WESTERN LAW SOCIETIES CONVEYANCING PROTOCOL

Transcription

1 WESTERN LAW SOCIETIES CONVEYANCING PROTOCOL ) Thesematerialswerf:} preparecj byrandallsandbeck, ofoii~ewallf:}rzinkhan&wallerlawfirm, Regina., Saskatchewan for the Saskatchewan Legal Education Society Inc. seminar;support Staff Essentials, April20m5.... '..

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3 WESTERN LAW SOCIEITES CONVEYANCING PROTOCOL HISTORY AND SUMMARY OF PRINCIPLES The Protocol originated out of a desire to maintain the involvement of the legal profession in real estate transactions. Early steps were taken in 1997 by law societies in Canada to review similarities and differences in conveyancing practices across Canada. In 1998 Western Canadian Provinces operating in Torrens jurisdictions met to discuss common competitive elements such as delayed closings, survey/zoning delays, and simplification and standardization of opinions to lenders. In 1999 and 2000, Protocols were developed and approved by Western Law Societies, and a pilot project was run in Alberta. By 2001 each province involved in the conveyancing protocol developed its materials, and prepared continuing legal education programs. In Saskatchewan the legal education seminar entitled "Quick and Efficient Real Estate Closings - Changes in Conveyancing Practice" was presented in February, The seminar was presented by Randy Rooke, Randy Baker, Tom Schonhoffer and Randy Sandbeck. Since the initial presentation ofthe Protocol, there have been significant changes in real practice in Saskatchewan. In 2001and 2002 the Land Project proceeded and the previous paper based system was converted into the Saskatchewan Land Registry and the Saskatchewan Writ Registry. Lawyers and legal assistants have spent considerable time and energy in focusing on the "New World" method ofpractice. The Protocol was initially approved by Credit Unions in the province, and more recently for use by the Bank of Montreal, but the actual Protocol, Protocol Checklist and Trust Letter have not been updated since Now, the documents approved for use by the Protocol may be found at the Law Society ofsaskatchewan website. It is intended that the Law Society of Saskatchewan website will be used for the purpose of providing any updates or revisions to the Protocol and related documents, from time to time. Attached to these materials are the following: a. Document entitled "Principles ofthe Project" written by Randy Baker for use in the seminar in 2001 and reproduced with his kind consent;

4 - 2- b. Document "Features ofthe Western Law Societies Conveyancing Protocol (Saskatchewan) - written by Randy Sandbeck for use in the February, 2001 seminar and reproduced with consent; c. Western Law Societies Conveyancing Protocol for Saskatchewan April 2005; d. Trust Letter for use in Western Law Societies Conveyancing Protocol April,2005; e. Western Law Societies Conveyancing Protocol Checklist for Saskatchewan April, 2005; f Western Law Societies Conveyancing Protocol Solicitor's Opinion April, 2005.

5 THE WESTERN LAW SOCIETIES CONVEYANCING PROTOCOL PRINCIPLES OF THE PROJECT The Project was developed to address impediments to competitive residential real estate conveyancing in Western Canada. 1. Land Titles Office Delays in Registration Issue the intervening interest Strategies searching as the "first" and "last" steps in the transaction Insurance Concern vendor fraud is a risk 2. Dispensing with a Current Survey the survey "fabric" is sound in Western Canada most urban areas have compliance requirements at time of construction the survey protection is given to the lender and not the purchaser Issue failure to comply with zoning and building location bylaws encroachments on to and into the property -3- These materials were prepared by Randy Baker, QC for the SKLESI televised seminar "Quick & Efficient Real Estate Closings" Februray 2001.

