The Real Estate Conveyancing Process
When you are buying or selling a property did you ever wonder what happens once the deal goes firm, in general when all subjects are removed and the deposit is in place and you contact a conveyancing lawyer or notary?
In British Columbia, to complete a real estate transaction the conveyancing process is required. Your REALTOR® should know this process so they can act proactively to address any potential challenges and keep the process moving smoothly towards completion of the sale with the goal of your REALTOR® protecting you, their clients interests.
The standard conveyancing process involves the following:
1. Engagement
Once subjects are removed it is wise to immediately engage the services of a lawyer or notary. Early engagement of a lawyer or notary is very important to avoid delays and allow time to address any issues that may arise during the conveyancing process. In general, once a buyer or seller has confirmed they want to proceed with the services of the lawyer or notary, a client file will be opened.
2. Collection of client information.
In general personal information on the client is collected for client verification purposes, copies of all contracts and amendments to the transaction, contact information for the clients REALTOR®. In addition, the lawyer or notary may need to collect information from a lender, insurance advisor. If appropriate details relating to any powers of attorney.
3. Searches and Due Diligence
Next the lawyer or notary conducts searches and due diligence. Depending on who the lawyer or notary is working for (a buyer or a seller) they will do particular types of searches and due diligence. The location of the property, use of the property, and type of property will help dictate the types of searches and due diligence performed.
4. Preparation and Review of Closing Documents
The buyer’s lawyer or notary prepares the buyer’s closing documents that will include any security documents needed for financing. The buyer’s lawyer or notary also prepares the sellers’s closing documents, including the seller’s statement of adjustments, a detailed document showing many items including what portion of the property taxes is paid by who. The seller’s lawyer or notary prepares the seller’s order to pay and the documents needed to clear title, such as the discharges for any mortgages and personal property registrations. The seller’s lawyer or notary will review the seller’s closing documents (that was prepared by the buyer’s lawyer) to ensure they are accurate and reflect the terms of the Contract of Purchase and Sale.
5. Client Signing Appointment
Moving towards the end of the completion process, the lawyer or notary will typically meet with their clients two to five business days prior to the completion date to explain and sign the closing documents. Note this does not happen on the day of completion of the sale. Make sure if you have not heard from your lawyer or notary two weeks before completion to call them to book this important step.
6. Return of Documents
You may have heard your REALTOR® explain an item on the contract of purchase and sale called an Undertaking. What follows is the undertaking: The seller’s lawyer or notary after signing returns the signed vendor’s closing documents to the buyer’s lawyer or notary. These documents are delivered to the buyer’s lawyer on their undertaking not to make use of the documents, unless they have sufficient funds, when combined with any financing, to complete the transaction.
7. Registration and Closing
When the buyer’s lawyer or notary is satisfied that all the mortgage funding conditions being met and the buyer’s lawyer or notary are in possession of the balance to close from the buyer, the buyer’s lawyer or notary will proceed with registering the transfer forms and mortgage documents on the completion date at the appropriate Land Title Office. Following the electronic filing of the transfer forms and mortgage (if applicable) at the Land Title Office, the buyer’s lawyer or notary will make the net sale proceeds available to the seller’s lawyer on their undertaking to discharge any non-permitted encumbrances and clear title. Once this is all completed, the buyer’s lawyer will then report the closing to their client and the brokerages involved.
At this point it will be the time for you to either surrender or receive the keys for the property being conveyed.
If you are selling and buying at the same time, the process is more complex and special attention must be given to make sure sufficient time is allowed to help each conveyance to take place. Ask your your REALTOR® to explain more.
Personally, I explain these details to my clients so they are more aware of the legal process and aware of why the choosing of the completion, possession and adjustment dates in the contract of purchase and sale are very important among the many important parts of this document.
Source of information for expansion and clarification of above details
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If you would like to learn more about how I serve my clients in buying and selling real estate in the Maple Ridge Pitt Meadows area please contact me here to book a time for an introductory free consultation.
Once we meet you get your own personal copy of the special buyers or seller guide books I created that help you become more informed about todays more complex real estate buying or selling journey. Knowledge is power.
Sincerely,
David Hennessey
REALTOR®
eXp Realty
604 626 8903
