In Rem by ngs20854

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									     T H E    C A N A D I A N   B A R   A S S O C I AT I O N   /   L’ A S S O C I AT I O N   D U   B A R R E A U   C A N A D I E N




                                          In Rem
                                           CBA National Real Property Section/Section nationale du droit immobilier




A National Solution for                                                                                   and FLSC mandates, the diversity of
                                                                                                          professional and legal practice experience, and
                                                                                                          the balanced geographic representation of
Real Estate Lawyers                                                                                       jurisdictions across Canada.

                                                                                                          Looking to Future Project Focuses

The Project                                          technological change and new products in             Despite progress with the Project, national real
                                                     conveyancing, monitoring the movement                estate issues continue to exist and indeed
The National Real Estate Project is a three-         towards electronic registration and                  emerge in the marketplace. Potential future
year joint initiative of the Canadian Bar            corresponding registry developments, and             Project priorities could include the
Association (CBA) and the Federation of Law          facilitating the exchange of information and         implementation of an alternative service
Societies of Canada (FLSC). The mandate of           knowledge.                                           delivery framework or Lawyers Property
the project is to provide members of the legal                                                            Exchange, the development of advertising and
profession and their governing bodies with a         Project Components                                   marketing materials promoting the role of the
mechanism through which issues arising from                                                               real estate Bar in conveyancing and the
rapid changes in all aspects of real estate and      The National Real Estate Project is directed by      provision of access to public sector
conveyancing practices can be monitored and          a joint committee comprised of members from          geographical information systems. The
addressed across Canada. The project is              both the CBA and the FLSC. The committee             National Real Estate Committee is considering
guided and financially sponsored by the CBA          has two chairpersons, one representing the           a second three year Project mandate to both
and the FLSC. A Joint National Real Estate           CBA and the other the FLSC, and additional           address continuing threats to conveyancing
Committee comprised of two co-chairs, one            members from each organization.                      practices and the public interest, and to
representing the CBA and the other the FLSC,                                                              manage and accomplish the above future
and additional members from each                     The committee provides strong and balanced           project goals.
organization, directs the project.                   guidance to the Project in a variety of ways. In
                                                     addition to joint representation of the CBA and
Project Status                                       FLSC, the committee is representative of the
                                                     real estate Bar both geographically and
The Project is heading into the third and final      professionally. Members of the committee
year of its mandate. Three Project priorities        were appointed from across the country to
identified by the Joint Committee in August          ensure differences in real estate practice               PRÉCIS
2000 are progressing and are expected to be          standards, practice conventions, residential real
completed by the fall of 2002. These include a       estate markets, rules of professional conduct
                                                                                                             Une solution nationale pour les
national approach to confirming mortgage             and legislation are taken into consideration.           practiciens en droit immobilier
security for lenders, standardized closing           The professional backgrounds of the members
                                                                                                             Le Projet
requirements and the development of a                of the committee are equally diverse.
framework for an alternative service delivery        Committee members include real estate                   Le Projet national sur le droit immobilier est une
model which will enable practitioners to offer       practitioners, a practicing notary from Québec          entreprise conjointe d’une durée de trois ans entre
a wider range of real estate services to their       who also represents la Chambre des notaires             l’Association du Barreau canadien (ABC) et la
clients.                                             du Québec and senior staff from law societies           Fédération des ordres professionnels de juristes
                                                     and the CBA.                                            du Canada (FOPJC). Le Projet vise à offrir aux
                                                                                                             membres de la profession juridique et à leurs
On-going objectives of the Project include
                                                                                                             instances décisionnelles un mécanisme qui leur
liaising with stakeholders, monitoring the           The composition of the committee renders it             permettra de surveiller et de traiter tous les
activity of American title insurance companies       an effective vehicle through which to direct the        aspects des changements rapides qui
in the real estate marketplace, tracking             National Real Estate Project. The strength of           bouleversent le monde immobilier et la pratique de
proposals for legislative reform, monitoring         the committee is evident in the union of CBA                                            suite à la page 5
Report on the Real Property meeting with the
Department of Justice
By Paul J. Caron, Q.C.                                         concern to the Real Property Section and the               the Criminal Code is very broad and provides
Chair - National Real Property Section                         Department of Justice on real estate matters               that interest charged or collected at more than
Caron & Partners, Calgary                                      having a national focus. The agenda was                    60 per cent per annum constitutes a criminal
                                                               prepared in advance and the following items                offence. It is an offence not only to charge
On October 27, 2000, I represented the                         were discussed:                                            interest but to receive such interest. This creates
National Real Property Section in a meeting                                                                               a problem for commercial mortgage lenders
with two representatives of the Department of                                                                             who wish to participate in profits from the
Justice: Michel Vermette and Michael P.                        1. Criminal Rate of Interest -                             project to which they are lending money. Such
Richard. Ann Tremblay, Real Estate Project                        Section 347 of the Criminal Code                        mortgages are commonly referred to as
Manager for the National Real Estate Project,                     of Canada                                               “Participating Mortgages.”
