Electronic registration
January 8, 2002

There is a revolution going on in the world of how lawyers close real estate transactions. The change has to with how documents are registered. In the good old days (well, the sort of good old days) we used a paper system requiring signatures galore on all documents. That system spelled the end of many a tree! It was cumbersome and produced massive sized files.

The revolution revolves around electronic registration of documents in a real estate deal.

What it is;

Electronic registration is a paper less system that allows lawyers to create, submit and register documents relating to a real estate transaction electronically. The consumer merely authorizes his or her lawyer to apply signatures electronically on their behalf and to register documents from the computer.

How it works;

For the past several years, the province has been converting the old land records to electronic files. A lawyer can do a title search of a property from his or her office if the property has been converted. In some areas the actual registration of the closing 'documents' can be done from the lawyers office too! In Peel, Halton, Hamilton -Wentworth, and London, it is mandatory that all transactions involve electronic registrations. In those areas, the lawyers involved create electronic 'documents' and then form an agreement as to how monies and keys are to be exchanged.

Typically, once the 'documents' have been registered the lawyers will agree to release keys and funds. If only one of the two lawyers involved in the transaction is set up for electronic registration, then the lawyer not set up must attend at the other lawyers' office to close.

This new process will become mandatory in other regions in Ontario as the province completes the conversion process. Ultimately, all closings in Ontario will involve electronic registration.

What this means;

Make no mistake, the revolution of new technology including electronic registration involves a fresh way of looking at the process of how real estate transactions are closed. Some lawyers do well with change and others resist. Some adapt, and some do not. As with any revolution, those who adapt tend to prosper and prevail. Sad to say, we still see lawyers who only have typewriters in their offices -operating on the theory that since it's always been done one way, then that way must forever be acceptable.

It is a certainty that process changes will flow from this revolution and the home buying process will be smoother and easier as a result. Today, we are still in the mode of having growing pains -with some lawyers adapting to the new system and using it effectively and some who do not.
Be sure your lawyer is up with the times and uses technology to maximize the service they provide.

Visit our website! Click here - www.kormanassociates.com for a comprehensive review of the homebuying process as well as an archive of useful articles!