Creating an Undertaking Letter (BC)

Creating an Undertaking Letter (BC)

To access the Undertaking letter, navigate to the Manager screen; next, select the Undertaking Letter tab in a Purchase file. The undertaking letter has the following components, described in more detail below:
  1. Enclosures
  2. Buyer’s Lawyer Undertakings
  3. Seller’s Lawyer Undertakings 
  4. Other Matters
Note: If you want to amend or change the wording and presentation of the undertaking letter or the wording of a particular undertaking, you can do so by editing the Undertaking Letter master document.

Enclosures

The following items are included as enclosures in each letter:
  1. Seller's Statement of Adjustments
  2. Statutory Declaration re: Income Tax Act
  3. Statutory Declaration re: Survey
The following enclosures are automatically created, if applicable:
  1. If the property is a Strata - Locker and Parking Assignment. 
  2. If the property is a new home - New Home - GST Certificate.
  3. If the property is not a new home - Certificate as to GST Form 194-V-I (sellers are not a builder).

Buyer’s Lawyer Undertakings

Undertakings 1 – 4 in the standard Undertaking letter under the Buyer’s Lawyer Undertakings section of the Undertaking Letter are included for every file.
  1. Undertaking 1 stipulates that the buyer’s lawyer will not be able to complete the transaction unless sufficient funds are received by the buyer’s lawyer.
  2. Undertaking 2 stipulates that if the buyer is obtaining a new mortgage, all conditions of the buyer’s new mortgage will be fulfilled, including disbursement of mortgage funds and registration, prior to registration of the Transfer.
  3. Undertaking 3 deals with the disbursement of funds.
  4. Undertaking 4 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 Letter checkbox. In the Undertaking text box, type the text for the additional undertaking.
  2. Click the Buyer’s Lawyer Undertaking radio button to tell the system you want the wording added as an undertaking.
Note: You can also add precedent wording as an undertaking by clicking the ellipsis button and selecting the appropriate clause from the precedent list.

Seller’s Lawyer Undertakings

This section sets out the undertakings after which the buyer’s lawyer forwards money to the vendor’s lawyer.

Non-private mortgages

If the title search discloses registered non-private mortgages and you select the Seller Lawyer to Resolve option, the Undertaking letter will automatically include each non-private mortgage as an item to be paid out and discharged at the beginning of the vendor’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. 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 Undertaking letter as a Seller Lawyer to Resolve item. The Issues Workbench dialog appears; in the Issues Workbench dialog, click the Undertaking Letter 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.
Note: You can use precedent wording from the menu of saved text items. To select the text, click the icon, and from the list, click the text you want to include.
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 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 Letter 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.
Note: You can use precedent wording from the menu of saved text items. To select the text, click the icon, and from the list, click the text you want to include.
If you wish to change the financial/non financial attribute of the registered interest, click the Financial Encumbrance Yes/No radio button.

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 Letter checkbox, and then in the Undertaking text box, type the clause. 
  2. In the Include As section, click the Other Matters radio button.
Note: You can use precedent wording from the menu of saved text items. To select the text, click the icon, and from the list, click the text you want to include.

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

From the Undertaking Letter tab in the Other Items not from Issues section:
  1. From the Type drop-down, select the type you want to add, and then in the Text field, type the text you want added to the Undertaking letter.
Note: You can use precedent wording from the menu of saved text items. To select the text, click the icon, and from the list, click the text you want to include.

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