was also in attendance. The purpose of the
meeting was to discuss areas of common                         The definition of interest under this section of           For example, the borrower may have title to a
                                                                                                                          piece of property and wish to develop it on the
                                                                                                                          basis that the lender will provide a loan at
    PRÉCIS
                                                                                                                          market rate of interest or a reduced rate of
                                                                                                                          interest plus a percentage of any profits that
                                                                                                                          result from the project. There may be no profits,
    Rapport de la rencontre en droit immobilier                                                                           but if there are, depending on how soon they
    avec le ministère de la Justice                                                                                       are received and depending on the amount, the
                                                                                                                          rate of return to the lender may well be in
                                                                                                                          excess of 60 per cent per annum rate. If so, the
    Le 27 octobre 2000, la Section du droit immobilier,        d’amortissement.                                           rate of return is unenforceable because it
    représentée par Paul Caron, c.r., a rencontré les                                                                     violates the Criminal Code.
    représentants du ministère fédéral de la Justice,          * La TPS et la question de la super garantie
                                 .
    Michel Vermette et Michael P Richard. Ann                                                                             Most lenders will insert a clause in the
    Tremblay, directrice du Projet national sur le droit       En vertu de l’article 222 de la Loi sur la taxe            mortgage stating that notwithstanding the terms
    immobilier de l’ABC, assistait également à la              d’accise, une fiducie est créée pour la TPS non            of the mortgage the rate of return shall not
    rencontre, qui portait notamment sur les sujets            payée en faveur du Gouvernement du Canada, ainsi           exceed 60 per cent per annum. It is still
    suivants :                                                 qu’une « super-priorité » sur les créanciers               unsettled whether or not such a “severance”
                                                               garantis. Nous avons été informés que les
                                                                                                                          clause is effective (see Island Financial Services
    * Taux d’intérêt criminel - article 347 du Code            hypothèques de terrains enregistrés sont exclues de
      criminel du Canada                                       cette super-priorité.
                                                                                                                          Ltd. v. Kirkstone Management Ltd. (1995), 7
                                                                                                                          W.W.R., 135 with BCORP Financial Inc. v.
    En vertu de l’article 347 du Code criminel, toute          * Loi sur la gestion des finances publiques -              Baseline (1990), 46 B.C.L.R. 89).
    perception d’un taux d’intérêt de plus de 60 pour            articles 67 et 68(2)
    cent constitue une infraction criminelle. Cela peut                                                                   The commercial reality of today dictates that
    poser un problème aux prêteurs d’hypothèques               Cet article semble interdire à un propriétaire ayant       commercial borrowers and lenders have
    commerciales qui souhaiteraient participer aux             le gouvernement fédéral comme locataire de céder           flexibility in the structuring of loans. There are
    profits éventuels du projet qu’ils financent.              l’intérêt du bail à titre de sûreté à un prêteur           many occasions where a borrower will be
                                                               hypothécaire. Le ministère de la Justice nous              unable to move forward with a project without
    Par exemple, un acheteur pourrait, pour acheter un         assure que les règlements de la Loi le permettent.
