RETAINER

By selecting ACCEPT, this letter is to confirm that we will be acting on your behalf with respect to your real estate transaction of the above-noted property. We will be handling all enquiries and preparing documentation in relation to your transaction.  Please do not hesitate to contact our office at any time if you have any questions as the transaction progresses.  There are several issues mentioned below that we should discuss soon, either in person or by telephone.  We will meet you before your transaction closes, to sign the documents.  Someone from our office will contact you to arrange such a meeting closer to when this date approaches.  Our office will communicate with you via email unless you wish for another method of communication.

IDENTIFICATION

We will require each person, to provide two pieces of identification, one of which must be Canadian/Federal or Provincial government-issued photo identification such as a driver's licence or passport.  Unfortunately, a health card is not acceptable identification.

CLOSING DATE

Your real estate transaction will be finalized on the date you have provided to us.  If this date is incorrect or changes, please advise our office immediately.

MORTGAGE

If you are obtaining mortgage financing, and have not done so already, kindly advise us with whom you will be receiving the mortgage.  Please provide your lender with our lawyer’s name Daveannand Deonarain so that your mortgage provider can send us documents.

INSURING TITLE TO YOUR PROPERTY

Lawyers acting for purchasers in Ontario are required as part of their responsibilities to advise their clients as to their options with respect to insuring the title to their property.  You may opt for a lawyer's opinion on title or you may choose to purchase a title insurance policy from one of the various title insurance companies operating in Ontario.

If you opt for a lawyer's opinion on title, after your transaction has been completed, you will receive from us an opinion as to whether you have good and marketable title to your property.  You acknowledge and confirm that you have chosen to insure your title with title insurance and consent to our office disclosing relevant information to the insurer and to accept any counsel fees payable from the title insurer. Our opinion of course will be subject to the accuracy of the information that we are provided with from the various governmental offices, and the currency and accuracy of any survey provided to us (which we have already discussed above) for review.  Unlike a title insurance policy, which is discussed below, we cannot provide you with any opinion or protection from losses with respect to title fraud.

Your other option is to purchase a title insurance policy.  In that case, we do not provide you with a lawyer's opinion on title; instead, we give our  opinion to the title insurer who in turn issues a policy to you.  A policy of title insurance will insure you against losses resulting from the various covered matters in the policy-including the matters that we would otherwise be giving an opinion to you-such as (i) your title being defective or unmarketable because of someone else owning an interest in your title, (ii) outstanding liens, work orders or encumbrances, and (iii) realty tax arrears.  There is also coverage for many survey related matters, including encroachments (other than fences and boundary walls) and violations of municipal set back requirements.  With certain exceptions, such as for post-policy date title fraud, coverage for losses applies to the extent that these matters exist as of the policy date (being the date your Transfer is registered) but that are unknown to you at that time.

In addition, the benefits of a title insurance policy include:

• acceptance by most lenders of a title insurance policy in lieu of an up to date survey (which is often required by a lender), therefore, saving you the cost of obtaining a new survey should you not require one for yourself;
• coverage for loss or damage arising from many forms of title fraud;
• a no fault claims process such that you do not have to demonstrate negligence in order to make a claim; and
• coverage for legal fees related to defending your interest in title for matters covered under the policy.

As with all insurance products, title insurance does not cover defects which you are aware of prior to the closing of the transaction (such as adverse circumstances disclosed in a home inspection report or seller property information statement) or which you may have agreed to in your Agreement of Purchase and Sale.  All policies are subject to exclusions and exceptions, including, but not necessarily limited to environmental matters and native land claims.

In the event that title insurance is obtained, there are a number of off title searches that we will not be performing as most losses related thereto that exist as of the closing date, but are unknown to you at that time, are covered in your title insurance policy.  You will save the disbursement costs related to these off title searches. However, in certain circumstances, such as where the size of the property is important, or if you are planning on adding onto an existing structure, or changes to the use of the property are contemplated, we recommend that certain off title searches be done even if title insurance is being purchased.  If this is the case, please advise our office as soon as possible.

