Frequently Asked Questions
– Real Estate Conveyancing FAQs
What is real estate conveyancing?
Conveyance is the legal process of transferring real estate title from one party to another.
When and Where Will The Signing of conveyancing documents Take Place?
Generally, the conveyance signing process will take place a few days before the completion date of the transaction. It is usually the final step of the transaction after any mortgage funding has been arranged, and both the purchaser and the seller has already engaged their own lawyer/notary. The process can be done in-person or remotely for clients who are out of province or unable to attend in person.
What Should I expect during the Conveyancing Process?
Once the contract has been signed and finalized by both parties, you can start looking for a conveyance lawyer or notary to handle the transaction. Your realtor will assist in providing all relevant information of the property (including the contract, any addenda, strata documents and reports) needed for the transaction. Once we received the relevant documents, we will begin our “Due Diligence” stage. During this stage, you can expect us to reach out to the parties asking for personal information such as your intended use of the property, your occupation, D.O.B., address, email, and phone number. We will also conduct a title search to see if there are any concerns on title that need to be address. These are all vital information needed to complete the paperwork as part of the registration of the property title. At the same time, if you are purchasing with a mortgage, your lender should be reaching out to us to forward mortgage instructions (if you require a mortgage to completion the transaction) so we can prepare the mortgage documentation as well. After the purchaser’s lawyer has prepared the documents, he will forward them to the seller’s lawyer and the clients will be asked to sign off on the documents to complete the deal. In most transactions, the entire meeting to sign documents should last no more than 30-45 minutes. The framework of a conveyance may vary depending on the nature of the transaction. Clients are always welcome to give our firm a call for further details.
What is title insurance, and why is it needed?
Title insurance provides protection to buyers and their interest in the property; it is a safety net for homeowners who may encounter fraud, litigation, liens or claims involving the property. It is a one-time purchase and charge during the conveyance process, depending on the value of the property and it will offer protection until you no longer hold interest in the property. For example: if a fraudster steals your identity and sells your home, you may be covered under title insurance for any loss even if the insurance was purchased many years ago.
The purchase of title insurance is recommended by both the solicitors and lenders as an added layer of protection to both the policy holder and the mortgage lender under a wide variety of scenarios including protection from fraud, liens and other unknown risks that come with home ownership.
What is a title search and why is it important?
A title search is a record issued by the land title office setting out the particulars of a title to land at the time of the search, generated from information contained in the land title register at a specific point in time. A title search should be done prior, during, and after the transaction to ensure the title remains unchanged during this time. A title search will show the names and addresses of all registered owners of a property, the full legal description, and will also identify all of the registered charges, mortgages and mortgage companies, liens and interests filed against a property. The transfer date is also provided showing when the property was purchased by the current owners. For more information, contact our office if you have questions about your title search and what the information means.
What is a State of Title Certificate and why is it important?
A State of Title Certificate is a proof of the title that is certified correct at the time of issuance by the land title office. A State of title certificate provides documentary evidence of the registered owner and charges on title, similar to a title search. When issued for real property—such as land or a house or an apartment—by a land title office, the certificate is a statement of proof on the status of the title, based on a thorough examination, or title search, of specified public records at the time that the State of Title Certificate was ordered.
What is the difference between joint tenancy vs. tenancy in common?
The main difference between joint tenants and tenants in common is that joint tenants benefit from the right of survivorship. Note that the term ‘tenants’ has nothing to do with rental tenancy, but instead refers to owners who hold title as ‘joint tenants’ together. The right of survivorship ensures that when joint tenant owner dies, the property passes to the other surviving joint owner(s) without having to go through probate in the Supreme Court of BC thus saving probate fees and time. However, owners registered in tenancy in common who pass away, will usually have their interest pass through probate and in accordance with their Will. This will typically incur probate fees. All joint tenants must have an equal interest in the property, unlike tenancy in common where one owner can have a different ownership share than the other co-owner. Under tenancy in common, owners can decide on the proportion of the property that each owner owns, such as 99%-1% of 50%-50%. Ownership under tenancy in common can vary in any proportion. When an owner registered under tenancy in common passes away, their share falls into their estate and is ultimately inherited by their beneficiaries under their Will or under the laws of intestacy if there is no Will.