Lawyer’s Duties in a Real Estate Sale in Ontario

You might wonder what a lawyer is supposed to do in a real estate deal? According to the standards of practice, when undertaking the representation of a client in the sale of a residential property, a solicitor must always:

1) Prior to the execution of an agreement of purchase and sale

• Advise with respect to the agreement, with reference to the title opinion available from the purchase

2) After execution of the agreement

• Review the agreement immediately

3) Commencement of the processing of a file

• consider the applicability of section 50 of the Planning Act, assist in any application for severance, make any searches of adjoining properties that may be required

• consider requirements for obtaining consent of spouse under the Family Law Act

4) review of letter of requisitions

• check to see if requisitions are received within the time permitted by the contract

5) review documents and correspondence from purchaser’s solicitors

• review Undertakings

6) interview Clients to review file and sign documents

• explain documents and have them signed

• discuss closing procedure and delivery of funds

• take instructions with respect to extensions and further undertakings

These are the six areas in a transaction where the solicitor is expected to have specific and direct dealings with the matter. They cannot be delegated to a third party paralegal, no matter how experienced that person may be.

It is evident that this expectation is not always observed by all law offices. Nevertheless, this is intended to be the minimum practice standard. In some law offices a solicitor will have a greater involvement. These are simply the matters that should not be delegated. They are considered to be that important and that integral to the transaction.

In all circumstances, the law firm will be responsible for the work undertaken by its employees and those to whom it has delegated a portion of the work.

From the perspective of a real estate agent, you will notice that a review of the agreement, that is, prior to execution, combined with a review of the title opinion is the personal responsibility of the lawyer acting for the vendor in every case. The mere fact, that you don’t send it, doesn’t mean that the client doesn’t get charged for this review. It’s just too late for any worthwhile input. And, if that involves a title problem, that type of risk may very be assumed by the real estate agent.

This responsibility and this review is supposed to be part of the basic fee. It’s not an “extra”.

In any event, it’s important to know the roles of various parties assisting your client in the transaction.

Brian Madigan LL.B., Realtor is an author and commentator on real estate matters, Royal LePage Innovators Realty
905-796-8888
www.OntarioRealEstateSource.com