6 Strategies review of all survey information that is available clear discussion ofrisks with purchaser will encourage up to date surveys being required risk will fall on the purchaser if no new survey obtained Insurance Concern such problems already exist in real estate practice problems can usually be "fixed" through encroachment agreements, repair ofthe situation or relaxation ofbylaws without significant expense since only lenders are covered, real "loss" is unlikely because of equity requirements and continually decreasing mortgage balances 3. Simple Reporting Issue loss arising from failure to comply with the lender's instructions Strategies the Protocol requires the lawyer to follow the lender's instructions the Solicitor's Opinion requires exceptions to the instructions to be noted the goal is to have lenders accept the Solicitor's Opinion without further reporting ofany kind but in the short term the Solicitor's Opinion will be promoted as the instrument authorizing the advance of funds Insurance Concerns no change the lawyer has always been insured for errors and omissions arising from failure to follow a lender's instructions -4- These materials were prepared by Randy Baker, QC for the SKLESI televised seminar "Quick & Efficient Real Estate Closings" Februray 2001.

7 the Protocol sets minimum standards common law standards of care continue the actual requirement for the lawyer to sign offon the Protocol checklist will ensure practice standards are observed and maintained 4. Protection for the Lawyer Issue liability for loss suffered by purchaser or lender Strategies risk is diminished by adhering to proper standards proper standards are defined if proper standards are fully observed, the lawyer is insured and the insurer will not require the lawyer to pay a "deductible" contribution to a loss or consider a payout to be a "paid claim" for calculating future surcharges Insurance Concerns acceptable minor increase in risk of loss from intervening registration, and from survey and zoning issues decreased losses resulting from overall enhanced proper practice standards -5- These materials were prepared by Randy Baker, QC for the SKLESI televised seminar "Quick & Efficient Real Estate Closings" Februray 2001.

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9 FEATURES OF THE WESTERN LAW SOCIETIES CONVEYANCING PROTOCOL (SASKATCHEWAN) I. Introduction: The Western Law Societies Conveyancing Protocol involves all four western provinces. The most significant developments are that a standard form of opinion will be offered to financial institutions operating in all four western provinces, and transactions can be closed on time. This will be advantageous for conveyancing practitioners and for financial institutions. Each province was able to develop its own protocol and procedure in relation to the initiative. In Saskatchewan, we have the benefit of the Saskatchewan Practice Checklist, published by the Law Society of Saskatchewan and Saskatchewan Legal Education Society Inc. These practice standards form the basis of the Protocol Checklist, and the efforts of the authors and commentators are hereby acknowledged. As a result of the Real Estate section of the Saskatchewan Practice Checklists, the Protocol and related documents required for this initiative are very concise. II. Key Features: Subject to documented compliance with the Protocol Checklist, lawyers enhance the services we offer: a. by closing the "registration gap". Now, from the date of submission to date of registration, is the "Insured Period" under the Protocol. b. by eliminating the financial institutions need for a Zoning certificate and a Real Property Report; c. by providing financial institutions a standard short form of report; d. by continuing the provision of legal services, potential defences arising from mortgage execution are reduced. III. Application: The Protocol applies to existing single-family residential property, including existing condominiums units. The Protocol applies to mortgages participating in favour of financial institutions, and will apply to mortgages for any purpose including financing the purchase price of land. The Protocol will also apply to "cash" transactions where the purchaser's solicitor certifies compliance. The Protocol does not apply in the following circumstances: a. New construction - The Protocol does not apply to new construction because of concerns surrounding issues such as:

10 - 2- i. absence of consistent construction contract terms; 11. impact of The Builders' Lien Act; 111. seasonal and/or deficiency holdbacks. b. Commercial financing and refinancing - The Protocol does not apply to commercial financing and refinancing because of concerns surrounding issues such as: I. variety of commercial purchase and refinance contracts and products; 11. interplay with asset purchases, security interests and potential priority issues; 111. liability and underwriting concerns.; c. Farm land mortgages and refinancing, including acreages - The Protocol does not apply to farm land mortgages and refinancing because of concerns surrounding issues such as: 1. at this time, the Protocol is designed for residential property, not for transactions of a commercial nature; 11. the Protocol and Protocol Checklist are not designed to include potential concerns under The Saskatchewan Farm Security Act; lll. liability and underwriting concerns. Any concerns as to the application of the Protocol can be addressed to Thomas J. Schonhoffer, Saskatchewan lawyers Insurance Association Inc. The use of the Protocol, and compliance with the Protocol Checklist, will result in the lawyer being insured for transaction, without the application of a deductible. IV. Purchaser's Interests: It must be stressed that the Protocol does not protect the lawyer from a deductible claim in relation to purchaser's claim for damages arising out of a surveyor zoning defect. The lawyer will be insured for loss incurred by a purchaser arising from error or omissions in relation to the registration of the transfer of land during the Insured Period. Therefore, it is recommended that each lawyer consider and implement a form of purchaser's acknowledgement of instructions. A sample format is attached. V. Protocol Closing Procedures: A significant benefit of the Protocol is that convenyancing practice will be more standard across the province. Through standard use of the Protocol Checklist by practitioners it is also anticipated that fewer practice claims may actually arise. It is the purchaser's solicitor that will

