Do I Need a Lawyer to Buy a House in Newfoundland and Labrador?

You have found a house, or you are about to make an offer, and someone has told you that you need a lawyer. Another person says you can do it yourself. It is fair to ask what the law in Newfoundland and Labrador actually says.

The short version is that no rule says in so many words that a buyer must hire a lawyer. But the documents that make you the owner must be prepared and registered in a particular way, and that work is legally the practice of law. This article explains why the registration paperwork points toward using a lawyer, and what the Registry of Deeds itself advises.

This article covers the law of Newfoundland and Labrador.

Is a lawyer legally required?

No official Newfoundland and Labrador source states that a buyer must hire a lawyer. The rule works more indirectly. Practising law includes drawing, preparing, revising or settling a document relating to real or personal property that must be registered or filed in a public office. Deeds and mortgages fall into that category.

A person who is not a member in good standing of the Law Society may not practise law, subject to listed exceptions. Offences carry fines of up to $2,000 for a first offence, $5,000 for a second and $10,000 for a third or later, and one act is enough for a prosecution.

There are exceptions. Real estate agents may prepare and deliver formal agreements of sale that they negotiated, and a notary public's lawful practice is also excluded. A person may act on their own behalf in a proceeding to which they are a party, but that exception is framed around proceedings, so it does not clearly allow you to prepare your own registrable deed or mortgage.

Does my lender require one?

Lenders set their own conditions, so what yours requires at closing depends on your lender and your mortgage. Preparing mortgage documents that must be registered is work that falls within the practice of law. Read your mortgage commitment and ask your lender directly what it needs at closing.

Why the Registry of Deeds advises using a lawyer

The Registry of Deeds says it is advisable to engage a lawyer to prepare the documents to ensure compliance and facilitate registration. The requirements are strict:

• Paper documents must be originally signed and witnessed by a person authorized to administer an oath, or an affidavit of execution is needed.
• A registration application form must be included, and documents without it are returned unprocessed.
• The document needs an accurate written property description.
• The proper fee must be paid first, because the Registrar may not register an instrument until it is.

The registrar can also refuse an instrument for reasons such as a missing legible property description, illegibility or being contrary to law. A refusal is appealed to the Supreme Court within 30 days.

What happens if you skip it or skip registration

Registration is what protects you. An instrument that has not been proved and registered, or had a notice registered, is judged fraudulent and void against a later purchaser or mortgagee for value who registers first. Registration also constitutes notice to anyone later claiming an interest in the land.

An instrument is considered registered when delivered if the registrar finds it compliant, which fixes the time of registration and priority. A document that is returned or refused can therefore cost you your place in line.

Title searching also matters. The Registry of Deeds is open to the public, but registry staff do not search for clients, and title searching in the province is complicated, so a professional search firm or lawyer is recommended. The registry gives notice and priority; it is not a title guarantee.

What to do next

• Speak to a lawyer before your offer's conditions run out, not after.
• Ask your lender in writing what it requires at closing.
• Gather your agreement of purchase and sale, mortgage commitment and identification.
• Ask who will search title, prepare the deed and notice of mortgage, and register them.
• Ask what registration charges to budget for, since the fee must be paid before registration.

Time to review an agreement is set by the offer's own conditions, so build in enough time to get advice. A lawyer can confirm the details for your purchase.

Frequently asked questions