Once a real estate deal becomes firm, a conveyancing lawyer or notary is engaged to handle the legal aspects of transferring property ownership. The conveyancing process is a crucial step in completing real estate transactions in British Columbia. However, many buyers and sellers are unfamiliar with what happens behind the scenes. By understanding the conveyancing process, you can proactively prepare for each step, avoid common pitfalls, and ensure a smooth closing.
This guide will walk you through the standard conveyancing process, while a follow-up article will explore potential issues that may arise and how they can be addressed.
The Seven Steps of Conveyancing:
1. Engagement
2. Collection of Client Information
3. Searches and Due Diligence
4. Preparation and Review of Closing Documents
5. Client Signing Appointment
6. Return of Documents
7. Registration and Closing
Let’s take a closer look at each step:
1. Engagement
The process begins when a buyer or seller hires a lawyer or notary to oversee the transaction. It is essential to engage legal representation as early as possible to prevent delays and address any potential concerns. Once engaged, the lawyer or notary may issue a formal retainer agreement outlining the scope of services.
2. Collection of Client Information
The lawyer or notary will gather necessary details from the client, often through electronic forms or email. The information collected includes:
Full legal name, address, birth date, and contact details
Copies of all contracts and amendments related to the transaction
Contact information for the client’s REALTOR®
For buyers, additional details may include financing arrangements, mortgage lender information, insurance provider contacts, and preferred ownership structure (joint tenants or tenants-in-common).
Sellers will need to provide mortgage or loan reference numbers if there are financial encumbrances to be cleared at closing.
If a power of attorney is being used to sign documents, this must be communicated early to ensure compliance with the Land Title Act and allow sufficient time for registration.
3. Searches and Due Diligence
To protect the buyer’s or seller’s interests, the lawyer or notary will conduct various searches depending on the property type and location. These may include:
For Buyers: Title search, tax certificate, strata documents (if applicable), insurance verification, and mortgage instructions
For Sellers: Title search, personal property registration search, and mortgage payout statement requests.
4. Preparation and Review of Closing Documents
The legal representatives prepare and review all closing documents to ensure accuracy and compliance with the terms of the purchase agreement. This includes statements of adjustments, security documents for financing, and discharges of existing encumbrances.
5. Client Signing Appointment
Clients typically meet with their lawyer or notary two to five business days before the completion date to review and sign documents. If a client is unavailable, alternative arrangements, such as signing with an out-of-province or overseas notary, must be made in advance.
6. Return of Documents
Once signed, the seller’s closing documents are returned to the buyer’s lawyer or notary, who holds them under standard legal undertakings until funds are ready to be transferred.
7. Registration and Closing
On the completion date, the buyer’s lawyer registers the property transfer and any mortgage documents with the Land Title Office. Once completed, the sale proceeds are transferred to the seller’s lawyer, who ensures all financial obligations are met before releasing the funds to the seller. The buyer’s lawyer then reports the closing to their client and the involved brokerages.
By understanding these steps, buyers and sellers can navigate the conveyancing process with confidence and avoid unnecessary complications. In our next article, we will explore common issues that arise during conveyancing and how to resolve them effectively.
