Sale Transactions

• Author: Tina Kamakaris/Jane Kamakaris/Louis Kamakaris
• Pages: 621-640

621

Chapter 35 Sale Transactions

CHAPTER 35

is chapter sets out the process of completing residential real estate sale transactions and the role

of those who may be involved in the transaction.

STANDARD DOCUMENTS PREPARED IN SALE

TRANSACTIONS

• Verication of identity (individual or organization; see Chapter 2)

• Transfer/Deed (see Chapter 32 for preparation of electronic and paper transfer/deed)

• Statement of adjustments

• Direction regarding funds

• Solicitor statutory declaration re writ of execution (over $50,000)

• Client statutory declaration re writ of execution (under $50,000)

• Direction re engrossing vendor-take-back charge/mortgage, if any

• Assumption letter (where a charge/mortgage is to be assumed)

• Acknowledgment of tenancy

• Re-Direction of funds

• Letter replying to requisitions

• Vendor’s undertaking

• Warranty re UFFI/Bill of Sale/HST (purchaser usually forwards own version)

• Declaration of possession (purchaser usually forwards own version)

• Letter requesting discharge statement (where existing charge/mortgage is to be discharged)

• Discharge of charge/mortgage (where existing charge/mortgage is to be discharged)

• Lawyer’s undertaking regarding discharge of institutional charge/mortgage and letter to nan-

cial institution enclosing certied funds necessary to discharge the charge/mortgage

• Acknowledgement and direction report (see Chapter 36 for precedent)

• Document registration agreement (see Chapter 36 for precedent)

• Letter for closing

• Reporting letter

SALE

TRANSACTIONS

Copyright © 2022 Emond Montgomery Publications. All Rights Reserved.

622 Legal Office Procedures

JONES, Herbert Dennis and Mary Jane

Re: Sale to Smith

146 Camelot Avenue, Toronto

Closing Date: March 25, 20--

Mr. and Mrs. Jones have long since become empty-nesters. All three of their children have

married and moved out, and the house on Camelot Avenue was just too big for them to

maintain. ey have sold it to John James Smith and Jill Smith, a young family with two

kids and one on the way.

Castles & Sands will be preparing the charge/mortgage back to our clients. Assume that

we have received an assumption statement from Trust Loans Limited showing the principal

to be assumed in the amount of $30,321.53 plus interest. e second charge/mortgage

back to the vendors is in the amount of $14,600. We have prepared all of the documents

which relate to this transaction. We are ready to close.

THE SALE TRANSACTION

e sale transaction is commonly referred to as a real estate deal. It may involve the sale of a

residential or commercial property. In a sale transaction, your rm acts for the vendor, the seller.

e main job of the vendor’s lawyer is to prepare the transfer/deed and the statement of adjust-

ments and to see that the vendor receives the correct amount of money on closing. Closing

means the date on which all title documents are registered, and the vendors get their sale money,

and the purchasers get the keys to the property.

Agreement of purchase and sale Your client or the real estate agent provides the agree-

ment of purchase and sale; it is the signed “oer.” After reviewing it, the lawyer usually hands it

to you to open a new le. Be sure you are able to readily “read” the agreement of purchase and

sale as nearly all steps and documents in a purchase and sale transaction ow from the terms and

conditions contained in the agreement of purchase and sale. See Chapter 30 for a sample of an

agreement of purchase and sale.

Reminders Make separate reminders for the closing and requisition dates, and monitor

them carefully. ese dates are in the agreement of purchase and sale.

Check for conflict of interest Make sure your rm is not acting for both sides (vendor

and purchaser). If so, bring it to the lawyer’s attention. Here is an interesting case in point by

the prolic and witty Mr.Justice John A. Scollin.

Mr. Justice John A. Scollin found a Dauphin, Manitoba, lawyer to have acted in conict of

interest and ordered him to pay $71,000 to the lawyer’s own client. Mr. James D. Deans acted

for both buyers and sellers in a land-ip scheme which articially inated land value by 300 to

400 percent in a few months. e scheme worked by transferring property back and forth to a

small group of investors and collapsed when no new investors could be found. e purchaser,

Mr. Roger Watson, sued his lawyer, Mr. Deans, for not advising him of the dangers of the

scheme since Mr. Deans also acted for the promoter of the scheme, Mr.Douglas V. Barber. In

the scheme’s collapse, Mr. Watson discovered that the property he purchased for $50,000 was

actually only worth $12,000 and would not price-balloon as the seller had led him to believe.

In his decision, Mr. Justice Scollin found Mr. Watson “knowledgeable and greedy” but stated:

Copyright © 2022 Emond Montgomery Publications. All Rights Reserved.