With respect to the terms of the DRA itself, the seller`s lawyer is not allowed to waive the funds or closing documents until the previous state of: LAWPRO will therefore waive any deduction and legal costs if an action against negligence is made against a lawyer who innocently relied on the respect of the legal statement of the lawyer representing the other party. Another challenge for private mortgages is title insurance. Title insurance policies often include an exception to coverage where, in the event of mortgage/title fraud, the policy is invalidated when funds from a private mortgage have been paid to persons other than the registered owner, to the holder of a previously registered tax or charge, or to certain other creditors. Securities insurers have sometimes interpreted this exception as when a lawyer working for a private lender pays money to the lawyer acting for the borrower, the policy could be cancelled in the event of fraud. This interpretation has been rejected at least once by the courts and some title insurers have amended their exemption for private lenders to allow payment by the lender`s lawyer to the borrower`s lawyer, provided that the borrower`s lawyer agrees to pay the mortgage proceeds to the registered owner, former accountants or other creditors described in the title insurance. It is therefore a good practice for lawyers to check the lender`s insurance policy and discuss the private lender`s exception with the client before an advance is made. In terms of transaction documentation, private mortgages are not very different from other mortgages. However, lawyers should keep in mind that when operating for a private lender, they must complete Form 9D (Investment Authority) and 9E (Investment Report), both required by the Law Society of Ontario. Unloading a private mortgage at closing can be such a pointless fight. Being part of the DRA`s private mortgage document, and therefore being part of the trust, is so simple, yet very few lawyers seem to use this option. On the basis of the above, the seller`s lawyer is able to release funds if it is established in the Teraview system that the transfer was registered (in case the buyer`s lawyer did not have the courtesy to inform that the transfer was registered). Otherwise, it would appear that in case the transfer was not recorded until 18:00 p.m.