What a Real Estate Lawyer Does When Buying in Newfoundland and Labrador

Your offer has been accepted and now a stack of paperwork is on its way. Most buyers in Newfoundland and Labrador are not sure what a lawyer actually does between the accepted offer and the day you get the keys.

This article walks through the usual steps in plain terms: checking the title, reviewing the survey and mortgage papers, registering your documents and settling the final adjustments. Details vary with each purchase, so treat this as a map and not as advice on your own file.

This article covers the law of Newfoundland and Labrador.

Why a lawyer is usually part of the purchase

Drawing or preparing a document about real property that must be registered in a public office counts as practice of law in Newfoundland and Labrador, and that covers deeds and mortgages for registration. A person who is not a member in good standing of the Law Society may not practise law, subject to listed exceptions.

The Registry of Deeds itself says it is advisable to engage a lawyer to prepare the documents to ensure compliance and facilitate registration. The exception that lets people act for themselves is framed around proceedings in which they are a party, so it does not clearly cover preparing your own deed or mortgage.

Step one: searching the title

A title search looks at what the public record shows about the property. Registered documents may show property descriptions, liens against the property and the consideration paid. Registry staff do not do searches for clients, and title searching in the province is complicated, so a lawyer or professional search firm is recommended.

The registry keeps an index of all instruments and notices registered. It is a registry of deeds and notices that gives notice and priority. It is not a guarantee of title. A mortgage may appear only as a notice, so a search may not show its full terms. Your lawyer follows up on anything unclear or any claim against the property.

Step two: survey, mortgage and closing papers

Whether a survey is needed often depends on your lender and on the property. Your lawyer reviews any survey or plan against the property description, because an accurate written description is needed on documents that go to the registry.

If you are borrowing, your lawyer prepares the mortgage documents, explains them and makes sure they are signed correctly. Paper documents must be originally signed and witnessed by a person authorized to administer an oath, or else an affidavit of execution is needed. For a sale for valuable consideration, the seller is treated as promising that they have full power to convey and that the property is free of encumbrances, except those expressly accepted.

Adjustments are the final accounting between you and the seller. Your lawyer prepares the figures, and they go into the statement you review before closing.

Step three: registration and fees

Registration is what makes your purchase public. A document that is not proved and registered is treated as void against a later purchaser or mortgagee for value who registers first. Registration also gives notice to anyone later claiming an interest in the land.

The proper fee has to accompany the document, and the registrar may not register it unless the fee is first paid. A registration application form must be included, or paper documents are returned unprocessed. The registrar can also refuse to register a document for reasons such as a missing legible property description. Your lawyer's job is to avoid these problems.

• Newfoundland and Labrador has no land transfer tax, but a land registration charge applies when a conveyance or notice of mortgage is registered.
• If the registrar refuses a document, the refusal is appealed to the Supreme Court within 30 days.

What to do next

Before you meet your lawyer, collect what they will need so the work can start quickly.

• Your signed agreement of purchase and sale, with all conditions and dates.
• Your lender's commitment letter or mortgage approval.
• Any survey, plan or property description you were given.
• Government photo identification.
• Questions about the survey, adjustments and total closing costs.

Ask for the closing costs, including registration charges, in writing before closing day. The Registry of Deeds offers an online fee calculator for a conveyance or notice of mortgage.

Frequently asked questions