In the e-Reg environment, it is lawyers, not the clients themselves, who sign the registration documents. This raises concerns that lawyers may be held responsible for client factual statements (such as confirmation of age, marital status) if the lawyer does not personally know whether the information provided by the client is accurate. The most important thing is that the DRA (or any agreement you make to comply with the terms of a fiduciary transaction) is in fact an obligation that you give to the other lawyer. As with any business, you need your client`s approval to give the commitment. Consent begins with the GSP provisions, as shown above, and is also given explicitly by your client when he or she runs the teraview Electronic Registration System (TERS) that generated acknowledgment and direction. The standard form of Acknowledgment and Direction provides for this: I still think the e-regTM system is very special and has really updated our real estate practices. But the problem I`ve found is that in this era of faceless closures, some lawyers seem to have forgotten (or perhaps never knew) the meaning of this phrase “we are closed now,” which historically led to the release of the trust and, therefore, you can unlock the keys/money, as the case might be. Keep in mind that this coverage is only made on the basis of an application and therefore only occurs on the day the return page is issued or when LAWPRO makes the disclosure. So you can check at least once a year that the advisor you`re doing business with still has coverage of the innocent party and the amount of coverage. Impact of Acknowledgment – Direction Remember that when signing the confirmation generated by the e-reg software, the customer orders you to enter into a trust in accordance with the document registration agreement. A copy of this agreement is attached to the Confirmation – Directorate. I know this information is fundamental to many of you, but it is surprising how many lawyers do not seem to fully understand the full extent of their trust obligations in the real estate context.
It is worth reviewing and verifying some of the basic documents of our daily transactions in order to fully understand the nature of the transaction we are undertaking and the commitments we make on behalf of our clients. However, if the mortgage on the same property is not a private mortgage, lawyers cannot give the seller`s lawyer`s commitment or agree to pay that mortgage after closing. A private mortgage must be paid in advance or before closing. The buyer`s lawyer will therefore be able to transfer money to the lender`s lawyer to pay off the existing private mortgage (i.e. the new mortgage funds can only be released once the private mortgage has been released), and the lender`s lawyer will not release the mortgage until he receives the closing funds. How does the buyer`s lawyer meet this challenge? It is acceptable to proceed, on the basis of a tripartite registration agreement signed by the seller`s lawyer, the buyer`s lawyer and the lender`s lawyer, which includes relief from the private mortgage by the private lender in the schedule of documents to be registered at the closing. In this way, payments can be made to the trust lender`s lawyer until the discharge is registered.