                                                                                                                          offering the lender some form of equity in the
    terrain et le développer, conclure une entente avec
    un prêteur. Ce dernier le finance à taux réguliers ou      * Mise à jour sur l’assurance-titres
                                                                                                                          project. The Criminal Code should not prohibit
    à taux réduits, mais obtient un pourcentage des                                                                       those consensual arrangements between
    profits. Peut-être n’y aura-t-il aucun profit, mais s’il   Ann Tremblay a brossé un tableau du Projet national        commercial parties.
    y en a, l’intérêt perçu par le prêteur peut fort bien      sur le droit immobilier, tel qu’établi par l’ABC. Dans
    dépasser le seuil des 60 %. Le contrat serait alors        le cadre du projet, qui vise à développer des              We were advised by the Department of Justice
    inapplicable, parce qu’en violation du Code                normes et produits nationaux pour les avocates et          that currently the philosophy of the government
    criminel.                                                  avocats en droit immobilier et les notaires, des           was that section 347 of the Criminal Code was
                                                               rencontres ont eu lieu avec l’Association des              intended to be interpreted broadly which has
                                                               banquiers canadiens. Lors de cette rencontre, les          been confirmed by the Supreme Court of
    * Loi sur l’intérêt du Canada                              banquiers se sont dits inquiets d’éventuels
                                                                                                                          Canada in the Garland case, [1998] 35 C.R.
                                                               règlements fédéraux en vertu desquels un prêteur
    Certaines dispositions de cette loi paraissent             devrait divulguer à l’avance les frais juridiques s’il a
                                                                                                                          112.
    désuètes, notamment l’article 6 qui parle d’intérêt        le choix de l’avocat ou du notaire.
    payable d’après le système du fonds                                                                                   It is my recommendation that this should be a
    d’amortissement, sans offrir de définition de fonds
                                                                                                                                                       continued on page 3




2
Meeting...                                           department as tenant from pledging its interest     residential lenders to allow a purchaser of
continued from page 2                                in the lease as security to a mortgage lender.      residential real estate to designate the solicitor.
                                                     Justice advised us that this can be done subject    The legislation does not apply to corporate
matter for review by the Legislative Reform          to the regulations. While the assignment must       loans.
Committee.                                           be absolute, there are ways of securing the
                                                     lender, for example: a power of attorney may be     However, it appears that the federal government
                                                     given by the owner directly to the lender. We       wishes to require lenders to disclose legal
2. The Interest Act of Canada                        were referred to the Regulations - C.R.C.           charges regardless of who designates the
                                                     volume 6, chapter 675, page 4629, amended by        solicitor. This creates a practical problem for
Some provisions of this Act appear to be             S.O.R. 81 - 339; 82 - 726; 91 - 35; and 83-259.     lenders who administer loans centrally from
antiquated and are not of commercial benefit.                                                            one location across the country, since solicitors’
The question is should they be overhauled? For                                                           fees vary significantly from one jurisdiction to
example, Section 6 refers to interest payable on     6. Chattels Collaterally Pledged to                 another. Title insurance companies, however,
a “sinking fund plan” however, the Act does not         Mortgage Lenders                                 offer one national rate.
define a “sinking fund plan” nor does there
appear to be judicial interpretation on what this    Chattels can be moved very easily among             The Canadian Banker’s Association has
means. Many commercial lenders charging              provinces and there has been a suggestion by        commented that this will give title insurance
monthly interest will set up a prepaid interest      real estate lenders who sometimes take              companies a distinct advantage over law firms.
account usually referred to as an “interest          collateral charges on chattels that there should    Title insurance companies are now recruiting
reserve fund.” Is this a “sinking fund plan?” If     be a national Personal Property Registry (other     lawyers in all provinces to handle the
so and if the mortgage does not give the             lenders, such as automobile lenders, would also     conveyancing as a package along with
equivalent rate of interest calculated yearly or     welcome this). Justice advised us, however, that    preparing the report to the title insurance
half yearly not in advance, the lender may be        this is not under federal jurisdiction and it       company. The lawyers will collect a set fee
prohibited from collecting interest.                 would require an interprovincial agreement          from the purchaser which includes the title
                                                     among Provinces to establish a national             insurance fee. The lawyer’s portion of the fee is
The Department of Justice suggested that we          Personal Property Registry.                         quite low in return for the promise of high
contact it with our concerns.                                                                            volume. Their mantra appears to be “lose a
                                                                                                         little on each deal but make it up in volume.”
                                                     7. Update on Title Insurance as it
3. GST and the Issue of Super Priority                  Applies to Provinces Operating                   We should lobby the federal government to
                                                        Under the Torrens System and                     pattern the legislation after Alberta’s so that
Under the Excise Tax Act, section 222 creates a         Registry Systems                                 lenders are not required to disclose solicitor’s
trust for unpaid GST in favour of the                                                                    fees where the solicitor is designated by the
government which becomes enforceable under           Ann Tremblay gave a report on this item. She        purchaser. If the Project is able to achieve this,
the Income Tax Act creating a super priority         explained why the National Real Estate Project      then a National Title Insurance Program or the
over secured lenders.                                was established by the Federation of Law            insurance program currently being instituted
                                                     Societies and the CBA. She explained that one       under the Western Torrens Project could
We were advised by Justice that on October 20,       of the objects of the Project was to establish a    compete with title insurance companies.