We are recommending that your transaction be completed by way of title insurance, and in the event that our firm does not hear from you to the contrary, we will be ordering a policy from Stewart Title Guaranty Company for closing.  You will sign an Acknowledgment confirming the manner in which you have chosen to insure your title and confirming our right to disclose relevant information to the title insurer, in relation to your transaction, for the purposes of obtaining a title insurance policy.

Should you wish to discuss in further detail your options in this regard (including the option to purchase title insurance from another company) or if you wish to receive a sample title insurance policy, please contact us as soon as possible, as your decision will affect the manner in which we proceed with your transaction.

King Law Professional Corporation reserves the right to obtain title insurance from another provider without prior notice.

CONDOMINIUM STATUS CERTIFICATE

If we do not have a sufficiently recent one, we will request a Status Certificate from the condominium corporation and we will review it, including the reserve fund study, if any, to ensure that there are no arrears of common expenses, that no extraordinary levies are contemplated, that the condominium is not party to any litigation and that the condominium's insurance is in good standing.  The Status Certificate contains other documents and information, including copies of the declaration, by-laws and rules, which you should review carefully as these documents govern the use of the unit and common elements.

INTENDED USE AND CHARACTERISTICS OF PROPERTY

Please advise us as soon as possible if your plans for the property include uses other than owner-occupied residential (e.g. rental property) and/or if you plan on making any additions and/or substantial renovations.

If your property is to be tenanted on closing or if your Agreement of Purchase and Sale provides for multi-unit use, you may be assuming prior obligations of the landlord to the tenants.  Subject to the limitations in the agreement, purchaser usually protect themselves by relying on warranties from the vendors and acknowledgments from the tenants.  If your agreement provides for such documentation, we will ensure that we obtain same from the vendors' solicitor on closing.  If your agreement does not so provide, we will not be making any further inquiries and you may want to consider making your own inquiries directly with the tenants in this regard.

It should be noted that neither a title insurance policy nor our opinion will cover fire retrofit issues (that is, the property, as it sits today, would pass an inspection by the Fire Marshall); the only way to obtain such an assurance would be to have the Fire Marshall inspect the premises some time prior to closing, or at least rely on the services of a qualified home inspector.  Please advise immediately if you would like us to pursue either of these avenues (additional costs will apply).  Furthermore, a title insurance policy does not cover legality of rents or lost rental income.

Please also advise as to whether the property is located on a waterfront, highway, ravine, escarpment, or is subject to or near any hydro installations.  This information may affect the scope of the enquiries we may need to make on your behalf.

FIRE INSURANCE

Fire insurance coverage for the exterior and structural components of your property is provided by way of a Certificate of Insurance issued in favour of the Condominium Corporation; however, you are responsible for the interior and contents of your unit in accordance with the terms of the condominium documents.  If you are obtaining mortgage, the lender must also be noted as loss payee on the policy. Your insurance agent will need to provide us with a Binder Letter or Certificate of Insurance showing that the insurance is in place.  Please make the necessary arrangements for this as soon as possible.

UTILITIES

As a precaution, we advise that before you take possession, you also contact the local utilities and phone company directly in the event they require further information to set up your new accounts.

SIGNING

We will meet with you shortly before your closing date to review your file and to have you sign documents. We will need to meet with each person whose name will appear on the Transfer.  If any person whose name will appear on the Transfer will not be available at that time, please advise us as soon as possible as alternative arrangements may have to be made.

CONSENT TO WORK WITH OTHER 3^RD PARTIES

By selecting ACCEPT, you further consent and authorize our firm to work with other third parties to facilitate the closing of your real estate transaction.  Examples of said 3^rd parties are mortgage, real estate, insurance broker and agents.  In being able to collaborate with these 3^rd parties, you also consent to allow us to share confidential and personal information with them for the purposes of closing your real estate transaction.