Online Notaries Are Coming

On May 12, 2020, Ontario introduced and passed Bill 190, the COVID-19 Response and Reforms to Modernize Ontario Act, 2020 (“Bill 190”). Among the many changes included in Bill 190 is an amendment to the Notaries Act removing the requirement for a Notary to be in the physical presence of the person with respect to whom the Notary is exercising his or her powers.

 

Regulations will be required before online notarization is a reality, however, we can look at U.S. states that have adopted online notarization to understand what it will look like. A client will upload their document to a portal. The client will then connect with the Notary in a video conference where the parties can simultaneously view the document and each other. The Notary verifies the client’s identity visually using scanned photo ID, and then witnesses as the client electronically signs the document. Similar to how a traditional Notary operates, the Notary signs and places his or her notarial seal on the document.

What is Estate Administration?

Estate administration is the process of winding up the affairs of a deceased person. Often the estate administration process is referred to as probate. The process usually involves closing bank accounts, paying out debts, selling a house or other property, paying final taxes, and delivering funds to the deceased person’s beneficiaries. My goal is to make this process move quickly and minimize stress to everyone involved.

Important New Consideration for Private Lenders

Federal Court of Appeal Requires TD to Turn Over Mortgage Payout

Lending decisions by banks and private lenders hinge on knowing what debts a borrower has. If a borrower has significant debts it is likely they will have trouble making their payments. Lenders also want to be sure that the value of the property will cover the loan if the borrower can’t make their payments.
 
In light of these concerns, a new issue has arisen for Lenders with a decision from the Federal Court of Appeal. The Borrower owned a landscaping business and was responsible for collecting and remitting GST (now HST), however, he had fallen into arrears and owed the Canada Revenue Agency (“CRA”) $67,854. TD not knowing these arrears existed loaned the Borrower funds for a mortgage and line of credit. The Borrower then proceeded to sell the property and the mortgage and line of credit were paid out and discharged from the title of the property. Again, when TD discharged the mortgage they had no knowledge of the Borrower’s tax arrears.
 
CRA then several years after the sale of the property asserted against TD the deemed trust provisions under the Excise Tax Act. The deemed trust provisions essentially provide that anyone holding property of the debtor (the Borrower in this case) is holding it in trust for CRA to pay GST arrears. (now HST). TD refused to pay the Borrower's GST arrears and CRA commenced legal action.
 
In the case, CRA won at the Federal Court level and TD appealed the decision to the Federal Court of Appeal. CRA won again when they dismissed TD's appeal.
 
The Court of Appeal noted that Parliament had amended the Excise Tax Act to give a super-priority to the deemed trust provisions overall creditors including secured creditors including lenders such as TD.
 
It's important to note that the super-priority rules for deemed trust provisions do not apply to bankruptcy. The result is that a secured lender such as TD would be better off if the Borrower had gone bankrupt as the TD loan would likely have ranked ahead of CRA regarding the GST arrears.
 
What should lenders do to protect themselves? At a minimum, lenders should request confirmation from CRA that HST remittances are up to date for any self-employed borrowers before approving a mortgage. In addition, lenders would be wise to check for HST arrears annually during the term of loan.
 
See case link: Toronto-Dominion Bank v. Canada, 2020 FCA 80

Why You Need an Ontario Real Estate Lawyer to Sell Your Home

Although most people hire real estate agents when selling their property, most don’t think about hiring a real estate lawyer. However, hiring the latter is a smart decision because they can provide a number of services that a real estate agent can't. There are a number of reasons why it’s a good idea to hire a London real estate lawyer to sell your home:

1. Your Interests are Protected

When you hire a real estate lawyer, they will work to ensure your interests are protected. They will review all the legal documentation, related paperwork, and forms, which can make it easier for you to be sure about the paperwork you are signing.

 2. Prevent Unexpected Problems

A good real estate lawyer in London can help prevent unexpected issues related to the property’s title. They can be of great assistance in case there are any liens on the house. Finding out about these types of potential issues early can save you a significant amount of time, expense and hassle down the line. When you hire a London real estate lawyer to sell your home, you have peace of mind that you won't have to deal with any sudden problems down the line.  

3. Help with Negotiations

If you require any negotiations in the course of the selling process, particularly in regards to different terms of the agreement, your real estate lawyer can provide guidance, advice, and assistance. Having a good lawyer in your corner can considerably increase the chances of the negotiations’ outcome being in your favour, rather than in the favour of the buyer.

If any offers or counter offers have been made on your home, it can be very helpful to consult a good lawyer because there can be certain tax implications on these; you’ll want to ensure they are handled expertly and efficiently. As long as these matters are handled carefully, prudently and smartly, you’ll be able to accomplish your goal successfully.

4. Sale Closure

An experienced London real estate lawyer can also help ensure that everything is in order when its time to close the property sale. They will make sure that the required insurance is in place and that transfer of the security deposits has taken place correctly. The lawyers will also attend the closing of the home sale; they will make sure that everything goes as expected. This means you don’t have to worry about dealing with any last minute surprises.

Although you’ll have to pay the real estate lawyer their fee, you will find that the expense is well worth it. If the real estate sale isn’t handled properly, that can make you liable to pay fines or fees and these expenses can be avoided by hiring an experienced lawyer.

For information about our legal services, feel free to contact Peter Norris at (226) 402-0823. You can also send us your queries and request for an appointment via this Online Form and we’ll call you back to schedule an appointment.

Why You Need an Ontario Real Estate Lawyer to Buy a Home

Buying a home represents a significant investment and it’s something you might do only a few times in your lifetime. Prospective homebuyers conduct large amount of research to learn as much about the home purchase process as possible; but that isn’t a match for the knowledge and experience a professional brings to the table.

Fortunately, there are legal professionals who will work with you to ensure your interests are protected while you go through the different stages of the home buying process. Take a look at why you need a London real estate lawyer to buy a home:

1. Your Lawyer will Carefully Review the Sale Contract

It’s not easy to understand legal jargon. What can make matters worse is that you may not peruse all the documents carefully before signing on the dotted line. By working with an expert real estate lawyer in London, you will have a clearer understanding of the terms of your contract. If there are certain points that aren’t in your favour that can pose a problem in the future, the legal expert will inform you about it. 

2. The Lawyer Will Ensure that Everything Moves Forth Smoothly

Regardless of the size or location of the property you propose to buy, working with a skilled real estate lawyer is one way to ensure that everything moves without a glitch from start to end. This legal professional will represent you when you can’t be present. The fee you pay them is more than worth all the time and trouble they save you. 

3. The Title Search will be Carried out by Your Lawyer

When you are purchasing any property, you need to know for certain that the seller actually has the right to sell. There are times when family disputes surround the tiles or some titles may still have liens against them; all of these situations can make it impossible to purchase the house. Your lawyer will conduct a title search to ensure there are no such problems with the property you plan to buy. 

4. Handling all the Paperwork

There are a number of details and technicalities that come into the picture when you are buying a home. You need to know where the title transfers have to be filled (with the city of residence/your county) and whether they need to be filed. If you are required to, you also need to be aware of which processes to follow to ensure smooth transfer of the property into your name. Working with a lawyer is an advantage, because they will handle all the legal aspects including all this important paperwork. 

Regardless of which way you look at it, hiring a skilled and experienced lawyer is the one way to cover all your bases; the peace of mind it provides is well worth the money. For information about our legal services, feel free to contact Peter Norris, a real estate lawyer in London at (226) 402-0823. You can also send us your queries and request for an appointment via this Online Form and we’ll call you back to schedule an appointment.