Sale of a Residential Property in British Columbia

Comprehensive Conveyancing Manual for the Sale and Purchase of Residential Property in British Columbia

Table of contents

Sale of Residential Property

1. Overview of Conveyancing in a Sale Transaction

Conveyancing is the legal process of transferring property ownership. The lawyer/conveyancer ensures compliance with BC law and safeguards the client’s interests.

2. Initial Client Interaction

2.1 Opening the File

  • Obtain a copy of the Contract of Purchase and Sale (CPS) from the realtor or client.
  • Verify the seller’s identity with government-issued photo ID (BC ID, Driver’s License, Passport).
  • Collect all necessary client details (full name, address, contact information).
  • Confirm how the client holds title (e.g., sole ownership, joint tenancy, tenancy in common).

2.2 Explaining the Process to the Client

  • Provide an overview of the timeline and key steps.
  • Discuss the importance of clear title and any mortgage discharge requirements.
  • Inform them about potential costs, including legal fees and disbursements.
  • Set expectations for closing day, including signing requirements and fund transfers.

3. Title Search and Due Diligence

  • Access the Land Title and Survey Authority (LTSA) system.
  • Obtain a State of Title Certificate.
  • Review for charges, liens, mortgages, or easements.
  • If issues are found, notify the client and discuss resolution.

3.2 Reviewing Financial Encumbrances

  • Identify outstanding mortgages, lines of credit, or tax liens.
  • Contact the lender for a mortgage payout statement.
  • Ensure a Discharge of Mortgage form is prepared for submission post-closing.

4. Preparing Closing Documents

4.1 Essential Documents

  • Statement of Adjustments: Outlines financial details such as property taxes, utility adjustments, and net proceeds.
  • Form A (Freehold Transfer): Signed by the seller to transfer title to the buyer.
  • Seller’s Declaration: Confirms that the seller is a resident of Canada for tax purposes (Form T2062 for non-residents).
  • Discharge of Mortgage (if applicable): Submitted to remove the lender’s interest in the title post-payment.

5. Closing the Transaction

5.1 Signing Appointment with the Seller

  • Verify the seller’s ID again and ensure all documents are correctly signed.
  • Ensure the seller understands all documents before signing.

5.2 Receiving Funds

  • Buyer’s lawyer sends purchase funds via trust account transfer.
  • Hold funds in the trust account until registration is confirmed.
  • Pay out mortgage discharge and any outstanding liens.
  • Release net proceeds to the seller.

5.3 Registering the Transfer

  • Submit Form A via the LTSA e-filing system.
  • Confirm registration and obtain a new State of Title Certificate showing the buyer as the new owner.

5.4 Reporting to the Client

  • Provide a final report, including a copy of the registered transfer, mortgage discharge confirmation, and final statement of adjustments.

guide to conveyancing for both sale and purchase transactions in British Columbia. Adherence to these procedures will ensure a smooth and legally compliant process for all parties involved.

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