The Acknowledgment and Direction

What is an Acknowledgment and Direction?

In electronic registration documents are signed and registered electronically by lawyers or their assistants. The Acknowledgment and Direction is a form produced by the electronic registration system or prepared by the lawyer which summarizes the contents of the document to be registered and contains written instructions from the client to the lawyer authorizing the lawyer to deliver and register the document.

The Acknowledgment and Direction forms generated by the electronic registration system includes the following information:
 

  • the client's acknowledgment that the information in the Acknowledgment and Direction is accurate;
  • the client's authorization to the lawyer to electronically register the document;
  • the client's authorization to the lawyer to enter into the Document Registration Agreement (DRA);
  • the client's acknowledgement that the client understands the contents of the document; and
  • the client's warranty as to the identity of the client.

Practice Guideline 3 - The Acknowledgment and Direction  

Where can I obtain the Acknowledgment and Direction forms?

The electronic registration system has been designed to produce five different standard forms of Acknowledgments and Directions:
 

  • Transfer (Transferors)
  • Transfer (Transferee)
  • Charge (Chargor)
  • Discharge of Mortgage/Charge (Chargee)
  • Document General

A sample copy of the standard form Acknowledgment and Direction may be obtained from the Teranet website at www.teraview.ca. Amendments should be made to the standard form to meet the circumstances of the individual transaction. Alternatively, one may draft his or her own form of Acknowledgment and Direction containing the pertinent information. However, if one drafts his or her own form of Acknowledgment and Direction, it is still recommended that the electronic registration document registration report be attached to the form.

Practice Guideline 3 - The Acknowledgment and Direction   

When should my client sign the Acknowledgment and Direction?

The appropriate form of Acknowledgment and Direction for each electronic document to be registered under electronic registration should be signed by the client before each electronic document is released for registration.

Practice Guideline 3 - The Acknowledgment and Direction

Should I refer to the Document Registration Agreement (DRA) in the Acknowledgment and Direction?

Where an electronic document relates to a transaction where it is also appropriate for the lawyer to enter into a DRA, ( where the lawyer represents the vendor or the purchaser of a property under an agreement of purchase and sale ) a statement authorizing the lawyer to enter into the DRA should be included in the Acknowledgment and Direction. A true copy of the DRA should be appended as a schedule and should also be signed by the client.

Practice Guideline 3 - The Acknowledgment and Direction

What if amendments need to be made to the document after my client has signed the Acknowledgment and Direction?

The description of the electronic document contained in the Acknowledgment and Direction should correspond exactly to the electronic document which is ultimately registered. In a situation where an amendment, which is not merely clerical in nature, is made to an electronic document after the Acknowledgment and Direction has been signed, an amended Acknowledgment and Direction that includes all changes should be prepared and signed by the client(s) prior to registration.

Practice Guideline 3 - The Acknowledgment and Direction

Should I continue to obtain written instructions from my client for matters not dealt with in the Acknowledgment and Direction?

The Acknowledgment and Direction only confirms client instructions for registration of an electronic document and a related DRA in some instances. Lawyers should continue to obtain written instructions from client(s) for issues not directly related to the registration of the electronic document itself and in particular for issues in those transactions where they will be providing qualified opinions on title.

For example, if a lawyer is representing the parties named as purchasers in an agreement of purchase and sale for property and the lawyer receives instructions from those parties to electronically register a Transfer in favour of a third party as transferee, in addition to obtaining an Acknowledgment and Direction from the party to be named as transferee in the Transfer document, the lawyer should also obtain written instructions from all parties who are purchasers under the Agreement of Purchase and Sale. Those instructions should set out the party to be named as transferee.

Practice Guideline 3 - The Acknowledgment and Direction

My clients will be signing an Acknowledgment and Direction. How should I handle this?

Whenever possible, lawyers should meet with their clients and review with them the Acknowledgment and Direction and any other written client instructions before the electronic document is released for registration. If it is not possible for the lawyer to meet with the client, the lawyer should arrange for this document to be signed with the safeguards appropriate for the execution of any original document.

The review should include a detailed explanation of the contents of the Acknowledgment and Direction and other client instructions before signature.

Lawyers should continue to request identification from clients to verify the identity of the clients and must comply with the requirements of By-Law 7.1.

In addition, lawyers should retain signed copies of the Acknowledgment and Direction in their files as the written verification of client instructions and authority for the electronic registration of documents.

Practice Guideline 3 - The Acknowledgment and Direction 

 

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