11 - 3 - be completing the Protocol Checklist and certifying compliance with the Protocol Checklist and issuing the solicitor's opinion for the transaction. However, as part of the Protocol Checklist, the purchaser's solicitor must carefully review trust conditions and undertakings. Agreement on the trust conditions and undertakings with the vendor's lawyer is essential. Use of an approved standard trust condition format will reduce possible conflict between solicitors. It will also mean that if proper use is made of the approved trust condition letter, there will be deemed compliance with the Protocol. It is possible that acceptance of trust conditions, other than the approved standard, may result in the solicitor not being able to rely on the coverage extended to the lawyer under the Protocol. The approved trust condition letter is attached. The Protocol Checklist establishes a critical closing procedure in relation to general registry searches. In many firms general registry searches will be done at the time of receipt of instructions. While this still may be good practice to determine whether any potential problems will arise as early in the transaction as possible, for the purposes of the Protocol Checklist it is extremely important that a general registry search be done on the working date prior to closing. The Protocol is designed to protect the solicitor against interests arising during the Insured Period only, not the entire period of time since the initial searches were conducted. Once the general registry searches have been performed, the Protocol Checklist must be reviewed in its entirety by the responsible lawyer and the certification must be completed prior to issuing the solicitor's opinion and closing the transaction. The post-closing obligations of the parties remain, pursuant to the trust conditions and undertakings. Therefore, if documents are rejected by the Land Titles office, the approved trust conditions address the responsibility to correct documents. We are moving to a system where Land Titles will not be checking the lawyer's work in the future for registration purposes, once on-line registration is available. Even so, minor changes to the approved trust letter, the Protocol and Protocol Checklist may be required in the next 18 months. This Protocol was designed to deal with the anticipated changes as a result of the automated-network development of the Land Titles systems as much as possible. It is anticipated that some minor changes to the approved trust letter may be required in the next eighteen months, but the Protocol and Protocol Checklist should require only minor amendments. Once the general registry searches have been completed and the Protocol Checklist has been reviewed and certified, the short-form opinion can be released, and the transaction can be completed by paying funds to the vendor's solicitor. As the Protocol protects both the Purchaser and the Mortgagee against intervening interests during the Insured Period, the Vendor's funds are immediately releasable by the Vendor's solicitor, subject to complying with trust conditions and undertakings. VI. Fees: No additional fee or charge is applicable to the use ofprotocol at this time. This enhanced service may warrant some consideration for legal fees to be charged consistent with the suggested tariff of fees.

