- Electronic registration of instruments is generally limited to subscribers, who are Law Society of New Brunswick members authorized to practise law and who have an agreement with Service New Brunswick.
- Paper submission is allowed only in limited cases.
- Transfer tax must be paid before the deed is registered, and it is payable by every person who tenders a deed for registration in the province.
First-time buyers often hear that a lawyer is required to buy a house. The honest answer has layers: what the law says, what your lender wants, and what registration practically demands.
This article walks through each layer so you can see where a lawyer fits in and what could happen if you try to go without one.
This article covers the law of New Brunswick.
What the law requires
The registration rules do not say, in general terms, that every buyer must hire a lawyer. What they do is limit who can file electronically. Electronic instruments can be submitted only by subscribers, meaning Law Society of New Brunswick members authorized to practise law who have an agreement with Service New Brunswick, apart from stated exceptions.
Paper submission is allowed in limited cases, such as when a registered owner submits the instrument personally. A buyer who is not yet the registered owner should not assume that exception helps them.
What your lender may require
Whether your lender sets its own conditions for a mortgage, including whether it wants you to use a lawyer, depends on your lender and your situation, so it is worth confirming with a lawyer. Check your mortgage paperwork and ask your lender directly what it expects before you close.
What registration involves in practice
- Instruments must be properly executed and accompanied by all pertinent documents and approvals, and requirements differ between Land Titles and the Registry of Deeds.
- In Land Titles, land is identified by its Parcel Identifier (PID), and the registrar may reject an instrument that does not describe the land by its approved PID.
- A new mortgage is registered in prescribed form.
- Real Property Transfer Tax must be paid before the deed is registered, and it is payable by the person who tenders the deed.
- The tax is 1% of the greater of the consideration or the assessed value.
If the seller has a mortgage, it is removed by registering a discharge of mortgage in prescribed form. Electronic registration of deeds and mortgages is done by lawyers who are subscribers, so how this applies to you depends on your situation, and it is worth confirming with a lawyer.
Deposits and what can go wrong without help
A real estate agent who receives a deposit must hold it as trustee for all parties according to their rights under the offer or contract. Money cannot be drawn from the trust account except in accordance with the terms on which it was received.
If the parties dispute a deposit, the agent may, and if necessary to resolve the dispute shall, pay it into court on an interpleader. Who is entitled to the deposit depends mainly on your agreement of purchase and sale, so have it reviewed before you sign.
| Question | Where the answer comes from |
|---|---|
| Who can file electronically? | Subscribers under the Land Titles Act |
| Is a lawyer required by your lender? | Your mortgage terms; ask your lender |
| Who holds your deposit? | The agent, as trustee for all parties |
What to do next
- Ask your lender in writing whether it requires a lawyer.
- Have a lawyer review your offer before it becomes binding.
- Ask what the lawyer will do about title searches, registration and the transfer tax.
- Confirm who will register your deed and mortgage, since electronic filing is generally limited to subscribers.
Going without a lawyer may leave you unable to register electronically, and you would carry the risk of errors yourself. A lawyer can confirm what applies to your purchase.
Frequently asked questions
Does New Brunswick law say I must hire a lawyer to buy a house?
The registration rules do not state that in general terms. They do limit electronic filing to subscribers, who are Law Society members, and paper filing to limited cases.
Can my lender require a lawyer?
Lenders can set conditions in your mortgage commitment. Check your commitment and ask your lender directly.
Who pays the transfer tax?
It is payable by every person who tenders a deed for registration in the province, and it must be paid before the deed is registered. The rate is 1% of the greater of the consideration or the assessed value.
What happens to my deposit if the deal falls through?
The agent holds the deposit as trustee for all parties according to their rights under the offer or contract, unless the offer or contract says the agent receives it for one party and every other party acknowledges that in writing. Money can be drawn from the trust account only in accordance with the terms on which it was received, so the brokerage cannot simply release a disputed deposit to one side. A dispute may end in court on an interpleader.
Sources
- Real Property Transfer Tax Act, s. 2(1.03) — laws.gnb.ca
- Real Estate Agents Act, S.N.B. 2011, c. 215, s. 21(1) — laws.gnb.ca
- Land Titles Act, s. 26(1) — laws.gnb.ca
- Service New Brunswick - Land Registration FAQ — gnb.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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A home purchase with us is from $1,555.35, tax included. Third-party fees are extra.