Notaries



MENTORING PROGRAM

CONVEYANCING: PURCHASE WITH MORTGAGE

Review Contract of Purchase & Sale & Sales Record Sheet using checklist:

• Have all pages been received?

• Have all Subject Conditions been removed?

• Who is your client?

• Who acts for the other parties?

• Who is the realtor?

• Who holds the deposit?

• What is the commission amount?

• What is the commission payment system?

• What are the closing, possession & adjustment dates?

• What kind of property is it? Strata? Non-Strata? Fee Simple? Leasehold?

• Identify & verify legal description using BC Assessment search or tax search

• Identify special conditions set out in the contract?

• Identify the closing system agreed upon if any

Contact Client using Intake Questionnaire:

• Review client intake questionnaire before calling

• Determine if contact has previously been made and a quote given

• Call client

• Verify you are acting

• Obtain full legal names, address, occupations, phone, email contact, fax numbers,

• Ask how they intend to take title – Joint Tenants? Tenants in Common?

• Are they First Time Home Buyers?

• Do they qualify? If so, obtain SIN #s and address for previous 2 years – Be prepared to discuss qualification requirements in general

• Are they getting a new mortgage? With which lender? Contact information.

• Discuss process time lines in general

• Advise that a retainer letter will be sent and verify email address

• If strata, ask if they have received Bylaws, Rules, Financials, Minutes. If not, advise them to obtain them or instruct you to obtain them

• If not a strata, ask if they have a survey certificate from the seller. If not, advise them that you may need to order a new survey or title insurance, depending on the requirements of the lender

• If not strata, ask who their insurance agent is and whether they have arranged new insurance. Get contact information.

• Go through relevant parts of the questionnaire

Open New File:

• Using Notary Office – create new file

• Conduct title search in Notary Office or on BC Online

• Order plan and required non-financial charges on BCOnline

• Insert client as new contact if not already a client in the database

• Insert other party’s lawyer or notary information

• Complete realtor, deposit, and commission information from sales record sheet

• Generate engagement letter

• Review engagement letter with mentor and edit as required based on your client intake questionnaire and searches to date

• Send engagement letter to client

• Contact lender, verify you are acting, and ask for mortgage instructions

• Write to other party’s lawyer or notary and verify you are acting and they are acting

Conduct Searches:

• Based on property type, order searches for

o Taxes

o Utilities

o Metered Water

• Order information, if required, for

o Strata Information – Form F

o Strata Form B certificate

o Fire insurance binder

o Title insurance/or survey

o Rental information if required, including security deposit

• Input new information into Notary Office as you receive it

Prepare Documents: Seller

• Generate documents to send to seller’s legal reprentative

o Form A Transfer

o Vendor’s Statement of Adjustments

o GST Certificate

o Non-residency declaration

o Statutory Declaration regarding an existing survey, if necessary

o Other documents as required

o Letter of undertaking to seller’s lawyer

• Review documents and letter of undertaking with mentor and revise as required

• Email or fax documents to seller’s legal representative

Mortgage Instructions – using checklist:

• Receive and review mortgage instructions with mentor including Mortgage Approval and Statement of Disclosure

• Determine if any additional payments are to be made

• Determine if the mortgage is CMHC or NHA insured

• Review lender website for updated instructions and/or document requirements

• Determine what additional requirements are necessary and order support information if any

• Input instructions into Notary Office

• Obtain and review existing or new survey for encroachments or bylaw setback infractions

• If no survey, obtain and review title insurance if required

• Obtain and review insurance binder , paying attention to lender minimum insurance instructions

• Requisition mortgage proceeds from lender for date required

• Verify names of borrowers against names of buyers as provided by client

• Determine if covenantor or guarantor is required and if so, contact client for verification

Prepare Documents: Buyer/Lender

• Conflict letter for Buyer/Borrower re mortgage

• Form B

• Acknowledgement of Receipt for Filed Standard Mortgage Terms

• Electronic filing consent

• Property Transfer Tax Return/First Time Home Buyer’s Exemption Application

• Order to Pay for Lender

• Buyer’s Statement of Adjustments

• Trust Reconciliation

• Statement of Account

• Other documents as required

• Review generated documents with mentor

• Make necessary copies for execution process

Client Execution:

