Layman Terms for Closing Documents for Real Estate Purchase of Resale

Sample Closing Documents Download

Retainer Agreement

The Retainer Agreement is a work for hire contract that you have with our law firm that defines and sets out the terms of our relationship.


Joint Retainer/Acknowledgement of Conflict

This document acknowledges that the lawyer law represents the Purchaser in the real estate transaction, and that the same lawyer has also has been requested by the institutional lender to represent it in register the mortgage. Accordingly, the lawyer cannot treat information as received from either party as confidential from the other with respect to the transaction. (ie, there are no secrets between the Purchaser, lender, and lawyer respecting the transaction.) If a conflict of interest arises between Purchaser and lender, the lawyer cannot act for either party in the transaction.

Note: For a private mortgage, there cannot be a joint retainer by Borrower and Private Lender (unless there is an exemption available under the rules of the law society). There must be separate legal representation for each the Borrower and Private Lender.


Statutory Declaration (One and the Same)

Where the names on the Purchaser's identification do not match each other or that on title (for e.g. name change, married versus maiden name), a statutory declaration stating that the identifications with different names refer to the same person must be executed and commissioned.


Direction and Declaration Re. Construction Lien Act

In this document, the Borrower warrants to the best of its knowledge that the property does not contain urea formaldehyde and declares generally that mortgage proceeds are not being used to finance a building mortgage, property alterations or construction.


Purchaser’s Undertaking & Direction Re. Title

In this document, the Purchaser provides the Seller and the Seller’s lawyer with an undertaking (ie promise) to readjust for any expenses owed by the Purchaser to the Seller for any prepaid expenses made by the Seller (for eg. prepaid property taxes).
This document also sets out how the Purchaser wishes to take title to the property. It will include the Purchaser’s full legal name, birthdate, and address for service. If there is more than one Purchaser, the manner in which they wish to take title must also be specified (i.e. as joint tenants or tenants and common).

這份文件亦列明買家希望如何獲得業權,當中包括買家的全名,出生日期和送達地址。如果有多於一個買家,文件須列明他們如何分配業權 (即聯權共有人或分權共有人)。

Acknowledgment and Direction (Transfer/Charge)

In this document, the Purchaser authorizes the lawyer to transfer ownership of the condo unit to the Purchaser on closing day and to electronically register the Purchaser’s name on the title deed for the condo unit with the Land Registry Office.


Acknowledgment and Direction from Purchaser Re. Titleplus

In this document, the Purchaser consents to the procurement of a title insurance policy instead of a lawyer's opinion on title. Title insurance is used by practically all law firms. It is a substitute for a lawyer’s opinion which involves independently searching/contacting various government organizations for claims against the property that might not be captured in standard searches. Such non-standard searches are costlier and more time-consuming than title insurance and may not necessarily be conclusive. The industry created title insurance to effectively and affordably protect title for new owners.


Acknowledgment Re. Standard Charge Terms

This document acknowledge’s that the borrower has received a copy of the Standard Charge Terms (SCT) for the mortgage. The SCT for a mortgage generally include (but may not be limited to):

  • Lender has right to register mortgage on property title with Land Registry Office
  • Borrowers title to the property is lawful
  • Borrower is to maintain the property/repair/pay taxes
  • Borrower promises to pay mortgage payments and lender can sue for shortfall
  • Interest is compounded when there is a default – (ie double interest)
  • Lender can initiate a power of sale after a specified number of days after payment default. After property is sold under a power of sale, if there is still any loan balance outstanding, the lender may sue the borrower to recover any deficit
  • Lender can have the right to distrain or seize personal assets located on the mortgage property

Above are some common terms in the SCT. However, every lender has their own set of SCT.


  • 借出人有權利在土地註冊處登記物業業權的押記
  • 借款人的業權是合法的
  • 借款人需保養、維修物業及繳付稅項
  • 借款人承諾付按揭費用,借出人可以就差額提出訴訟
  • 若有任何失責行為,利息以複利計算(即雙重利息)
  • 在欠繳的指定日數後,借出人可以行使出售權。若在行使出售權出售物業後,仍未繳清貸款,借出人可以對借款人提出訴訟追討餘額。
  • 借出人有權利扣押或檢取按揭包含的個人資產


Restrictive Covenants

(Note: not all property contains Restrictive Covenants - this will depend on the results of the title search.)
These are restrictions on your use of the land that may or may not have an expiry date. For eg., prohibition on parking a trailer on driveway/building shed in backyard/backyard line-drying, altering grading of the land or storm water drainage.


Statement of Adjustment

This statement lists various debits and credits owning to purchaser and/or seller in addition to the Purchase Price based on pre-payments that are made effective closing date. For eg. Purchaser's deposit, property taxes, heater rental, condo fees.


Affidavit as to Land Transfer Tax Act Record Keeping Obligations

As part of the Land Transfer Tax report registered together with the Transfer/Deed (i.e. property ownership) the new owner must retain information that is used to determine taxes.


Affidavit as to Prescribed Information for Purposes of Section 5.0.1 Land Transfer Tax Act

As part of the Land Transfer Tax report registered together with the Transfer/Deed (i.e. property ownership) the new owner must declare certain information about the circumstances concerning the purchase.


Prescribed Information for Purposes of Section 5.0.1 Land Transfer Tax Act

These are responses submitted to the government on the circumstances concerning your purchase.


Land Transfer Tax Affidavit

This is the purchaser’s affirmation as to the purchase price and any rebates claimed (as applicable) for the purpose of calculating Land Transfer Tax.