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13 WESTERN LAW SOCIETIES CONVEYANCING PROTOCOL FOR SASKATCHEWAN I. Purpose of Protocol.This Protocol prescribes the conditions precedent to the issuance of a Solicitor's Opinion under the Western Law Societies Conveyancing Protocol by a Saskatchewan solicitor in a transaction involving existing single family residential property having four or fewer units, including existing condominium units ("Existing Residential Property"). The Solicitor's Opinion under the Western Law Societies Conveyancing Protocol will not apply to new construction, multi family dwellings of greater than four units, commercial property transactions, or agricultural transactions. The Protocol is not a statement of substantive law, and is to be read in the context of describing procedural conditions necessary for the issuance of a Solicitor's Opinion under the Western Law Societies Conveyancing Protocol in Saskatchewan. II. The Solicitor's Opinion under the Western Law Societies Conveyancing Protocol The Solicitor's Opinion under the Western Law Societies Conveyancing Protocol is an initiative of the Western provinces belonging to the Federation of Law Societies. It is also referred to as the "Western Torrens Project". The Solicitor's Opinion under the Western Law Societies Conveyancing Protocol is designed to allow participating lawyers the opportunity to expedite the closing of Existing Residential Property transactions. The properly issued Solicitor's Opinion under the Western Law Societies Conveyancing Protocol will: a. insure a lawyer for any loss incurred by a financial institution arising from intervening interests registered between the day before closing and the date of registration of the transfer and/or mortgage (the "Insured Period"); b. insure a lawyer for any loss incurred by a financial institution arising from errors or omissions in unknown zoning problems or relating to unknown encroachments concerning the boundary of the property, or the location of structures or improvements on the residential property, or adjoining properties, which may have a material adverse affect on marketability, or the Mortgagee's interest in the residential property and of which the lawyer is unaware following compliance with the Protocol. (Such survey/encroachment issues are hereinafter referred to in this Protocol and the Protocol Checklist as a "Survey Defect"). The lawyer must not assume responsibility for any loss resulting from a known Survey Defect. c. insure the lawyer for loss incurred by a purchaser arising from intervening interests registered during the Insured Period in relation to the registration of the transfer of land; d. eliminate the lawyer's insurance deductible for any loss suffered after compliance with the Western Law Societies Conveyancing Protocol.

14 - 2 - The insurance coverage will be subject to the condition that the lawyer has documented compliance with the Protocol Checklist for Saskatchewan, prior to the issuance of the Solicitor's Opinion under the Western Law Societies Conveyancing Protocol. This Protocol sets out minimum standards for issuance of the Solicitor's Opinion under the Western Law Societies Conveyancing Protocol. The nature of any particular transaction and specific instructions received from a client will govern the lawyer's duty in every case. Lawyers are advised to obtain an acknowledgement of instructions from purchasers in every case. III. Protocol - Minimum Standards Prior to Issuance of the Solicitor's Opinion under the Western Law Societies Conveyancing Protocol The Protocol is for use only with Existing Residential Property transactions and is available only to the solicitor acting for the purchaser of or owner refinancing Existing Residential Property. The Saskatchewan Practice Checklist should be referred to in all residential conveyances. The minimum searches which will be required to be undertaken prior to the issuance of the Solicitor's Opinion under the Western Law Societies Conveyancing Protocol, are taken from the heading C. "Searches", commencing at Page RE-4-6 ofthe Residential Conveyance and Leases section of the Saskatchewan Practice Checklists. These minimum searches and compliance with the following are required: a. Complete the applicable searches and requirements referred to in Sections C1 to 9 inclusive. In addition you must: 1. make arrangements to pay municipal taxes to comply with Mortgagee instructions; ii. iii. order a writ registry search on all purchasers (exactly as they will be designated on title) and updated title search. The writ registry searches on the purchasers and the updated title search must be obtained on the day prior to closing date; identify that each registered interest either does not adversely affect the Mortgagee's security and is accepted, or arrange to obtain discharges or withdrawals of unacceptable registered interests; b. If your client is purchasing a condominium, you must also obtain the searches specified in Section C1O. Ifthe property is an existing condominium the specific minimum standard with respect to an estoppel certificate is to obtain a certificate in Form "Z" pursuant to The Condominium Property Act, The minimum standard for insurance is to obtain confirmation that a policy is in place with loss payable to the condominium corporation, or the condominium owner, if applicable. Note: Additional review of budgets, bylaws, parking, reserve funds and other aspects of the transaction with the purchaser are recommended.

