Information for Buyers in British Columbia - what your lawyer will need

The deal is done, the Contract has been signed, sealed and delivered, the Mortgage has been arranged - now what?

You must decide on the lawyer or notary public you will use to represent you and finalize all the paper work.  So get out your yellow pages or ask your Realtor for suggestions of a few offices and phone for quotes.   Be sure when you are getting the quote that it includes everything.   Most offices do not include the cost of Strata forms, Insurance Certificate or couriers in their fee quote.   They also may not include other charges for document preparation, law society fee, tax search, etc.   Find out the TOTAL cost to you for closing so that you can decide on who to use.   Be prepared that some things may vary slightly from your quote for instance couriers, but you will be within a few dollars of knowing exactly what your costs will be.   Also, quotes given for files are based on having at least 7 working days to prepare the file.   If you have left it to the last minute you can expect rush charges not just from the lawyer or notary but also from the strata management company (if Strata) for the forms required.

I also have to put in just a brief statement about choosing a lawyer or notary.   Notaries are trained and licensed to prepare and register all the documents for your transaction.   They are able to give you legal advice on those documents.   Be warned though, that they are not able to give you legal advice should there be any legal problems during completion.   Should a problem arise you will have to move your file from the notary to a lawyer and pay the lawyer's hourly wage to review the file so that they are able to give you legal representation.    Whereas if a lawyer already has the file they are already up to speed and have likely foreseen the problem developing and are able to give you legal advice that in may cases prevent escalation of the problem.   As you are phoning around for quotes you will notice that a notary charges just as much as a lawyer to do your paperwork.   It is a small percentage of files that do have legal problems so this may not be a concern to you but I just wanted to point out this detail.     

Once you have made your decision advise your Realtor and Mortgage professional the name of the lawyer or notary.   They will then send all the documents necessary to them to begin work on your file.  

For now that is all you have to worry about.   Approximately two to three weeks before your completion date contact the lawyer's office to confirm your details with the legal assistant who has been assigned your file.   Keep in mind that the busiest time in a conveyancing department is month end so try to time your initial contact at least a week before or a week after.   It is really helpful if you confirm the email address of the assistant and email the following information:

1. The full legal names of all the partieswho are to go on title - this must be all the parties who were approved for the Mortgage as borrowers.   (So if you are a first time homebuyer and one or both of your parents applied for the mortgage with you they must also go on title so be sure to provide their/his/her information as well.)
   
2. You must provide the occupation for each of the parties.  
   
3. Also provide the percentage ownership to be registered for each person.   (Again, in the case of a first time homebuyer with a parent often the parent is registered with a 1% ownership so that the new buyer can still claim 99% of the PTT tax exception.)
   
4. Advise the type of tenancy to be registered.   If the percentage ownership is not equal then the parties must be registered as tenants in common.   If the parties are to be equal owners, or equal owners of a share of the property, then they may be registered as joint tenants.   What is the difference?  In the event of a death of one of the parties the remaining "joint tenant" may simply file a copy of the death certificate at the Land Title Office and the interest of the deceased in the property will transmit to remaining joint tenant(s).   As a tenant in common, the parties must deal with the interest of the deceased in accordance with the terms of the court ordered Probate or Letters of Administration.   Married copies will generally be joint tenants whereas a couple with children from other marriages will often be registered as tenants in common.   This is an important decision.
   
5. Confirm if you are moving to the property or if this an investment property, confirm your address.
   
6. If the purchase price is below $450,000.00, you are moving to the property and any of the parties to go on title are first time homebuyers then provide the birth dates and social insurance numbers for each first time homebuyer.  
   
7. If the property is a Strata, confirm the name of the Management Company and if you have a Form B provided to you by the Realtor, forward a copy.   The Strata property is insured by the Strata Corporation but this does not cover your contents or personal liabilities so you may want to look into your own insurance for this coverage.   The lawyer or notary does not require a copy of this insurance - they will arrange for a Certificate from the Strata insurance company. 
   
8. If the property is not Strata, you must arrange for you own insurance.   If there is a mortgage involved the assistant will need to know the name of your Insurance Agent and the phone/fax numbers.   A binder of insurance must be provided before the mortgage can be registered and funds advanced.   So don't leave this until the last minute - it can cause a delay in completion.
   
9. The assistant will also have to know that you have reviewed all the non-financial charges on the title of the property.   If you have not reviewed these with your Realtor, or you have reviewed them but would like copies, be sure to advise that you would like copies of the non-financial charges, or which charges you would like copies of - you will be charged an additional fee for each document.
   
10. If you were provided with a copy of a Site Survey then forward a copy to the assistant.   He/she will prepare a Statutory Declaration for the seller to sign confirming that there have been no additions or modifications which would invalidate the Survey.
    
11. Provide the name of your lender.   Since every lender has different requirements this helps the assistant to know what will be required - i.e. title insurance or Survey,  Some lenders require five days notice for funding and some only one day so the assistant has to know who your lender will be to ensure advancement of funds on time.  Also provide the name of your Broker/Banker and the phone number so the assistant can follow up if the instructions are not received on time.
    
12. Have you considered title insurance?  See my previous blog on this: http://activerain.com/blogsview/1831314/title-insurance-what-to-say-when-a-buyer-asks-if-they-need-it.   You can ask the assistant to obtain a quote for you - it is generally a one time fee of approx. $200.00 - $300.00.
    
13. At some point in the week before your completion date you must arrange an appointment to sign all your documents.   It is difficult to arrange this time weeks in advance since the legal assistant must ensure that all the documents are prepared including your mortgage documents.   Often mortgage instructions are not received until just before completion so it is best to check back with the assistant closer to the completion date to set your appointment.   All parties going on title must attend at the appointment to sign at the same time and it will be during business hours so be prepared to take some time off work.   If it is impossible to arrange a time that everyone can make it you will likely be charged an additional fee for the second visit.   The reason for this is that the "fee" portion of the legal account has been quoted based on certain time spent on the file.  When more time is required additional costs may apply.  
    
14. You will need to provide the balance of funds required to complete by bank draft payable to the legal/notary office "in trust".   The assistant will advise the amount required since all adjustments must be made for taxes, etc. to arrive at this final figure.   With interest rates being so low, many buyers are taking their bank draft with them when they go to sign saving them a second trip to drop it off.   Ask the legal assistant to email you a copy of the Statement of Adjustments before your appointment so that you can make the arrangements for the bank draft.   If you have any questions on the Statement call the assistant back and she/he can go through it with you.  Also, mistakes can happen (everyone is human) and better to fix the problem before your appointment than when you are sitting in with the lawyer. 
    
15. Provide a phone number where you can be reached during the day.  

Prior to becoming a Real Estate Professional I worked as a paralegal/real estate legal assistant for 30 years in lawyers offices.   The above information is what is required on every file but there may be additional information required for your specific file.   The legal assistant handling your file will contact you with any further requirements.   Sometimes email is the best form of communication especially at month end.  

That pretty well sums up what the lawyer will need to know.   You will, of course have to make arrangements for your movers (on your possession date - not your completion date), and arrange for hydro, phone, cable, etc.   Congratulations on your purchase and feel free to ask any questions you like below and check back for your answer.   I can't provide legal advice but I can certainly advise on any of the steps required to complete your purchase.