CBA.ORG
We have been championing Canadian lawyers and Canadian law since 1896. We are the face, the voice, and the future of this country’s leading legal minds.
Connecting students and young lawyers to CBA
Join over 25,000 of your esteemed colleagues who participate in CBA Sections, Forums and Committees.
Our curriculum will help you interpret financial statements and draft effective business documents.
The CBA supports professional excellence among the legal community through our many engaging and expert publications.
CBA. More than a membership
Take advantage of our complimentary resources to help you find what you need, quickly and easily.
The Mortgage Instructions Toolkit is a practical resource for residential real estate lawyers in Canada. Over the last few years, lender instructions have increased in scope and lawyers may find themselves being pressured to give opinions and assume responsibility for matters outside their areas of expertise. The result is a significant increase in potential liability.
Although lenders’ title insurance policies are obtained in most residential mortgage loan closings, title insurance does not cover all elements of a residential transaction or resolve all difficulties with a lender’s instructions. The Canadian Bar Association’s Real Property Law Section is planning to work with the Canadian Bankers Association to seek improvements to problematic lender instructions in residential real estate transactions. Please send any issues you are facing with lender instructions to cbarealproperty@cba.org.
Prepared by the CBA Real Property Section, the practice tools in this toolkit can help you respond to some common lender instruction requests.
Introduction
Access to the Property
Borrower identification requirements
Building compliance issues
Changing lender instructions
Conflicts of Interest - Lender
Conflicts of Interest-Vendor
Duty to inform lender
Easements and rights of way
Encroachments and other encumbrances
Independent Legal Advice
Insurance
Lender Intermediaries - NEW!
Opinions on title or title insurance
Practice of Law: Scope of work obligations - NEW!
Private water supply
Property Taxes - NEW!
Reliance on mortgage payout statements
Reporting - NEW!
Request for funds - NEW!
Responsibility to “ensure” or “certify”
Retention of mortgage documents
Searches
Septic tanks
Signing of borrowers - NEW!
Surveys
Title insurance coverage for legal services
Undertakings - NEW!
Western Conveyancing Protocol
Zoning - NEW!
Disclaimer & Feedback