15 - 3 - c. Section C13 must be satisfied. The minimum standard will require compliance with The Homesteads Act, 1989, for purchasers' documents. d. The minimum standards will require the lawyer to consider Sections C19-32 inclusive ofthe Saskatchewan Practice Checklists. Any available surveyor's certificate/real property report and building information abstract/siting certificate/zoning memorandums/compliance certificate should be obtained. Information should be reviewed with the purchaser, to determine if there is a possible Survey Defect. If so, the Mortgagee should be contacted to obtain instructions to obtain a current Real Property Report and/or building information abstract/siting certificate/zoning memorandums/compliance certificate, or confirmation that the Mortgagee accepts the potential Survey Defect. Also, lawyers are strongly encouraged to obtain a purchaser acknowledgement of instructions with respect to surveys/real property reports, obtaining condominium plans, building information abstracts/siting certificates/zoning memorandums/ compliance certificates. Note: The minimum standard for issuing a Solicitor's Opinion under the Western Law Societies Conveyancing Protocol will apply to purchasers' lawyers only, but vendors' lawyers are reminded of the importance of Sections C14-18 and Section J in relation to trust conditions and undertakings. IV. Notification of Vendor's Solicitor The purchaser's solicitor must notify the vendor's solicitor that the Existing Residential Property transaction is to be closed using the Western Law Societies Conveyancing Protocol. This will allow the vendor to release funds on the closing date. V. Purchaser's Documents The purchaser's documents should be prepared in accordance with Section E of the Saskatchewan Practice Checklists. Minimum standards will include compliance with Sections E3, E4, E6, E7, E8, E9, ElO. In order to issue the Solicitor'S Opinion under the Western Law Societies Conveyancing Protocol the mortgage documents must be prepared in accordance with the Mortgagee's instructions. The Solicitor's Opinion under the Western Law Societies Conveyancing Protocol will remove the requirement for the provision of some searches and reports, but documents must still be completed in accordance with the Mortgagee's instructions. The Protocol Checklist identifies the recommended procedure for submission of documents to Information Services Corporation, and the recommended procedure for confirmation ofregistration.

16 -4- VI. Vendor's Documents The vendor's documents, including the transfer authorization, must be reasonably reviewed to determine if there are errors that must be corrected prior to submission to ISC. Such reasonable review will include: a. Checking the accuracy of the title numbers in the transfer; b. Checking the accuracy of the transferee designation; c. Checking for proper execution; d. Checking if there has been compliance with The Homesteads Act, VII. Insurance Verify that insurance is in effect in accordance with the Mortgagee's instructions by way of binder letter from an insurance agent. The Mortgagee must be listed as the applicable loss payee to satisfy the Mortgagee's instructions, and the policy must contain a standard mortgage clause approved by the Insurance Bureau of Canada. Carefully check to see ifco-insurance is prohibited. VIII. Certification Prior to issuing the Solicitor's Opinion under the Western Law Societies Conveyancing Protocol, the responsible lawyer must complete and sign the certification portion of the prescribed Protocol Checklist. IX. Trust Conditions Prior to issuing the Solicitor's Opinion under the Western Law Societies Conveyancing Protocol, the lawyer must carefully review the trust conditions and undertakings provided with the transfer authorization. The trust conditions must be such that they can be complied with, and the undertakings must be appropriate to conclude the transaction contracted for. The individual trust conditions and undertakings will depend on the particular transaction, but the trust conditions approved for use with the Western Law Societies Conveyancing Protocol, will satisfy the minimum format for trust conditions. X. Issue of Approved Solicitor's Opinion Following execution of certification, forward the approved solicitor's opinion to the mortgagee.