2000 that Parliament passed an amendment             national form of reporting for lawyers to
excluding registered land mortgages from this        national real estate lenders and similarly a more   Ann Tremblay also reported that it does not
super priority. It should be noted, however, that    standardized form of instruction by national        appear that the “closing centres” set up by title
the super priority would still exist over            lenders to lawyers.                                 insurance companies in Ontario are working
collateral security that may be given to a                                                               that well.
mortgage lender such as a General Security           Meetings have been held between
Agreement over chattels and inventory.               representatives of the National Real Estate         She also gave a brief report on the Project’s
                                                     Project and the Canadian Banker’s Association.      review of the feasibility of lawyers trading in
4. Discharges of Federal Judgments                   One of the items of concern expressed by the        real estate as currently is being done in
   under the Income Tax Act                          Canadian Banker’s Association was with              Scotland and New Zealand. British Columbia is
                                                     respect to the federal government’s proposed        in the forefront of this investigational study.
Some real estate practitioners have expressed        Cost of Borrowing Regulations which will
concerns about delays in obtaining discharges        attempt to harmonize disclosure requirements
of Federal Judgments for arrears of income tax       by federally regulated real estate lenders, such    Summary
which are registered against titles by the federal   as banks and insurance companies, with similar
government. The department advised that they         legislation to be passed by the Provinces.          In closing, it was felt that the meeting was quite
were not aware of any concern in this area and       Alberta has recently passed the Fair Trading        productive and the representatives of the
we were advised to contact them if anyone has        Act 1998, chapter f-1.05, which is intended to      Department of Justice were very attentive and
a specific case.                                     be a base model for the federal legislation.        concerned with our proposals. The next meeting
                                                                                                         is scheduled for October 12, 2001.
                                                     Under the Alberta legislation, a lender must
5. The Financial Administration Act of               disclose to the borrower in advance the legal
   Canada - Sections 67 and 68 (2)                   fees and charges of the lender’s solicitor if the
                                                     lender designates the solicitor. If the borrower
These sections appear to prohibit a landlord         designates the solicitor then this onus is not
holding a lease with a federal government            imposed on the lender. It is customary for


                                                                                                                                                               3
Conveyancing practice across Canada
By Richard M. Wenner                                         interesting! In the room were real estate                residential purchase and mortgage ranges from
Secretary Treasurer                                          solicitors from Alberta, Manitoba, Ontario and           $300.00 to $450.00 plus disbursements and
National Real Estate Property Section                        Nova Scotia. Both big and small firms were               taxes regardless of the purchase price paid for
Cherrington Easingwood Kearl Critchley                       represented.                                             the home.
Wenner Fort Langley, B.C.
                                                             I found the following to be of interest:                 Fees charged by conveyancing solicitors are not
I have had the good fortune to chair the Greater                                                                      increased in those jurisdictions which do not
Vancouver Real Property Section of the                       Title insurance: The title insurance companies           have the benefit of a Torrens system of land
Canadian Bar Association for the past two                    have established a presence right across the             registry or “indefeasibility”. Indefeasibility
years. One of the perks to this position is that             country. The result is that residential mortgage         means that the land title search, which indicates
the chair is entitled to attend the annual meeting           refinancing has been taken out of the hands of           the legal status of the property, is guaranteed by
of the National Real Property Section of the                 solicitors and placed in the hands of the loans          the government (subject to fraud and certain
Canadian Bar Association in Ottawa.                          officers at the financial institutions. In the event     other statutory exceptions). The search can be
                                                             of errors or omissions, the loss is apparently           conducted quickly and inexpensively.
