2.  Lawyer’s Opinion ◦ The lawyer must inform the client about risks associated with the property that require a decision as to whether the buyer wishes to accept such risk before closing the transaction  Ontario Title Insurance ◦ Like Lawyer’s Opinion, Title Insurance provides additional protection to the buyer ◦ It is a new concept in Canada ◦ Title insurance is a value added service because they protect buyer/seller and lender in transaction and help reduce delays in closing

3. ◦ You should refer to your lawyer to discuss a title insurance because you are not a lawyer capable of providing legal advice ◦ Title insurance covers the entire value of the property, including the owner’s equity ◦ It protects the lender or insured owner from any title defects ◦ There are two main policy coverage: 1.Duty to defend (legal expenses that are associated with a claim) – the insurer defends your legal interest 2.Duty to indemnify for actual cost incurred – the insurer covers all costs if something comes up

4. ◦ Coverage includes:  Liens and encumbrances  Defects  Minor encroachments  Fraud/forgery that take place before/after closing  Existing surveys  Insurance makes financial sense since most insurers accept existing surveys, saving the consumer the cost for a new survey  This can mean significant savings plus less delay in closing  Practitioners should not lead buyers to believe that survey costs will be avoided, but that it may be avoided

5.  Title Conveyance ◦ After the Agreement of Purchase and Sale has been accepted, conveyance of the title will take place on the closing date/date of completion ◦ Conveyance is done through Transfer/Deed of Land ◦ It is registered in either the Land Titles or the Land Registry  The Land Registry is being phased out so we register the Title Conveyance on Land Titles

6.  E-Registration ◦ Old Land Registry System undergoing electronic conversion that is being driven by two systems:  POLARIS and Teraview ◦ POLARIS = Province of Ontario Land Registration and Information System  It is an automated land registration system that is based on property mappings (plans and surveys) and title index (description of property ownership)  A province-wide move to convert Old Registry System to Land Titles is almost complete  It involved reorganization of data and documents under individual parcels with unique identifiers called Property Identification Numbers (PIN)  Teranet Inc. makes enhancements to POLARIS besides providing an electronic user gateway Teraview

7.  Brokerages and Concluding the Real Estate Transaction ◦ Trade Record Sheet is required for all agreements involving conveyance of any interest in Real Estate

8.  Benefits of putting properties up for auction: ◦ Removal of artificial ceilings on asking prices ◦ Competitive bidding ◦ Auctions may result in an immediate binding contract  Auctioneers do not need license since they normally operating under an auction authority that is an agreement between seller and auctioneer (like a listing authority)  Auctioneers must be authorized by seller in order to auction the property

9.  Auction authority states the length of the agreement as well as the fee conditions  Auctioneers prepare auctioning strategies relating to: ◦ Planning showings ◦ Advertising/promoting the auction ◦ Information to include in bidder’s info package ◦ Where the auction will actually be held

10.  Auctioneers normally develop pre-viewing marketing campaigns, which include: ◦ Showings scheduled 2-3 weeks before auction date ◦ Interest buyers given bidder registration packages ◦ Inspections also typically conducted  Home inspector conducts inspection  Lawyer will also inspect – non-title/title search  Bank will appraise home for mortgage purposes

11.  Sellers typically set a reserve price/reserve bid that is unknown to the bidders but this is not required ◦ Whether or not to set a reserve price depends on market conditions, strategy, specific seller needs and auction strategy ◦ Reserve price example: “I do not want to sell this property for less than $300,000”  The property will not be sold unless the highest bid received is above $300,000

12.  Types of Auctions: ◦ Absolute Auction – no minimum reserve for the seller  Attracts most interest because sale is guaranteed since there are no limitations or restrictions on the final selling price ◦ Minimum Bid Auction – provides safety net to the seller  Minimum acceptable sale price may be set  This minimum is normally set below market price so that interest may be created among prospective bidders ◦ Auction by Confirmation – permits seller to confirm or reject any final bid price