Form 9C
This Form is indicated at section 13 of By-law 9. This guide is not intended as legal advice.
Last updated
This Form is indicated at section 13 of By-law 9. This guide is not intended as legal advice.
Last updated
According to , lawyers in Ontario must use for electronic transfers when withdrawing closing funds from a trust account for real estate transactions. Here are the rules and requirements they must follow:
Definitions (Subsection 1):
This section defines important terms for understanding the rules.
"Closing funds" means the money needed to complete a real estate transaction.
"Transaction in real estate" refers to specific legal actions related to land or property.
Withdrawal by Electronic Transfer: Closing Funds (Subsection 2):
Despite what's said in Section 12, you're allowed to take closing funds from a trust account electronically under certain conditions.
When Closing Funds May Be Withdrawn (Subsection 3):
You can't take closing funds from a trust account electronically unless you meet these conditions:
The electronic system you use has restricted access, like using passwords or access codes.
Your electronic system can immediately provide a confirmation after transferring funds.
This confirmation must include various details, like who's involved, account numbers, and the date of the transfer.
Before using the electronic system for the transfer, you must sign an electronic trust transfer requisition. If you're not doing it yourself, someone else can, but they need to have authority and be financially responsible.
The data you enter into the electronic system must match what's specified in the electronic trust transfer requisition.
Additional Requirements Relating to Confirmation (Subsection 4):
After making an electronic fund transfer, you have to: a. Get a printed confirmation (mentioned in condition 2 of subsection 3). b. Check if the printed confirmation matches the requisition you signed (from condition 4 in subsection 3). c. Note the client's name, file details, and file number on the printed confirmation. d. Sign and date the printed confirmation.
Using a Designated Person (Subsection 5):
In unusual situations, someone other than you can do the tasks mentioned in subsection 4, but they need the authority and financial responsibility.
Electronic Trust Transfer Requisition for Closing Funds (Subsection 6):
The requisition needed for electronic fund transfers for closing funds, as mentioned in condition 4 of subsection 3, should be in Form 9C.
In simple terms, Form 9C (the electronic trust transfer requisition) is essential when you want to transfer closing funds electronically from a trust account. To do this, you must follow certain conditions, like ensuring secure access, using a specific electronic system, and providing a confirmation with specific details. After the transfer, you must verify and document the transaction. In exceptional cases, someone else can perform these tasks if they have the authority and financial responsibility. So, Form 9C helps maintain transparency and accountability in electronic fund transfers for real estate transactions.