I expected nothing from the meeting - other                  covered by title insurance.
than the opportunity to escape the pressures of                                                                       Land Titles Practice: Solicitors in British
the office for a couple of days. I had anticipated           Conveyancing solicitors fees: I had previously           Columbia take for granted the benefits of
that the meeting would be one of those dreadful              assumed that in jurisdictions which did not have         indefeasibility. We also take for granted the
affairs in which you have to sit still for several           a Torrens System of land registry that solicitors’       accepted closing procedures which have long
hours and pretend you are interested.                        fees would reflect the additional cost of the            been established in this jurisdiction. The
                                                             conduct of the search. Not so! The average fee           members of our profession have developed
The reality was that the meeting was                         charged by solicitors across the country for a           closing procedures which, through the use of
                                                                                                                      undertakings, permits solicitors to close the
                                                                                                                      transaction and to release the sale proceeds to
    PRÉCIS                                                                                                            the vendor on the completion date while
                                                                                                                      concurrently avoiding time consuming and
    Les transactions immobilières à travers le Canada                                                                 costly meetings between solicitors, or their
                                                                                                                      agents, at the Land Title Office.
    À titre de président de la Section de droit immobilier     avantages de l’indéfectibilité (régime
    du grand Vancouver de l’Association du Barreau             d’enregistrement garanti par le gouvernement,          A great deal of time and energy is being
    canadien, j’ai eu le privilège de pouvoir assister à       permettant aussi une recherche rapide et peu           devoted in the other provinces to achieve what
    l’assemblée annuelle de la Section nationale de            coûteuse).                                             we in B.C. have been taken for granted. Other
    droit immobilier, à Ottawa.                                                                                       provinces have very different closing
                                                             Dans d’autres provinces, les pratiques de clôture
    Je n’avais pas d’attentes particulières en m’y           d’une transaction immobilière varient beaucoup. En
                                                                                                                      procedures:
    rendant, autre que d’échapper aux pressions du           Alberta, par exemple, la tradition veut que l’acheteur
    bureau pour quelques jours. Je m’imaginais qu’il         prenne possession de la maison seulement lorsque         In B.C. the accepted practice is to register in the
    s’agirait d’une de ces rencontres où vous devez          l’enregistrement est complété et les argents payés       Land Title Office and for the purchaser’s
    rester assis heure après heure et faire mine que         au vendeur. Au Manitoba, le vendeur cède la              solicitor to release the sale proceeds to the
    vous êtes intéressé.                                     propriété avant d’avoir été payé.                        Vendor’s solicitor on the strength of the
                                                                                                                      pending registration. The B.C. Land Title Act
    Or, surprise, ce fut intéressant ! Dans la salle         En Ontario, on a entrepris de dépenser près d’un
    étaient présents des avocats en droit immobilier de      milliard de dollars pour transformer le régime
                                                                                                                      stipulates that once registration has been
    l’Alberta, du Manitoba, de l’Ontario et de la            d’enregistrement des droits immobiliers fondé sur la     completed by the Land Title authorities, the
    Nouvelle-Écosse. De grands et de petits cabinets.        common law britannique en un régime qui                  date of registration is retroactive to the date and
                                                             embrasse l’indéfectibilité.                              time of the initial filing.
    J’ai notamment appris que :
                                                             Quant au système d’enregistrement de la Nouvelle-        In Alberta and Manitoba money is not released
    * les compagnies d’assurance-titres ont maintenant       Écosse, il n’a pas changé depuis 250 ans! Un
                                                                                                                      by the purchaser’s solicitor to the vendor’s
      un pied-à-terre partout au pays. Le                    avocat de la vallée d’Annapolis nous a informés
      refinancement des hypothèques résidentielles           qu’il effectuait personnellement les recherches de
                                                                                                                      solicitor on the date of filing for registration in
      passe ainsi entre les mains de préposés aux prêts      titres au bureau d’enregistrement. La semaine            the Land Title Office. The practice in these
      d’institutions financières. En cas d’erreur ou         dernière, il a consacré trois-quarts d’une journée de    jurisdictions is to either register in advance of
      omission, la perte est couverte par l’assurance-       travail à une seule recherche et la facture totale au    the closing date in the hope that registration
      titres.                                                client est demeurée à 300 $.                             will have been completed by the Land Title
                                                                                                                      Office authorities on the completion date or,
    * la facture moyenne d’un avocat, pour une                                   *******
                                                                                                                      alternatively, to register on the completion date
      transaction immobilière résidentielle, oscille entre
      300 $ et 450 $, plus débours et taxes — peu            Récemment, mon voisin a vendu sa maison et je            and then wait the several days required by the
      importe le prix de la maison et peu importe les        me suis chargé de la transaction, pour mon prix          Land Title Office authorities to complete the
      efforts de recherche au bureau d’enregistrement.       habituel de 350 $. Après la vente, mon voisin n’a        registration process before releasing the sale
                                                             pas hésité à débourser 400 $ à un service de             proceeds to the vendor’s solicitor.
