When registering electronically, a trust procedure is recommended, as purchase funds, keys and off-title documents cannot be moved electronically between the parties. The DRA is a standardized form of agreement that governs the relationship between the parties until all documents and funds are exchanged and electronic registration has been made. The DRA is an agreement between the parties to the transaction. Please note that the DRA sets strict trust conditions that only concern the closing procedure. Practice Direction 4 – Electronic Accounts and Electronic Registration of the DRA and LawPROs Position on Franchise Rights When a buyer receives financing for the acquisition, the lender`s lawyer will usually request a tripartite document registration agreement (between the buyer`s lawyer, the seller`s lawyer and the lender`s lawyer) in order to regulate the release of documents, of funds and the conclusion of registrations. Although the standardized form of the DRA refers to “the buyer`s lawyer” and “the seller`s lawyer”, it is not intended that the contract is limited to purchase and sale transactions. Lawyers representing mortgages, guarantors and others in real estate transactions may be necessary parties to the DRA. Appropriate additions or amendments to the standard form of the ERD may be made to reflect additional parts and other commitments. Full prior understanding of your obligations/obligations will help you avoid unpleasant scenarios on the day of closing if your client demands the release of keys and/or money before the transfer is registered or invites you to suspend the closure until certain circumstances that were not foreseen by the DRA are not available elsewhere. Your DRA can be tailored to your specific transaction.
With the permission of your client, you are allowed to plan before the registration of the transfer before ownership or to agree on other conditions agreed by the parties. I know this information is fundamental to many of you, but it`s surprising how many lawyers don`t seem to fully understand the extent of their trust obligations in the real estate context. . . .