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Professional Standards Manual

Trading Services

2. Acting For Sellers

(b) Legal Advice Clause

Legal Advice Clause

Subject to the (select either Buyer or Seller) obtaining legal advice satisfactory to the Buyer or Seller concerning (select easement, builders’ lien, financing or define applicable issue)__________ on or before (date) .

This condition is for the sole benefit of the Buyer.

Ω If not using the standard form Contract of Purchase and Sale, refer to ‘‘Contracts under Seal’’.

(i) Obtaining Title Searches

Licensees acting on behalf of buyers often rely on title search documents provided by the seller or, alternatively, request that the seller make such documents available for the buyer’s review.

Buyers should be advised that it is possible for an unscrupulous individual to manipulate the title information obtained from the Land Title and Survey Authority (LTSA). Licensees should therefore be very cautious when relying on title information provided by a party that the licensee does not know or trust and should advise buyers to rely only on documents from a reliable source such as the buyer’s agent or lawyer.

The licensee should not provide incomplete copies of the encumbrances to the buyer because of the legal liability of doing so. Any error or omission or attempted interpretation of the documentation which misled the buyer could lead to serious consequences for the licensee. It is, therefore, best to have the buyer’s lawyer or the buyer himself or herself obtain and analyze these documents.

Approval of Documentation Clause

Subject to the Buyer’s(select either lawyer or accountant) approving the form of the documentation on or before (date) .

Ω If not using the standard form Contract of Purchase and Sale, refer to ‘‘Contracts under Seal’’.

Licensees should be aware that there may be restrictions on the property that may affect its use or value that are not registered against the title. For example, restrictions relating to Riparian Areas Regulation under the Fish Protection Actor archaeological sites under the Heritage Conservation Act and others that are not currently registered on title may have substantial impact on use or value.

The title search clause, as set out above, should be used to enable the buyer to search for any charges or other features that may affect the property’s use or value.