by Safiyya Vankalwala

In this real-world example, both the vendor’s and purchaser’s lawyers were advised by the Land Registry Office (LRO) that the legal description of the property did not meet registration requirements. The LRO warned that if the issue was not fixed, both the transfer and the mortgage would be withdrawn.

Despite the clear warning, neither lawyer acted in time. As predicted, the transfer and mortgage were withdrawn. To make matters worse, the original owner went on to transfer the property to someone else, and a new mortgage was registered. The intended purchaser, now without the property, brought a negligence claim against his lawyer.

Risk Management Tips

1. LRO should never be ignored: Warnings from the LRO are not suggestions — they are critical. Ignoring them can have serious consequences, including the withdrawal of transactions.

2. Report: If there is a problem, you have an obligation to report right away to the title insurer and LAWPRO. Early reporting is also in your best interest — insurers bring experience and resources that can help resolve issues before they escalate.

3. Act quickly: Time is of the essence in real estate transactions. Ensure that any issues are addressed promptly to avoid complications.

4. Establish a routine: A structured daily routine can improve focus and efficiency. For example, set specific times during the day to check and respond to messages and emails. Create consistent routines for flagging, prioritizing, and scheduling tasks.

5. Use digital tools: Leverage digital calendars and task management systems to track deadlines. Set internal deadlines well in advance of the actual due dates to provide additional time buffers.

In the fast-paced world of real estate transactions, overlooking warnings or details can lead to successful claims and reputational damage. Stay responsive and when in doubt, get help.

PracticePRO is LAWPRO’s risk management division. If you have a risk management question, need help finding a resource, or are not sure whether a situation should be reported as a claim, contact PracticePRO.

If your question relates to practice management or professional conduct (e.g., Rules of Professional Conduct), reach out to the Law Society of Ontario’s Practice Management Helpline.

Categories: Real Estate