ) Joel Kadish, Barrister and Solicitor Raymond Leclair, Vice-President, Public Affairs Lawyers' Professional Indemnity Company (LAWPRO ) Lorne Shuman, Isenberg & Shuman Professional Corporation Lori Swartz, Legal Counsel, TitlePLUS Lawyers' Professional Indemnity Company (LAWPRO ) 3 Tannis Waugh, Tannis A.

4 Waugh Professional Corporation Zahra Ziaie Moayyed Ziaie Professional Corporation 12:15 - 12:30 Question and Answer 12:30 Program Ends 12: 12 12:30 949 Chair: Joel Kadish, Barrister and Solicitor December 9, 2016 9:00 to 12:30 Total CPD Hours = h Substantive + h Professionalism The Law Society of Upper Canada 130 Queen Street West Table of Contents TAB 1 The Agreement of Purchase and Sale .. 1 1 to 1 9 Lorne Shuman, Isenberg & Shuman TAB 2 Title Searching A Checklist .. 2 1 to 2 21 Parcel Register .. 2 11 Client Identification and Verification Requirements for Lawyers .. 2 12 REAL ESTATE Practice Basics 2016 Real ESTATE Practice Guide for Lawyers .. 2 13 (Link and Contents) LAWPRO Webzine - LAWPRO CEO: Six things I hate to read in a real ESTATE claim file .. 2 16 LAWPRO Fraud - Fact Sheet.

5 2 18 Joel Kadish, Barrister and Solicitor Tab 3 Introduction to Title Insurance .. 3 1 to 3 32 Policy of Insurance for First mortgage: SAMPLE 3 15 Lori Swartz, Legal Counsel, TitlePLUS Lawyers' Professional Indemnity Company (LAWPRO ) TAB 4 Fraud in Real ESTATE & 4 1 to 4 57 Recent Developments in Fraud .. 4 17 FRAUD Fact Sheet .. 4 40 Real ESTATE Fraud Being Creative and Fighting Back .. 4 41 Bad Cheque Scams .. 4 49 Real ESTATE Scams .. 4 50 Fraud Prevention .. 4 52 Raymond Leclair, Vice-President, Public Affairs Lawyers' Professional Indemnity Company (LAWPRO ) TAB 5 Residential Mortgage Financing .. 5 1 to 5 37 Prepared and presented by Karen Yolevski, Wellspring Financial for the Real ESTATE Practice Basics program held December 9, 2015. (Updated with new web links for 2016) Appendix A Standard Documents.

6 5 22 Appendix B Sample Registered Charge .. 5 28 Appendix C Sample Identification Form (pursuant to LSUC By-Law ) .. 5 31 Appendix D Undertaking to Discharge Mortgage .. 5 34 Appendix E Links to Useful Additional Resources .. 5 36 Presentation Summary .. 5 37 Presentation summary prepared and presented by: Zahra Ziaie Moayyed Ziaie Professional Corporation TAB 6 Let s Close a Deal! Closing Procedures for Residential Real ESTATE Transactions .. 6 1 to 6 66 Prepared and presented by Rebecca Hartley, City of Toronto Legal Services for the Real ESTATE Practice Basics program held December 9, 2015. Introduction .. 6 1 Preparing for Closing .. 6 2 Closing Documents .. 6 6 Preparation for Closing .. 6 14 Closing .. 6 17 Post-Closing and Reporting .. 6 23 Summary .. 6 26 Appendix 1 Critical Dates.

7 6 27 Appendix 2 Closing Agenda/Checklist .. 6 28 Appendix 3 Purchaser s Requisitions Letter .. 6 29 Appendix 4 Statement of Adjustments .. 6 32 Appendix 5 Direction re: Funds .. 6 33 Appendix 6 Re-direction re: Funds .. 6 34 Appendix 7 Declaration of Possession .. 6 35 Appendix 8 Statement .. 6 36 Appendix 9 Vendor s Undertaking .. 6 37 Appendix 10 Solicitor s Undertaking .. 6 38 Appendix 11 HST Certificate .. 6 39 Appendix 12 Purchaser s Undertaking .. 6 40 Appendix 13 Acknowledgement and Direction .. 6 41 Appendix 14 Document Registration Agreement .. 6 42 Appendix 15 Extension Letter .. 6 46 Appendix 16 Purchaser s Reporting Letter .. 6 47 Appendix 17 Vendor s Reporting Letter .. 6 50 Appendix 18 Working Group on Lawyers and Real ESTATE - Ontario Standard Closing Documents User Guide 6 52 Vendor's Closing Certificate.

8 6 54 Purchaser's Undertaking & Direction Re Title .. 6 56 Lawyer's Direction Re Funds .. 6 57 Lawyer's Undertaking .. 6 58 Lawyers' Delayed Closing Escrow Agreement .. 6 59 Presentation Summary .. 6 62 Presented by: Tannis Waugh Tannis A. Waugh Professional Corporation TAB 1 The Agreement of Purchase and Sale Lorne Shuman Isenberg & Shuman Professional Corporation December 9, 2016 REAL ESTATE Practice Basics 2016 THE AGREEMENT OF PURCHASE AND SALE Lorne Shuman Isenberg & Shuman Introduction In Ontario , most real ESTATE transactions for the sale of residential property are entered into by your clients using the Ontario Real ESTATE Association ( OREA ) standard form with the assistance of real ESTATE agents. A sample copy of the OREA form is attached to this paper and has been reprinted with the permission of OREA.

9 Once accepted, the Agreement of Purchase and Sale (the Agreement ) is a contract which sets out the rights and obligations of the buyer and seller under the law of contracts. Unfortunately many clients believe that all Agreements are standard. However, every real ESTATE transaction is unique and therefore, you should encourage both parties to seek legal advice prior to entering into an Agreement. Once binding, the Agreement hopefully contains the provisions and protections to meet your clients requirements. In most cases, however, you will not be consulted prior to the Agreement becoming a binding contract. However, even if not consulted prior to this time, it is your responsibility as a solicitor to ensure that the contract reflects what your client bargained for. You are also responsible for ensuring that your client has an understanding of the rights and obligations contained in the Agreement.

10 Unfortunately, real ESTATE law continues to be a dangerous area of practice for lawyers resulting in a disproportionate and large percentage of LawPro claims. A closer examination of these claims indicates that the majority of them arise from what can loosely be termed as communication claims. For this reason, it is imperative that a prudent lawyer speaks to his or her client at the commencement of the retainer. The purpose of this communication is to provide the client with a roadmap of the transaction and process. Further, such communications and can delineate what you as the solicitor will be doing and what you will not be doing and what is expected from your client. It would also be advisable for you to follow up this communication with an opening letter once you have been retained. Once again, the purpose of such a letter is to avoid miscommunications in case of problems during the course of your retainer and the transaction.