Daily Dispatch

Why must I, the purchaser, pay the transfer fees, but the seller can choose the attorney?

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I’m buying my first property. I’m quite nervous about everything and a friend of mine who is a conveyance­r said she would help me with the transactio­n. However, the seller is refusing and insisting that his attorneys must do the transfer. If I am the one paying the transfer fees, surely I should be able to nominate the attorney to do the transfer? AS A rule of thumb, our common law determines that a seller is the party entitled to nominate the transferri­ng attorney, given that the seller carries more risk than the purchaser.

That said, nothing prohibits parties from agreeing that the purchaser can nominate the transferri­ng attorney, although often in practice, the seller refuses to agree to such a condition and the purchaser then concedes since s/he wants the property.

Generally, it could be said that it makes more sense for the seller to nominate the transferri­ng attorney as the purchaser is required to raise the purchase price, cover the transfer fees and meet suspensive conditions such as financing etc and the seller would generally feel more protected by his attorney managing these important elements and ensuring a speedy transactio­n and receipt of the purchase price.

The transferri­ng attorney has to ensure the purchase price is secured and available and a purchaser’s attorney may be persuaded to rely upon assurances of his client that the money is available, with dire consequenc­es for both purchaser and attorney, should this prove to be incorrect.

In short, it is generally seen that the seller, as the owner of the property to be transferre­d, stands to lose more and thus has a stronger claim to the appointmen­t of a conveyance­r.

But regardless of who appoints the conveyance­r, the conveyance­r owes a duty of care to both parties and must represent both fairly, unless a dispute arises, in which case the transferri­ng attorney will be allowed to act on behalf of the party who nominated him.

It remains open for parties to negotiate the appointmen­t of the transferri­ng attorney and include a clause to such effect in the contract of sale, and good grounds may exist which supports the purchaser being entitled to appoint the transferri­ng attorney.

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