    * les avocats en droit immobilier de Colombie-           collecte des déchets pour se débarrasser de vieux
      Britannique tiennent trop pour acquis les              meubles et de bric-à-brac...                                                          continued on page 5


4
Conveyancing...                                             Once complete, registration of transfers and               back to 1860. He could not charge for it. The
continued from page 4                                       mortgages will be done electronically by                   market would not bear it. The competition in
                                                            solicitors through their computer modems                   his city was too stiff. The Halifax lawyer who
                                                            without having to leave their offices. However,            attended the meeting said that his fees for this
It is my understanding that the practice in                 there is terrific resistance in the Real Estate Bar        service would be in the range of $500.00 to
Alberta is to not to vacate the property until              to abandoning the concept of the meeting at the            $550.00 inclusive of the land registry search.
registration has been complete and the money is             Land Title Office. The party responsible for
paid to the vendor. I was informed that in                  implementation of the program went on at great             In Nova Scotia there is a movement to convert
Manitoba the accepted practice is for the vendor            length about the problem (as he perceived it) of           their system to one incorporating a limited form
to give up possession of their land before they             how the purchaser and vendor would                         of indefeasablity by the year 2010. The
receive their money! If there are a series of               physically exchange the sale proceeds in the               proposed system, once implemented, would
transactions which depend upon the first                    absence of a meeting at the Land Title Office.             provide a limited form of indefeasablity in
transaction to close, then all parties must wait.                                                                      which the guarantee would be provided by the
One of the primary objectives of my                         The land registry system in Nova Scotia has not            Bar and not by the government! The hope is
counterparts in the real property branch sections           changed since its introduction in that                     that after ten years the government would
in Alberta and Manitoba is to develop a                     jurisdiction 250 years ago. To conduct a land              assume the guarantee of indefeasablity.
procedure in which registration and completion              registry search requires a visit to the local Land
can be effected on the same date!                           Registry by a lawyer or qualified land title
                                                            agent (of which I was informed there are very                              *******
In Ontario the problems are more intractable.               few). One must search the root of title going
They are currently spending almost one billion              back a minimum of 40 years. However, to                    Recently, my neighbour sold his home. I
dollars to transform their British common law               obtain the root may require a search going back            attended to the legal work and charged my
based land registry system to a land titles                 as much as 100 or more years before the                    usual fee of $350.00 inclusive of fees and
system which embraces indefeasibility. They                 solicitor can opine as to the validity of the title!       disbursements. After the sale was complete, my
expect the conversion to take at least five years.                                                                     neighbour casually told me that he had to
It is fraught with complexity as every single               Each lawyer is, by law, required to maintain a             quickly dispose of his old furniture and related
parcel of land in Ontario must be searched with             record of all land registry searches conducted             junk. He was pleased when a private trash
the results guaranteed by the Ontario                       by his or her office. If the lawyer has conducted          removal service agreed to quickly dispose of
government.                                                 a prior search of the subject property, or even            several roomfuls of his refuse for only $400.00.
                                                            an adjoining property, then the burden may be a            Conveyancing solicitors should take heed.
The new system, once implemented, will                      little easier. The solicitor from the Annapolis            When the day comes that the garbage man is
provide for full computerization of the Ontario             Valley told us that he personally conducts all of          paid more than the lawyer, there is something
Land registry (something only partially                     his land registry searches. In the past week one           seriously wrong!
achieved at this time). More significantly, the             of his searches required that he search back to
new system requires that the legal status of each           1860. The effort took three quarters of his day.
and every parcel of land in Ontario be                      His average fee for a purchase and mortgage is
researched and the results subsequently                     $300.00 plus disbursements and taxes.
                                                                                                                        In Rem is published by the CBA’s National
guaranteed by the Ontario government. They                                                                              Real Estate Property Section. We invite your
seek to have a universal system of indefeasible             This price includes the cost of the search. He
                                                            would not be charging any more for the search               comments.
title by the year 2005.
                                                                                                                        In Rem est publié par la Section nationale du
                                                                                                                        droit immobilier de l’ABC. Vos commentaires
  Une solution...                                           immobiliers à leur clientèle.
