Document Sample
					                                                                           Name of Law Firm


                                                           LAWYER’S REPORT ON MORTGAGE
                                                              AND REQUEST FOR DISBURSEMENT

ATTENTION: MANAGER – NATIONAL BANK OF CANADA                                                           Date:

                       (Address of branch or Mortgage Processing Centre)                      (Address of branch from where the Loan was transferred if applicable)

Dear Mesdames/Sirs,
Re: Mortgage/Charge (the “Mortgage”) from                                                                                                              (individually
        or collectively the “Borrower”) to National Bank of Canada (the “Bank”) in the amount of $

        over the property (the “Property”) located at:

        and legally described as follows:                                                                                                                               .
In accordance with your instructions and the information provided, we have acted as your legal counsel in the above
transaction. To this end, we examined the Borrower’s title to the Property and complied with all the conditions set out in
your Instructions to the Lawyer and the Mortgage Commitment. We prepared and arranged for the Borrower to execute
the Mortgage, using your standard forms. We ensure that you will have good and valid security in the Property in
accordance with the rank and amount specified in the Mortgage Commitment.
We ensure the following:
1) The Borrower has or will have good and marketable title in fee simple or
     (if otherwise) to the Property free and clear of all liens, charges, encumbrances or adverse claims, except the ones
     listed below in paragraphs 2 and 3.
2)     The following liens, charges, encumbrances, easements, encroachments, adverse claims or other restrictions (in any
       such case an “Encumbrance”) affecting the marketability of the Property or the rights of the Bank under the Mortgage
       or its priority are to be discharged or released:

       The following Encumbrances are to be registered:

       The following discrepancies in the legal description of the Property and title defects are to be corrected:

3)     The Bank will have a good and valid     ranking security on the Property for the full amount indicated above, as
       long as the Encumbrances are discharged or released or appropriate agreements are registered as mentioned in
       paragraph 2.
       The following Encumbrances rank prior to your Mortgage:

4)     The provisions of applicable matrimonial property legislation and subdivision control legislation have been met.
5)     All taxes and levies on the Property will be paid up to the date of disbursement of funds or, if taxes are paid under a
       tax installment payment plan program, all such taxes are current.
6)     We arranged for a true copy of the Mortgage, including any applicable standard terms, to be given to each Borrower
       and for the Borrower to acknowledge receipt.
7)     We have arranged for each Borrower to be given a copy of the Statement of Disclosure on the day the credit
       agreements are signed.
8)     There are no construction liens registered against the Property.

18433-002 (2006-09-06) (Canada except Quebec)                                                                                                                  Page 1 of 3

 – We have examined the Certificate prepared by                                                                                                      ,

      land surveyor, dated                                                    with respect to the Property.
 – The Certificate disclosed no title defects, encroachments or other discrepancies with respect to the Property, which,
   individually or taken together, could have a material adverse effect on the marketable title to the Property.

 – We confirm that 1) the amount of fire insurance covering the Property is equal to or greater than the full insurable
   value; 2) the policy contains a standard mortgage clause in the form approved by the Insurance Bureau of Canada
   and 3) the policy states that the loss is payable to the Bank as mortgagee.
 – The Property is insured as follows:
 – Broker (name and address):

 – Company (name):

 – Policy No.:

 – Amount of fire insurance: $

 – Effective date of Policy:

 In the case of a condominium, the insurance certificate for the unit and common areas indicates the following:

 – Company (name):

 – Policy No.:

 – Amount of fire insurance: $

 – Effective date of Policy:

 We have notified the insurance trustee designated for that purpose and, if applicable, the condominium corporation that
 the Bank is the mortgagee of such unit.

 If the Loan is for purposes of purchasing the Property, the price of the Property is the same as the price indicated in the
 Mortgage Commitment or, if different, the amount is $                                             .
 We undertake to have the Mortgage and the credit agreements signed no later than the day of the disbursement as
 interest will begin to accrue as of that date. We also undertake to give a copy of the Mortgage, credit agreements and
 the Statement of Disclosure to each Borrower on the day the credit agreements are signed.
 Following the registration of the Mortgage and the disbursement, you will be able to consider that we are of the opinion
 • The Borrower has absolute ownership of the Property by valid title;
 • Your Mortgage is valid and binding and the amount and rank are as indicated above;
 • No registration which could affect your rights was made against the Property between the date hereof and the time
     your Mortgage was registered; and
 • The actions to be taken with respect to the above-mentioned Encumbrances and agreements, if applicable, have
     been carried out.
 We also undertake to make the disbursements only when all the undertakings listed herein have been fulfilled. In the
 event that we are unable to deliver these amounts within 10 days of the date hereof, we undertake to notify you and to
 return such an amount on request.

      Consequently, you are requested to disburse the mortgage loan within 3 business days of the date hereof by depositing the

      in full $                                              or   in part $                                            to my in-trust account, held at

                                                                    (Name of financial institution)

 transit No.                            account No.                                             no later than                                  (time)
 on                                             (date); OR
      by issuing a bank draft which we will pick up at the branch located at:
                                                                                                                , on                          (date).
      Consequently, please activate the line of credit in the amount of $                                              .

18433-002 (2006-09-06) (Canada except Quebec)                                                                                                 Page 2 of 3
As soon as possible after the registration of the Mortgage, and in any event no later than 10 days after the
registration of the Mortgage, we will fax the documents below to the transit initiating the request:
       Letter confirming the registration of the Mortgage in accordance with your instructions, including the details of
       the registration (i.e., the date, registration number and identification of the registration office)
       For Newfoundland/Labrador only: duly signed Statement of Disclosure (under section 450 of the Bank Act)
       Copy of the acknowledgement of receipt of standard mortgage clauses (does not apply to the provinces of Alberta,
       Saskatchewan, Nova Scotia, Prince Edward Island or Newfoundland/Labrador)
       Duly signed credit agreement(s)
       Signed letter of guarantee, if required
       The duplicate of the insurance policy or the “MORTAGEE’S COPY”, only if (i) the Mortgage is for $500,000 or more
       and where the building consists of a single-family, duplex or multi-unit property of not more than 6 units, or (ii) the
       Mortgage is for $1,000,000 or more on a multi-unit property with 7 units or more
       Title insurance policy, if applicable (to be obtained prior to any disbursement)
       Other documents:                                                                                                         .


Executed at                                                             , on this             day of              ,         .

                                                                         Lawyer’s Signature

18433-002 (2006-09-06) (Canada except Quebec)                                                                         Page 3 of 3

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