17 DELIVERED Attention: Dear Sirs: Re: Law Society Uniform Trust Letter Format -Western Law Societies Conveyancing Protocol Vendor: Purchaser: Property: Possession Date: Our File: We are the solicitors for the Vendor in the above-noted transaction and we enclose the following: Required Documents: Optional Documents: Transfer Authorization oftitle No. Statement of Adjustments; Affidavit in Compliance with The Homesteads Act, 1989; Vendor's GST Exemption Certificate; Photocopy oftitle Search Results; Photocopy (Original) Surveyor's CertificatelReal Property Report; Copy of Tax Receipt; Declaration as to Possession. You have advised that you are closing this transaction using the Solicitor's Opinion under the Western Law Societies Conveyancing Protocol (hereinafter called "the Protocol"). Accordingly, the enclosed documents are sent to you on the trust conditions and undertakings set out below in accordance with the Law Society Uniform Trust Letter for closing using the said Protocol. TRUST CONDITIONS - We impose the following trust conditions: 1. On or before the possession or adjustment date (whichever first occurs, the earlier date is hereinafter referred to as the "possession date"): (a) You confirm that the within trust conditions and undertakings are acceptable to you. Such confirmation will allow us to authorize your client's possession of the property on the possession date;

18 - 2- (b) If either the trust conditions or the undertakings are not acceptable to you, please contact the writer immediately; (c) If you are unable or unwilling to accept all of the within trust conditions and undertakings, immediately return the enclosed documents, unused, unless an alternative written agreement is reached. 2. On or before the possession date, you will forward to this office: (a) (b) The balance due to close as set out in the Statement of Adjustments; Your certification that you have complied with the Protocol. 3. If the balance due to close arrives in our office, after the possession date, you will pay interest thereon at the rate of % per annum from the possession date to the date that funds are received in our office. 4. As soon as it is reasonably possible and, in any event, not later than 2 business days after the possession date, you will complete and submit to the Land Titles Registry a packet for conditional registration, utilizing the enclosed Transfer Authorization and any Interest Registrations required by your client's mortgagee, if any. 5. You will notify the appropriate municipal authority of the change of ownership within a reasonable period of time following registration of title in your client's name. 6. Ifthe packet submitted to the Land Titles Registry is rejected, you will take all reasonable steps to: (a) (b) (c) Notify this office; Correct the document(s) or cause it to be corrected if you are able to do so and resubmit the same for registration; Return any document supplied by the Vendor to this office if necessary, and we undertake to correct such deficiency if we are able to do so, and redeliver the same to your office for you to resubmit for registration. 7. You will immediately advise if your client does not receive vacant possession, otherwise we will assume vacant possession has been granted.

19 You will notify our office upon title registering in your client's name, and you will forward to our office a photocopy of the new title(s) to the property, if requested. UNDERTAKINGS - We undertake as follows: 1. To return the balance due to close to you if either of the following circumstances occur: (a) On or before the possession date, we become aware of any circumstance relating to the Vendor which would adversely affect the issuance of title in your client's name, subject only to the following interests: Interest #; Interest #; Any interest registered by or against your client. (b) If you advise vacant possession is not available to your client on possession date, prior to our disbursement of the funds. 2. To: (a) Payout and cause to be discharged from title, the following Interests: i. 11. Interest #; Interest #; (b) (e) Pay any taxes necessary to conform with the Statement of Adjustments; Make all payments on any mortgage being assumed by your client in order to conform with the Statement of Adjustments (if applicable). Yours truly, Thank you.

