Section 13

Definitions

13. (1) In this section, “closing funds” means the money necessary to complete or close a transaction in real estate; “transaction in real estate” means, (a) a charge on land given for the purpose of securing the payment of a debt or the performance of an obligation, including a charge under the Land Titles Act and a mortgage, but excluding a rent charge, or (b) a conveyance of freehold or leasehold land, including a deed and a transfer under the Land Titles Act, but excluding a lease.

Withdrawal by electronic transfer: closing funds

(2) Despite section 12, closing funds may be withdrawn from a trust account by electronic transfer in accordance with this section.

When closing funds may be withdrawn

(3) Closing funds shall not be withdrawn from a trust account by electronic transfer unless the following conditions are met: 1. The electronic transfer system used by the licensee must be one to which access is restricted by the use of at least one password or access code. 2. The electronic transfer system used by the licensee must be one that will produce immediately after the electronic transfer of funds a confirmation of the transfer. 3. The confirmation required by paragraph 2 must contain, i. the name of the person or entity in whose name the account from which money is drawn is kept, ii. the number of the trust account from which money is drawn, iii. the name of the person or entity in whose name the account to which money is transferred is kept, iv. the number of the account to which money is transferred, and v. the date the transfer is carried out. 4. Before the electronic transfer system used by the licensee is accessed to carry out an electronic transfer of funds, an electronic trust transfer requisition must be signed by, i. the licensee, or ii. in exceptional circumstances, a person who is not the licensee if the person has signing authority on the trust account from which the money will be drawn and is bonded in an amount at least equal to the maximum balance on deposit during the immediately preceding fiscal year of the licensee in all trust accounts on which signing authority has been delegated to the person. 5. The data entered into the electronic transfer system describing the details of the electronic transfer of funds must be as specified in the electronic trust transfer requisition.

Additional requirements relating to confirmation

(4) Not later than 5 p.m. on the day immediately after the day on which the electronic transfer of funds is carried out, the licensee shall, (a) produce a printed copy of the confirmation required by paragraph 2 of subsection (3); (b) compare the printed copy of the confirmation and the signed electronic trust transfer requisition relating to the transfer to verify whether the money was drawn from the trust account as specified in the signed requisition; (c) indicate on the printed copy of the confirmation the name of the client, the subject matter of the file and any file number in respect of which money was drawn from the trust account; and (d) after complying with clauses (a) to (c), sign and date the printed copy of the confirmation.

Same

(5) In exceptional circumstances, the tasks required by subsection (4) may be performed by a person other than the licensee, if the person has signing authority on the trust account from which the money will be drawn and is bonded in an amount at least equal to the maximum balance on deposit during the immediately preceding fiscal year of the licensee in all trust accounts on which signing authority has been delegated to the person.

Electronic trust transfer requisition: closing funds

(6) The electronic trust transfer requisition required under paragraph 4 of subsection (3) shall be in Form 9C.