                                                                                                                        sont bienvenus.
  suite de la page 1
                                                            Les orientations futures du Projet
                                                                                                                        Editor/Rédacteur : Richard M. Wenner
 l'immobilier, partout au Canada. L’ABC et la FOPJC         Malgré les progrès réalisés dans le cadre de ce             Production/Réalisation : Kristina Davis
 dirigent et financent le projet de façon conjointe. La     Projet, les problèmes nationaux liés aux transactions       Design/Conception graphique : Ken Watson
 direction du Projet a été confiée à un Comité national     immobilières persistent et se font jour au sein du          Translation/Traduction : Pierre Allard
 conjoint sur l’immobilier, composé d'un président pour     marché immobilier. Les priorités à venir du Projet          French Edit/Révision : Gaëtane Lemay
 l'ABC et d'une présidente pour la FOPJC et d’autres        pourraient comprendre la mise en oeuvre d'un cadre
 membres représentant chacune des organisations.            de rechange de prestation des services ou le Lawyers
                                                            Property Exchange, l’élaboration de documents de
 État du Projet                                             publicité et de marketing pour promouvoir le rôle des
                                                            praticiens en droit immobilier en matière de
 Le Projet en est à la troisième et dernière année de       transactions immobilières et l'accessibilité aux
 son mandat. L'accomplissement des trois priorités du       systèmes d'information géographique du secteur
 Projet identifiées par le Comité conjoint, en août 2000,   public.                                                     Canadian Bar Association/
 va bon train et nous prévoyons les achever à                                                                           L’Association du Barreau canadien
 l'automne 2002. Ces priorités comprennent une              Le Comité national sur le droit immobilier est en train     902-50 O’Connor
 approche nationale à la certification des sûretés          d'examiner la possibilité d'adopter un second mandat
                                                                                                                        Ottawa, Ontario K1P 6L2
 hypothécaires pour les institutions de prêts,              de trois ans pour le Projet afin de régler les problèmes
 l’uniformisation des normes régissant la clôture et        et obstacles posés aux pratiques de transactions
                                                                                                                        Tel/Tél. : (613) 237-2925
 l'élaboration d’un cadre pour un modèle de rechange        immobilières et à l'intérêt public et d'administrer et      Fax/Téléc. : (613) 237-0185
 pour la prestation des services permettant aux             d'accomplir les objectifs futurs du Projet.                 www.cba.org
 praticiens d’offrir une gamme plus large de services



                                                                                                                                                                          5
Changes to residential real estate practice
By Jack Dunphy, Chair                                     Conveyancing protocol                                  Ongoing contact with lenders is indicating
Alberta Conveyancing Advisory Committee                   Each jurisdiction has developed a                      significant interest and buy-in for the practice
Western Law Societies Conveyancing Project                conveyancing protocol for the use of                   changes. A significant amount of effort will
                                                          conveyancing practitioners in their province           continue to be expended in informing
For a number of years, the western law                    which detail the practice changes. In Alberta,         stakeholders about the benefits of the new
societies of Alberta, British Columbia,                   the main practice changes in the protocol are          program.
Saskatchewan and Manitoba have been                       as follows:
working to develop a streamlined and                                                                             Contact with realtors
restructured residential real estate practice to          • To allow for the release of mortgage                 The brochure, Quick and Efficient Real Estate
meet the needs of a changing conveyancing                   proceeds and other purchase funds on                 Closings, is a valuable marketing tool for
marketplace. The fruit of these efforts, the                closing, for the mutual benefit of the buyers,       practitioners which was developed to inform
Western Law Societies Conveyancing Project,                 sellers and lenders;                                 the real estate industry of this initiative to
introduces a new and re-engineered                        • To enable lawyers to satisfy the unique              improve and streamline the closing process.
conveyancing practice designed to:                          security requirements of lenders without             As key stakeholders in the conveyancing
                                                            obtaining a current real property report;            marketplace, realtors need to be informed of
• expedite the residential mortgage process for           • To provide a short form report to lenders.           the benefits of the revised practice standards,
  lenders,                                                                                                       particularly for buyers and sellers. The bottom
• ensure consumers have continued access to               The protocol is available on the Law Society           line for realtors is that they should receive
  independent legal advice, and                           of Alberta’s Web site at:                              their commissions earlier because of the
• preserve the integrity of the land title system         www.lawsocietyalberta.com.                             quicker closing process that is introduced by
  and surveys in western Canada.                                                                                 the protocol. The brochure is available
                                                          Contact with lenders                                   through the Law Society of Alberta.
