| Given the sheer volume of our real estate practice, we are often faced with situations where both the buyer and seller want to use Spagnuolo LLP. Are we allowed to do so?
Maybe! How’s that for a precise answer. In British Columbia, a law firm can represent both buyer and seller if the deal is deemed a “Simple Conveyance”. This is generally defined as where a buyer is purchasing without a mortgage or is using a routine mortgage from a major bank, credit union, or trust company. Also, the seller is using the buyer’s proceeds to clear off their old, existing mortgages or the buyer is legally taking over the seller’s existing mortgage instead of getting a new one. Separate lawyers will be required if the deal involves commercial real estate (businesses, industrial lands, or commercial properties), private or creative financing (a “vendor take-back” mortgage as an example), or is unfinished construction (the home is still being built, there are outstanding builder holdbacks, or there are unresolved construction defects on title). Note that the joint retainer must be disclosed, and both parties must agree to the law firm acting for both sides, and if a dispute arises, we must refer out both parties. We have often acted for both parties but have also on occasion declined to do so. Each file is different but if you have a file where both parties want to use Spagnuolo LLP give us a call to discuss. So, in summary, a vast majority of files are simple conveyances, and we can act for both sides. Having Spagnuolo LLP act for both buyer and seller streamlines the process and certainly makes it less likely for there to be issues with the transfer of funds. Any questions let me know, enjoy the sunshine and Go Canada Go! |