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21 WESTERN LAW SOCIETIES CONVEYANCING PROTOCOL CHECKLIST FOR SASKATCHEWAN Not Applicable Done Reviewed A. SEARCHES / Do tax search and obtain either tax statement or tax certificate showing present status of taxes. Confirm that address on ) tax information matches address as shown on real estate instructions. 1.1 Levied for current year $ 1.2 Past year's taxes if unlevied $ 1.3 Tax arrears are: $ 1.4 Tax credits are: $ 2. If property on T.I.P.P.S. (Tax Instalment Payment Plan) program: 2.1 Current monthly payment $ 2.2 Credit in tax account $ 3. Arrange for tax certificate, and arrange for payment of any outstanding taxes in order to comply with Mortgagee's and/or Purchaser's instructions. 4. Do land registrysearch of the propertyand confirm that legal description from yoursearch matcheslegal description shown on tax information and real estate instructions. 5. Review searches. Are there any interests to be discharged such as tax lien, mortgages or interests which according to your search will attach against name of your client? Are there any interests to be assumed and transferred? Identifythat each registered interest either does not adversely affect the Mortgagee's security and is accepted, or arrange to obtain discharges of unacceptable registered interests. 6. Obtain copies of all interests that will remain on title, such as assumed mortgage, easements and miscellaneous interests for your records and records of your client. 7. Is Personal Property Security Actsearch required? Do this search if property being sold is a mobile home. Obtain make, model and serial number of mobile from your client andlor your client's real estate agent. 8. If transaction involves condominium: 8.1 Obtain and review estoppel certificate if one is enclosed with real estate instructions. If real estate instructions do not include estoppel certificate, obtain one in Form "Z' pursuant to The Condominium Property Act, Determine if there are any condominium arrears or credits. 8.3 Obtain copy of condominium insurance certificate, if available. 8.4 Check allocation of parking. }Determine if property is subject to The Homesteads Act, 1989 and if there is non-owning spouse. NOTE: "Non-owing spouse" has expanded definition in 2001, and regulations have changed compliance. 10. Obtain copy of survey certificatelreal property report for property, if available. Review contract of sale to determine if provision of report/certificate is part of contract. 11. Are there possible or known survey defects, or is report/certificate not available? If so, review with Mortgagee to see if known survey defects are acceptable. 12. Determine if zoning certificate is required. 13. Review advisabilityof new real property report and zoning certificate with client and obtain instructions as to whether ornot to obtain these searches. 14. Do Writ Registry searches on names of all purchasers on the working date prior to closing. 15. Update Land Registry search of the property on the working date prior to closing and confirm acceptable state of title. The time of this search can be used for conditional registration. B. PREPARE PURCHASER"S DOCUMENTS 1. Confirm with multiple purchasers how they wish to take title to their property: 1.1 As joint tenants. 1.2 As tenants-in-common. 2. Advise solicitor for vendor how purchaser wishes to take title, and that transaction is closing pursuant to the Protocol. 3. Prepare mortgage documents if purchaser is obtaining mortgage financing to purchase property: I 3.1 There are lwotypes of mortgage documents, the C.M.H.C. Form and all the rest. The C.M.H.C. form is a standard mortgage form which must be used byany lender where mortgage is being insured byc.m.h.c. unless you add specific terms to the lender's conventional loan documents. If mortgage is not C.M.H.C. insured, then lender will use their specific form. 3.2 Double check the Form sent (or downloaded) and your instructions. 3.3 Confirm other requirements of mortgagee in relation to survey, zoning and title insurance. 3.4 Confirm identification of mortgagor, if required. 4. Insert "due on sales" clause into mortgage if required by mortgage instructions.