As of February 15, 2001, the practice changes             A brochure entitled Enhanced Legal Services
are available to practitioners across the four            for Lenders has been developed for use by the          Role of the insurer
western provinces. The practice changes are               project and practitioners to assist in marketing       Our insurers, the Canadian Lawyers Insurance
new tools for use by real estate practitioners            the new conveyancing practice across western           Association (CLIA) and the actuaries who
to help facilitate a more streamlined                     Canada to their lender clients. Copies of the          provide advice to the Law Society of Alberta,
residential conveyancing process. The                     brochures are available from the Law Society           have been integrally involved in the process.
following strategies were employed in                     of Alberta by contacting Michelle Riches or            They have approved the new protocol and the
implementation of the project:                            Sarah Emslie via fax at (403) 228-1728.                practice changes. In addition to no deductible
                                                                                                                 for claims (as is the current situation for all
                                                                                                                 claims), the Alberta Lawyers Insurance
    PRÉCIS                                                                                                       Association has indicated that there will be no
    Modifications à l’exercice du droit immobilier résidentiel                                                   insurance surcharge levy charged to lawyers
                                                                                                                 for claims pursuant to the practice changes.
    Depuis un certain nombre d’années, les barreaux       province a créé son propre protocole à l’usage des
                                                                                                                 Do you need help with the protocol?
    de l’Alberta, de la Colombie-Britannique, de la       avocats et avocates en droit immobilier. En Alberta,
    Saskatchewan et du Manitoba travaillent à             le barreau a publié à l’intention des prêteurs une     The Law Society of Alberta has a list of
    l’élaboration d’une pratique uniformisée du droit     brochure détaillée intitulée Enhanced Legal Services   practitioners who are familiar with the
    immobilier qui répond aux les besoins d’un marché     for Lenders, et une deuxième brochure pour les         protocol and the practice changes and who are
    en évolution.                                         agents d’immeuble intitulée Quick and Efficient Real   available to assist real estate practitioners with
                                                          Estate Closings.                                       questions and concerns arising from the
    Le fruit de ces efforts, le Western Law Societies                                                            changes. In addition, a list of the Top Ten
    Conveyancing Project, introduit une pratique à la     Une liste de praticiens familiarisés avec le nouveau
    fois nouvelle et restructurée qui :                   protocole est disponible sur le site Web du barreau
                                                                                                                 Questions and Answers is also available.
                                                          albertain à www.lawsocietyalberta.com. Ces
    * accélère le processus des transactions              experts pourront répondre aux questions et aux         In conclusion
      immobilières pour les prêteurs;                     inquiétudes des avocats en droit immobilier.           This project was accomplished utilizing the
    * assure aux consommateurs l’accessibilité d’un                                                              combined resources of all four western law
      conseiller juridique indépendant; et                Avant de mettre en oeuvre ces modifications, le        societies. Although they all have a similar
    * protège l’intégrité des régimes d’enregistrement    Barreau de l’Alberta a effectué une vaste
                                                                                                                 public title registration and information
      des droits immobiliers dans l’Ouest canadien.       consultation en collaboration avec les practiciens
                                                          en immobilier.
                                                                                                                 system, the conveyancing practice in each of
    La nouvelle procédure permet de libérer les fonds                                                            the provinces has evolved in distinctive ways.
    hypothécaires le jour même de la transaction          En dépit de différences dans les régimes               Notwithstanding these differences, the four
    immobilière, de satisfaire aux exigences de sûreté    d’enregistrement des droits immobiliers, et ce dans    law societies have identified common goals
    des prêteurs et de fournir un formulaire uniformisé   chaque province, les quatre barreaux ont ainsi         and methods to achieving these goals.
    (short form report) aux prêteurs.                     réussi à identifier des objectifs communs et des
                                                          méthodes pour les atteindre. Le projet démontre
    À compter du 15 février 2001, ces modifications       comment le barreau peut renforcer la capacité de
    ont été rendues disponibles aux praticiennes et       nos membres d’offrir de précieux services au
    praticiens des quatre provinces de l’Ouest. Chaque    public.



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