New Law Requires Two Lawyers When Buying or Selling a Home

Up until recently both the home buyer and seller could use the same lawyer in the purchase and sale of a home. Personally I never thought this was a good idea. Regardless of how smooth the home buying and selling transaction may appear, the seller and the buyer have totally different goals and interests.

The new rule does allow two lawyers from the same law firm to represent the buyer and the seller in the same transaction, as long as the rules on conflicts of interest are observed.

There are also certain limited circumstances where one lawyer may represent both parties as long as there is no violation of the conflicts of interest rule.

For example:

• a transfer where the seller and buyer is the same person and the change is being made to effect a change in legal tenure;
• a transfer being registered to give effect to a severance of land prior to the expiry of a consent under the Planning Act or pursuant to a municipal by-law;
• a transfer from an estate trustee to a person who is beneficially entitled;
• a transfer where the seller and buyer are spouses or common-law partners or are otherwise related persons as defined in section 251 of the Income Tax Act (Canada);
• the lawyer practices law in a remote location where there are no other lawyers that either the seller or the buyer could retain for the transfer without undue inconvenience.

The changes to the Rules of Professional Conduct took effect March 31, 2008

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This entry was posted on Wednesday, July 2nd, 2008 at 5:39 pm and is filed under Tips for Buyers, Tips for Sellers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “New Law Requires Two Lawyers When Buying or Selling a Home”

1. Tax Guy says:

   November 22, 2009 at 10:51 pm

   I’ve been included in taxes for longer then I care to acknowledge, both on the individual side (all my employed life!!) and from a legal point of view since satisfying the bar and following up on tax law. I’ve rendered a lot of advice and corrected a lot of wrongs, and I must say that what you’ve put up makes complete sense. Please carry on the good work – the more people know the better they’ll be equipped to comprehend with the tax man, and that’s what it’s all about.