22 5. Insert prepayment clauses and additional specified clauses into mortgage if required by mortgage instructions. 6. Prepare order for payment. This is purchaser's written instructions to their lender to have lender send net mortgage funds to lawyer's office. The direction will also instruct solicitor to utilize mortgage for such purposes as paying balance of purchase funds to solicitor for seller. 7. Review mortgage approval instructions and prepared mortgage to verify correct. 8. Prepare Statement of Adjustments. ) i 9. Attend on purchasers to review and sign documents, or arrange for propercompletion. Obtain balance of cash to close. Verify identify, if appropriate. 10. II mortaaae is beina assumed confirm reauirements of mortaaoee have been satisfied. C. INSURANCE Verify that insurance is in effect in accordance with the Mortgagee's instructions byway of binder letter from an insurance agent. The Mortgagee must be listed as a first loss payable, and the policy must contain a standard mortgage clause approved bythe Insurance Bureau of Canada. Check to see if co-insurance is prohibited. D. TRUST CONDITIONS The solicitor must carefully review the trust conditions and undertakings provided with the transfer authorization. The trust conditions must be such that they can be complied with, and the undertakings must be appropriate to conclude the transaction contracted for. The individual trust conditions and undertakings will depend on the particulartransaction, but the trust conditions approved for use with the Western Law Societies Conveyancing Protocol, will satisfy the minimum format for trust conditions. E. SUBMISSION AND OUTPUT REQUEST 1. Submit documents to comply with trust conditions;, 2. Check Packet and Applications 2.1 Are total page numbers and total number of applications correct? 2.2 Submit Homestead compliance documents as an attachment to the transfer authorization. 2.3 Use conditional registration time from last search only on first application dealing with a title in a Packet. 2.4 For transactions involving a Transfer make certain Affidavit of Value is part of Packet. 2.5 Submit mortgage documents as an attachment to the interest registration application. 2.6 If desired, enclose a title print request after the application, but prior to the Begin Attachment Sheet. Select the form of output you desire. Generally you will request a title print only after the last application in relation to a parcel. 2.7 Report to the mortgagee once you have been notified of registration, generally by receipt of confirmation of registration from the Land Registry. In your report, provide the title print and the original signed mortgage. In addition, provide the mortgagee with the copyof the downloaded and printed copy of the mortgage attached to the ~ interest registration or certify that you have compared the downloaded copy of the mortgage to the original, and ) that they are the same. 2.8 Output is available on "security paper". This output has additional cost, and time delay, but may be desired in some cases. Access to the Assurance Fund does not depend upon the practitioner ordering a title print on security paper. Reliance may be placed on the Land Titles Registry, and a search can later be made to determine the status of the Registry at any time. If there is no reasonable basis to doubt the output received from ISC, it can be relied on. F. CERTIFICATION The undersigned certifies: 1. The Protocol and Sections A-D, inclusive, of the Protocol Checklist have been complied with; 2. Documents will be submitted in compliance with trust conditions, and Section E of the Protocol Checklist will be complied with; 3. There are no known conditions or deficiencies in relation to survey, zoning or title status which may adversely impact on the transaction, or the parties to the transaction. Based on the above certification, a solicitor's opinion pursuant to the Westem Law Societies Conveyancing Protocol has been issued for this transaction. Dated the day of, 20_. Per: _

23 Western Law Societies' Conveyancing Protocol Solicitor's Opinion To: (Name of Lender) Date: Re: Mortgage Loan Number: Mortgage Amount: $ Purchase Price: $ The Parties: Mortgagor(s): Name and Address of Mortgagors Guarantor(s): Name and Address of Guarantors The Property: Civic Address: Legal Address: I have complied with the Western Law Societies' Conveyancing Protocol (Saskatchewan) in the conduct of this transaction and have acted in accordance with your instructions with respect to the real property mortgage described above. Subject to any qualifications noted below, which have been accepted by you, it is my opinion that the mortgage can now be funded and the funds disbursed. Qualifications: Issuing Lawyer: Barrister and Solicitor Member of the Law Society of Saskatchewan E:\WPDATA\RMS\Law Society\Solicitors Opinion.Letter.mortgagee.wpd January 30, 2001

24 PROPOSED Western Law Societies' Conveyancing Protocol Solicitor's Opinion To: (Name of Lender) Date: Re: Mortgage Loan Number: Mortgage Amount: $ Purchase Price: $ The Parties: Mortgagor(s): Name and Address ofmortgagors Guarantor(s): Name and Address of Guarantors The Property: Civic Address: Legal Address: I have complied with the Western Law Societies' Conveyancing Protocol (Saskatchewan) in the conduct of this transaction and have acted in accordance with your instructions with respect to the real property mortgage described above. Subject to any qualifications noted below, which have been accepted by you, it is my opinion that the mortgage can now be funded and the funds disbursed. The Protocol allows for a claim against me for: 1. An intervening Registration which takes priority over the mortgage; 2. A survey defect which was unknown at the date of advance, but which would have been disclosed by an up to date Real Property Report; 3. Problems with the enforceability ofthe Mortgage. Qualifications: Issuing Lawyer: Barrister and Solicitor Member of the Law Society of Saskatchewan S:\workdoc\SEMINARS\Legal support staff seminars\200s support staffessentials\solicitors opinion letter.mortgagee april 200S.doc