Two New Letters in RealtiWeb Ontario

We've added Release of Purchaser(s) Requisite Deliveries and Extension of Closing Date letters

Maurizio Romanin, President & CEO of LawyerDoneDeal, is also a practising real estate lawyer. Our clients benefit from Maurizio's experience in closing deals (he uses RealtiWeb of course).

Here's a note from Maurizio explaining the scenarios which led him to create these two new letters.

Release of Purchaser(s) Requisite Deliveries Letter

A couple of months ago I acted on the sale of some property in the GTA. I had the usual DRA signed, and received the sale proceeds around 2:00 p.m. I released the transfer for registration and then heard nothing from the buyer's lawyer. I tried to call their office at 4:30 and got voice mail and left a message. I then sent a fax asking about the status of registration and received no reply. 

As we got closer to 5:00, I was growing concerned about releasing the sale proceeds to my client and the lack of communication from the buyer's lawyer. I had never needed to unilaterally release "Requisite Deliveries" before. In order to evidence my ability to do so, I drafted a "release" letter which specifically set out that:

1. I had not received notification regarding the existence of any defects in the Seller's Vendor’s Requisite Deliveries, as contemplated in paragraph 2 of the Document Registration Agreement (“DRA”) or notice in accordance with paragraph 7 of the DRA, that the Buyer did not wish to proceed with the registration of the Electronic Documents;

2. I had released for registration the Electronic Documents that require the Vendor’s solicitor’s electronic signature;

3. I had not received notification from the "Registering Solicitor" of the registration of the Electronic Documents, as required under paragraph 5 of the DRA; and

4. The "Release Deadline" set out in paragraph 4 of the DRA has passed or expired.

Extension of Closing Date Letter

In handling a real estate purchase it became necessary to extend the closing date of the deal. The lawyer acting for the seller said he would send  a letter confirming the extension. When I read the letter, it simply stated "I confirm our agreement to extend the closing date with respect to the sale of the Property to October 15, 2016."

I immediately realized that many lawyers who have not had the benefit of a full articling experience and the "old style" Bar Admission Course have been deprived of a meaningful educational experience that allowed them to obtain this knowledge as well as the legal precedents to implement this knowledge. 

In simple terms he was not aware of the standard items usually dealt with in any closing date extension namely that you should specify:

1. The date for adjustments;

2. The fact that time will continue to be of the essence; and

3. That all other terms and provisions of the agreement remain the same.

We've added both of these letters to RealtiWeb under the Other Documents heading.