Model Reporting Letter – Initial Letter to Purchasers
Date: April 2002
Questions / Comments? Please contact a Practice Advisor
Copyright © 2002 The Law Society of British Columbia
Dear [client name]:
Re: [property and street address]
We are pleased to act for you with regard to the purchase of the subject property.
Information About Your New Property
We have now completed our Land Title Office search of the subject property. For your information, we enclose the following:
1. A Certificate of Title No. [number] showing title registered in the name of [name] [and] [name].
2. The following charges that will remain registered against the title to the property after you purchase it:
(a) building scheme No. [number]
(b) restrictive covenant No. [number]
(c) sewer right-of-way No. [number]
3. Plan No. [number].
Please read the enclosed material carefully and telephone me if you have any questions.
The enclosed plan shows the lot you are purchasing outlined in red. Inspect this plan thoroughly and advise us if this is not the correct lot to be purchased.
Our Work for You
To avoid any confusion or misunderstanding, we enclose a statement describing those services which we will perform for you and those services which we will not perform for you unless further specific arrangements are made.
Our fees in acting for you will be $[amount]. We estimate our disbursements to be approximately $[amount], which includes such matters as agent fees to search, register and deliver title to your new property, registration fees, courier fees, etc. In addition, there will be a number of adjustments to be made between you and the vendor, such as property taxes. We are in the process of obtaining information about these adjustments in order to prepare a Statement of Adjustments for you and for the vendor. Lastly, you will be responsible for paying to us so that we may pay to the Registry the property purchase tax in the amount of $[amount]. Prior to closing, we will advise you of the total amount of money you will need to provide, in addition to the mortgage proceeds which we will be receiving from your bank, in order to complete the financial arrangements for this purchase.
If you require additional legal services, such as the preparation of a mortgage or any items listed under "services which we will not perform without written agreement" on the attached statement, then our fees and disbursements will be increased accordingly.
If you are arranging a new mortgage, which we are to prepare, please make sure that we receive instructions from your lender in time to enable us to prepare the mortgage document and obtain the mortgage proceeds before your completion date.
We will be in touch with you again in due course. In the meantime, if you have any questions regarding the enclosed material or any aspect of your purchase, please feel free to contact me.
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List of services which we will perform
1. We will search the title to the subject property and will advise you as to any charges which, in our opinion, affect ownership of the property.
2. We will review your Contract of Purchase and Sale and advise you re same.
3. We will obtain a copy of the Land Title Plan for the subject lot for you.
4. We will ascertain the status of the taxes on the property and make sure that the outstanding taxes are paid.
5. We will ascertain the balance due under any financial obligations to be assumed by you and advise you as to the terms of repayment, due date and pre-payment privileges.
6. We will prepare a statement of adjustment showing the balance payable by you on closing.
7. We will prepare the necessary documents required to complete your purchase, and review these documents with you. We will arrange for registration of the appropriate documents at the Land Title Office for you.
8. We will confirm that title to the property has been accepted for registration at the Land title Office, free of all financial and other encumbrances except those which you have agreed to, other than any new mortgage financing, which you have arranged. However, we cannot provide you with protection against any unregistered claims which may be advanced by governmental agencies in priority to your interests.
9. We will pay the purchase monies on your behalf and report to you regarding the completion of this transaction.
10. If asked to do so by your mortgage lender, and you agree, we will prepare the mortgage documents for both you and the lender, provided both you and the lender sign a required letter about this joint representation.
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List of services which we will not perform without a written agreement
1. We will not obtain a survey or a survey certificate unless required by your mortgage lender, or unless you specifically request same.
2. We will not guarantee that the house or any structures you are purchasing are legally located on the subject lot, or otherwise meet municipal requirements.
3. We will not guarantee that any rental accommodation is legal.
4. We will not make any inquiries or warranties as to the quality of the premises.
5. We will not hold back from the vendor any of the sale proceeds unless entitled or specifically authorized to do so in writing by both you and the vendor.
6. We will not arrange for your insurance coverage.
7. We will not make any inquiries as to zoning.