March 2007 e-Bulletin
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Special Real Estate Issue
Are there steps that I should take when dealing with title insurance in residential real estate transactions?
The new Residential Real Estate Transactions Practice Guidelines contain a number of references to title insurance and best practices for lawyers.
In addition to those obligations set out in Subrules 2.02(10) - (13) and Subrule 5.01(4) of the Rules of Professional Conduct, the new Guidelines set out recommended procedures that a lawyer should follow at the outset of the transaction, during the transaction and post closing.
I act for a purchaser of a property. My client would like to provide his portion of the closing proceeds for his new home in the amount of $10,000.00 to me in cash? Do the restrictions on accepting cash apply in this situation?
Yes. The prohibition against accepting cash in an aggregate amount of $7,500.00 or more applies when, in respect of a client file, a member engages in or gives instructions regarding the following activities.
- the member receives or pays funds
- the member purchases or sells securities, real properties or business assets or entities
- the member transfers funds by any means.
The lawyer in this situation may not accept cash exceeding $7,500.00 or may advise the client that he or she will not accept cash. See FAQs on Money Laundering and By-Law 19 for more information.
New Rules of Professional Conduct
On February 22, 2007, Convocation approved certain amendments to the Rules of Professional Conduct. These amendments are contained in the following subrules.
- Subrules 2.02(14) and (15) - Reporting on Mortgage Transactions
- Subrule 2.04(6.1) - Disclosure to clients when acting for a borrower and a lender in a mortgage transaction
- Subrules 2.04 (8.1) and (8.2) - Obtaining Consent on Joint Retainers from Lending Clients
See the Law Society's website for more information on the amendments.
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1-800-668-7380 ext 3315.
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Residential Real Estate Transactions Practice Guidelines
Created for real
estate lawyers
by real estate lawyers, the 4th Annual Real Estate Law Summit on April 18 and 19 will give you practical tips for dealing with Ontario's new residential tenancy regime, priority issues related to advances under lines of credit and other revolving facilities, the latest perils of electronic registration and other key practice issues. Visit e-Transactions for more information and to register.
A NEW web page especially for lawyers who practice real estate law has been created on the Law Society's Resource Centre website. The new Real Estate Practice Resources page gives you access to all the products and resources available from the Law Society about real estate law. From this one page, you can access the following information.
- Cash Transactions and Money Laundering
- Electronic Registration
- Fighting Real Estate Fraud
- Private Mortgages
- NEW Residential Real Estate Transactions Practice Guidelines
- Third Party Service Providers
- CLE programs for Real Estate Law
- CLE Materials for Real Estate Law