Real estate registration in Manitoba is very different from other provinces in our country. In Manitoba, the registration of a document – including a mortgage, a transfer of land or a caveat – requires approximately 10 – 28 days depending on the number of registrations filed ahead of yours in the Land Title Office.
Because of the long delays experienced at the Land Title Office, a method had to be found to bridge the time gap between when the documents are ready and sent for registration and the date upon which they are actually registered.
Did you know that you might not receive your money the day you give up possession of your property?
That’s right – as a result of the registration process in Manitoba, if you have not negotiated protocol closing in your offer of purchase and sale, you likely won’t receive the proceeds of your sale until weeks after the possession date.
Did you know that you could receive your money the day you give up possession of your property?
What is protocol closing?
The term “protocol closing” means that a real estate transaction is going to be completed by using the Western Conveyancing Protocol (“WCP”).
The WCP is an arrangement/agreement between the law societies of western Canada which allows certain real estate transactions to “close” (including the transaction of money) on the closing date, even though the actual registration of the documents has not taken place at the Land Title Office.
Protocol closing allows the buyer to have possession of the property, the seller to receive their sale proceeds, and for the realtors to receive their commissions – even though the actual transfer of land and mortgage have not been registered.
What are the procedures of protocol closing?
One of the criteria to use a protocol closing is that the buyer has used a protocol lender. Please ensure that prior to agreeing to this type of a closing that you have confirmed that in fact the purchaser’s lender is in fact a protocol lender.
Other procedures would include the agreement between the purchasers and the vendors as well as ensuring that the lawyers involved in the transaction are all aware and able to complete on the basis of protocol closing.
When is protocol NOT available?
- Sale of a condominium by a developer
- Commercial transactions
- Agricultural properties
- Leasehold transactions
- Construction loans
- Completion mortgages
Now ask yourself…
If I am involved in a transaction that meets all the criteria of protocol closing, why am I not conducting real estate in this way? What are the benefits to you as a purchaser? What are the benefits to you as a vendor?
Has your realtor explained them all to you? If not, you should ask yourself why.