X hits on this document





4 / 14

FirstLine Matrix – April 2012 Page 4 Statement may be received after closing, and in any event must be provided to all mortgagors and guarantors upon

receipt. provided progress

Pursuant to the federal Electronic Documents Regulations, the subsequent disclosure statement may be to the borrowers and guarantors by personal delivery or by mail, but not by electronic means (such as fax). For advances, we will mail the Disclosure Statement directly to the mortgagors and guarantors.

  • (16)

    any mortgagors and guarantors NOT receiving a direct benefit from the proceeds of this mortgage receive independent legal advice.

  • (17)

    in Ontario only, all mortgagors and guarantors execute the Acknowledgement/Direction and Guarantee (if the mortgage is registered electronically);

  • (18)

    the mortgage documents are executed in your presence and all the parties who have executed the same are who they purport to be;

  • (19)

    all mortgagors and guarantors in an electronically registered mortgage understand the effect of the document and agree to be bound by such document to the same extent as if they had “signed” it and that all guarantors execute the “Acknowledgement/Direction and Guarantee” ;

  • (20)

    all mortgagors and guarantors acknowledge receipt of a copy of the mortgage and Standard Charge Terms which govern the mortgage before signing the mortgage, and have an opportunity to review them;

  • (21)

    where the Property is new construction and is not connected to local municipal services, a satisfactory copy of the septic tank certificate, together with any other certificates required by the appropriate governing body are obtained and reviewed by you prior to funds being advanced and are retained in your file for a period of 7 years (a septic tank certificate and any other certificates required by the appropriate governing body are required for existing construction only where you have knowledge that there may be problems with the septic system);

  • (22)

    where the Property is not connected to municipal services, the following certificates are obtained and reviewed by you prior to funds being advanced and retained in your file for a period of 7 years:

    • a satisfactory certificate from the appropriate health authority indicating the well water is suitable for human consumption, and

    • a satisfactory well driller’s certificate, confirming that the water flow is adequate, if the property is a new construction. Retain a copy of these certificates in your file for a period of 7 years following closing. You must advise us immediately if there are any issues relative to the water potability or water flow;

  • (23)

    if the mortgage is a refinance of an existing mortgage in favour of CIBC Mortgages Inc., the septic tank and well certificates indicated in paragraphs 21 and 22 above are not required unless a problem is expected;

  • (24)

    you inquire from the applicants as to any pending sale(s) or further transfer(s) of ownership of the Property. If you become aware of a pending sale or transfer of ownership of this Property, you must advise us immediately and obtain further instruction before advancing any funds.

OPTION 2 – Title Insurance Option (This Option must be used if the mortgage is signed under power of attorney or if the transaction involves a private sale or if the mortgage is secured by property on private leasehold land in Campbellton, New Brunswick.)

If you choose this option, then only items 1, 4, 5, 11 and 20(a) of the above Option 1 will not apply. We will only accept title insurance issued by a title insurance company that has been approved by us prior to your request for funds. In addition, it is your responsibility to provide us with the name of the approved title insurance company and the individual title insurance policy number in the Solicitor’s Interim Report/Requisition for Funds. You should obtain and follow the instructions of the title insurance company in this regard.

For any matter not covered by the title insurance policy, it is your responsibility to advise us prior to disbursement of funds and to obtain our instructions. You must ensure that the mortgagor pays the required premium or you must pay the required premium to the title insurance company.

Where there is more that one advance, you are responsible for obtaining any subsequent or additional endorsements from the title insurance company, if applicable.

OPTION 3 – Western Law Societies Conveyancing Protocol (the “Protocol”) Option

We accept the use of the Protocol for the types of property covered by the Protocol as of May 1, 2007. It is your responsibility to review the Protocol applicable to your province to determine whether or not it may be applied to this particular mortgage transaction. The applicable Protocol is available from your provincial Law Society. If the mortgage transaction is one to which the Protocol applies and you choose this option, then you may disburse the mortgage funds in accordance with the Protocol and the following shall apply:

  • (1)

    all of the items of the above Option 1 apply, except for items 1, 4 and 5;

  • (2)

    you are responsible to ensure that the mortgagor will obtain good and marketable title to the mortgaged lands and premises described in our Mortgage Approval (the "Property") and that the mortgage will be registered in the proper Land Registry or Land Titles Office and will be a valid first charge on the Property subject only to any intervening registrations between the day before the funds are disbursed to the date of registration of the mortgage and those matters approved by us prior to registration of the mortgage;

  • (3)

    on the day prior to the date the mortgage funds are disbursed, you will ensure that there are no executions or judgments affecting the Property; and

  • (4)

    you will ensure that all known discrepancies in the legal description, title defects, reservations and restrictions, encroachments, encumbrances and easements (other than routine easements for public utilities provided no part of the building on the Property is affected) are referred to us with your opinion as to its/their marketability of title and you undertake to notify us immediately upon receiving any information alleging any discrepancy of title defect or any encumbrance loss of priority of the mortgage.

  • (5)

    By issuing a Protocol opinion for the mortgage transaction, you represent that:

    • a.

      this mortgage transaction is a transaction to which the Western Law Societies’ Conveyancing Protocol ( insert province) applies.

Document info
Document views17
Page views17
Page last viewedMon Oct 24 21:36:53 UTC 2016