Creating a Response to an Undertaking Letter (BC)

Creating a Response to an Undertaking Letter (BC)

To access the Undertaking letter, navigate to the Manager screen; next, select the Response to Undertaking Letter tab in a Sale file. The letter has the following components, described in more detail below:
  1. Enclosures
  2. Missing Enclosures (if applicable)
  3. Buyer’s Lawyer Undertakings
  4. Seller’s Lawyer Undertakings 
  5. Additional Undertakings (if applicable)
  6. Other Matters

Enclosures
The following items are displayed as enclosures in each letter:
  1. Form A Transfer
  2. Seller's Statement of Adjustments
  3. GST/HST Certificate (if new home)
  4. Certificate as to HST Form 194-V-I (sellers are not a builder and not a new home)
  5. Statutory Declaration Re: Income Tax Act
  6. Parking Stall and/or Storage Locker Assignment (if condo)
If after reviewing the Undertaking letter and enclosures submitted by the purchaser's lawyer/notary you conclude that some of the enclosures you were expecting are missing, you can indicate in the Response to the Undertaking letter what the missing enclosures are. To add an item to the list of missing enclosures, type the name of the documents you expected to receive but did not, in the Missing Enclosures section.

Buyer's Lawyer Undertakings

The following items are included in each letter:
  1. Undertaking that stipulates that the transaction cannot complete unless sufficient funds are received by the buyer's lawyer.
  2. Undertaking that deals with disbursement of funds.
  3. Undertaking that provides for the return of the Transfer.

Add Additional Buyer's Lawyer Undertakings

  1. Click an issue in the Master Issues list and then click the Undertaking Response checkbox. In the Undertaking Response text box, type the text to be included in the document.
  2. Click the Buyer’s Lawyer Undertaking radio button to indicate the text is to be added as an undertaking response.
Note: You can also select precedent wording as an Undertaking Response by clicking the ellipsis button and selecting the appropriate clause from the list of available clauses.

Seller's Lawyer Undertakings

This section sets out the undertakings after which the buyer's lawyer/notary is forwarding money to the seller's lawyer/notary.
Note: You can use precedent wording from the menu of saved text items. To select the text, click the ellipsis button and click the clause you want to include.

Non-private mortgages

If the title search discloses registered non-private mortgages and you select the Seller Lawyer to Resolve option, the Response to Undertaking letter will automatically include each non-private mortgage as an item to be paid out and discharged at the beginning of the Seller’s lawyer’s undertakings.

After listing all non-private mortgages to be discharged, a supporting undertaking is included that deals with the provision of copies of the payout letter, the payout statement and the payout cheque within 5 days after completion. If there are no non-private mortgages to be discharged, this clause will not appear.

Other Registered Financial Interests

If the title search discloses registered financial encumbrances that are not mortgages you can indicate the Seller Lawyer to Resolve option. The system adds a provision in the Undertaking letter that deals with the payment and discharge of the financial non-mortgage encumbrance.
  1. In the Issues list, click the item you want to include in the Response to Undertaking letter as a Seller Lawyer to Resolve item. The Issues Workbench dialog appears. In the Issues Workbench dialog, click the Undertaking Response checkbox, and then in the Undertaking text box, type the specific clause.
  2. In the Include As section, click the Seller's Lawyer Undertaking radio button.
If you wish to change the financial/non-financial attribute of the registered interest, click the Financial Encumbrance Yes/No radio button.

Private Mortgages

If the search reveals a private mortgage imported into the Issues list, in the Issues Workbench dialog, click the Private Lender checkbox. The Response to Undertaking letter will automatically add a Seller’s lawyer undertaking requiring the registration of the discharge prior to or on closing.
Note: A private lender mortgage will not include a Seller's lawyer undertaking to pay out and discharge the mortgage after closing.

Other Registered Non-Financial Issues and Non-Registered Issues

If you wish to include Seller's lawyer undertakings for Registered Non-Financial Interests or Non-Registered Interests:
  1. In the Master Issues list, click the issue. The Issues Workbench dialog appears. In the Issues Workbench dialog, click the Undertaking Response checkbox, and then in the Undertaking text box, type the clause.
  2. In the Include As section, click the Seller's Lawyer Undertaking radio button.

Other Registered Non-Financial Issues and Non-Registered Issues

If you wish to include Seller’s lawyer undertakings for Registered Non-Financial Interests or Non-Registered Interests:
  1. In the Master Issues list, click the issue. The Issues Workbench dialog appears. In the Issues Workbench dialog, click the Undertaking Response checkbox, and then in the Undertaking text box, type the clause.
  2. In the Include As section, click the Seller's Lawyer Undertaking radio button.
If you wish to change the financial/non-financial attribute of the registered interest, click the Financial Encumbrance Yes/No radio button.

Additional Undertakings

If you want to include a comment about any of the clauses in the Buyer's Lawyer Undertaking letter, in the Additional Undertakings section:
  1. In the Paragraph Number box, type the paragraph number as it appears in the Buyer’s lawyer Undertaking letter you are referring to, and then in the Text field, type your comment.
Note: You can use precedent wording from the menu of saved text items. To select the text, click the ellipsis button and click the clause you want to include.

Other Matters

To add text to the Other Matters section of the Undertaking letter:
  1. In the Master Issues list, click the issue. The Issues Workbench dialog appears. In the Issues Workbench dialog, click the Undertaking Response checkbox, and then in the Undertaking text box, type the clause.
  2. In the Include As section, click the Other Matters radio button.

Adding items directly to the Undertaking Letter from the Response to the Undertaking Letter tab

From the Response to Undertaking Letter tab in the Other Items not from Issues section:
  1. From the Type dropdown, select the type you want to add, and then in the Text field, type the text you want added to the Undertaking letter.

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