The closing is scheduled for tomorrow and the Buyer’s lawyer has found out that there are two expired notices on title that should be cleared before closing. Seller’s lawyer is refusing to clear these notices and as a result, the Buyer will have them on title if they close. Apparently, it will cost $600.00 to solve. The Buyer’s lawyer wants the two agents to contribute.
It’s difficult to know just what these Notices may happen to be. It sounds like they are likely title defects and the Buyer is “out of time”. That’s significant, if that is the case, because now it’s too late. The Buyer has to close otherwise the Buyer is in default. The mortgage company might advance the funds upon the solicitor’s undertaking to resolve the problem.
However, who caused the problem in the first place? It looks like the Buyer’s lawyer is not prepared to accept responsibility.
The Buyer will have to pay $600.00 or face a likely $50,000.00 claim and have no property tomorrow. Did the law firms get the paperwork “on time”? Was there “sufficient time” when they did receive the material?
Title insurance will not resolve a known problem and this is “known”.
Brian Madigan LL.B., Broker