Lawyers in Ontario use Teranet/Teraview (or other providers) to obtain conveyancing related services such as land titles fees, searches and land transfer taxes in Ontario.  When the firm conducts searches or registrations, Teranet/Teraview will withdraw the fees from the firms’ designated Teranet bank account, whether trust or general. Firms are not allowed to use the primary mixed trust or the primary operating account. Generally, a dedicated bank account is maintained with authorization for provider to withdraw amounts automatically. To track this in CosmoLex you must move the funds the day before to the designated account.

 

Most commonly, firms maintain a dedicated general account for this purpose. However, at times, a dedicated trust account can be setup as well. The purpose of this article is to illustrate the CosmoLex workflow related to these activities. In Ontario the difference of what type of account to use will directly affect the monthly work you also do. Trust accounts must be reconciled, whereas the general account must track all the deposits and withdrawals.

 

Initial Bank Setup (One Time Activity)

 

  • If a dedicated General Bank is used, a new General account should be created in CosmoLex.

  • If a dedicated Trust Bank is used, a new Trust Bank account should be created in CosmoLex. 

  • If your firm’s current general account is being used, no activity is required. (double check to see if this is an allowed procedure in the province)

 

Ongoing Transactions if you are using a dedicated General Bank for Teranet Withdrawals (Most Widely Used Method)

 

  • If funding Teranet Account from your General Account: 

    • Use Bank-to-Bank transfer process to move funds from your regular general to Teranet General for bookkeeping. Also ensure to use a wire transfer or a cheque to physically move the money from one account to the other.

    • As the firm is paying searches and LTTX amounts, the firm should create a client expense recovery (soft cost) that will be billed to the matter/file.

  • If funding Teranet Account from Client’s Trust Funds from Firm’s Pooled Trust Account: 

    • Enter withdrawal from Trust Ledger and deposit to Teranet Account for bookkeeping. Also ensure to use a wire transfer or a cheque to physically move the money from one account to the other.

    • As the charges are funded from client trust funds, no client expense recovery needs to be made as the general receipt and the general cheque should clear using the same GL account.

 

Ongoing Transactions if you are using a dedicated Trust Bank for Teranet Withdrawals:

 

  • Fund Teranet Account from Client’s Trust Funds, from Firm’s Pooled Trust Account: 

    • Enter withdrawal from Trust Ledger and deposit to Teranet Account for bookkeeping. Also ensure to use a wire transfer or a cheque to physically move the money from one account to the other.

    • As the charges are funded from client trust funds, no client expense recovery needs to be made as the general receipt and the general cheque should clear using the same GL account.

 

Monthly both banks and GL should be reconciled so as to never accrue these clearing accounts except when some roll over a month end.

Each jurisdiction have their individual requirements and new users should consult with your CosmoLex Certified Consultant and your LTO.

 

For Alberta using SPIN

http://www.servicealberta.gov.ab.ca/pdf/lt/Land_Titles_Introduction.pdf

 

For Saskatchewan using Information Services Corp.

https://www.isc.ca/Pages/Content%20Gallery/Forms%20Help/Packet%20Cover%20Pages/PacketCoverPageHelp.aspx?media=print

 

For BC using bcLand Title & Survey

https://ltsa.ca/

 

For Manitoba

https://www.tprmb.ca/tpr/landtitles.html

 

For Quebec

https://mern.gouv.qc.ca/english/land/register/index.jsp

 

For New Brunswick

https://www.pxw1.snb.ca/snb7001/e/2000/2400e.asp

 

For Newfoundland and Labrador

http://www.servicenl.gov.nl.ca/registries/deeds/deed_search.html

 

For PEI

http://142.176.0.108/landonline/login.aspx