• Sort documents for execution using established order of documents for review

• Make an appointment for clients to attend asking client to bring in certified cheque for closing amount and two pieces of authorized identification

• Greet clients and attend upon execution with mentor

• Review documents with client (giving a copy of each signed document to client):

o Conflict letter

o Contract of P & S generally only

o Title Search – have client initial the search

o Charges to remain on title – give copies to client

o Registered subdivision or strata plan – have client initial the property being purchased

o Tax search, utility search, metered water search, etc.

o Form B Information Certificate (if strata)

o Strata Bylaws, Rules, Minutes, etc., if necessary and agreed upon

o Discuss parking situation if strata

o Property Transfer Tax Return/First Time Home Buyer Exemption application (with qualification guidelines)

o Mortgage Approval (if any)

o Mortgage Statement of Disclosure (if any)

o Filed Standard Mortgage Terms generally

o Form B Mortgage Part 1

o Supporting documents if required (such as life or disability or critical illness insurance application or waiver)

o Lender Order to Pay authorizing payment of funds to notary firm

o Buyer’s Statement of Adjustments

o Statement of Account

o Verify client has received engagement letter and ask if they have any questions

o Provide receipt for certified cheque or bank draft for closing proceeds

o Discuss closing procedures in general

o Discuss reporting procedure

o Verify that the buyer has made arrangements to obtain possession (keys from the realtor)

o Give copies of all documents discussed and signed to the client in presentation folder

Closing Procedure: using checklist:

• Deposit buyer’s closing proceeds into trust within 24 hours of receipt but before registration

• Prepare interim report to lender if required and fax with supporting documents requested

• Receive seller’s documents back from seller’s lawyer/notary

• Review documents to ensure they are properly signed and complete

• Review undertakings with mentor

• Verify mortgage funds have been requisitioned; all documents for advance have been received, and funds are expected to be advanced as required

Day Before Closing

• Complete electronically saved Forms A, B, F, and PPT/FTHB application for digital signature by mentor

• Verify mentor has affixed digital signature

Closing Date: using checklist:

• Verify all required funds are in trust (less mortgage funds depending on lender’s funding procedure)

• Review undertakings once again to ensure all are complied with or can be complied with

• Review documents once again to ensure they are signed and digitally signed

• Conduct pre-search and review against search in file

• Upload electronic documents for registration

• Report registration number to Lender if required for funding purposes

• Wait at least one hour before conducting post-search if registered during LTO business hours

• Prepare cheques pursuant to Trust Reconciliation report

• Prepare closing letters to seller’s lawyer/notary enclosing funds (with undertakings already agreed upon); to realtor paying or requesting release of commission and/or excess deposits; interim report to lender and client

• Receive and deposit mortgage advance funds if not direct deposited

• If mortgage funds are direct deposited, verify that they are in the account and the amount is correct

• Conduct post-registration search and review against pre-search

• Print registered copies of documents from BCOnline

• Review Trust Reconciliation and bank deposits with mentor along with payout cheques and letters

• Contact seller’s lawyer/notary to pick up funds

• Advise client that registration and payout has been completed successfully

Post-Closing Procedure: using checklist:

• Prepare cheques for Strata Certificates; searches if necessary; insurance binders; survey; title insurance; notary services and other required accounts

• Review the file and tidy up documents by fastening them down according to office policy

• Safeguard “true copies” of electronically filed documents in accordance with office policy

• Diarize file for abeyance matters in accordance with office policy – receipt of discharge particulars, if any, holdback releases, etc.

• Review completed file with mentor

Abeyance Procedure:

• Receipt and review of discharge particulars

• Report to Mortgage Discharge Center if applicable (see Rule 10.06)

• Order State of Title Certificate

• Confirm all undertakings are complied with by all legal representatives

• Send Final Report to Lender with STC

• Send STC to client

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