Property and Conveyancing scenario:

Imagine this scenario – you own a large property but the boundary zigzags between you and your neighbour, including between structures built on your property. The logical step is to tidy up the irregular boundary, in effect by swapping sections of the land parcels you each own and creating a new boundary. You and your neighbour reach agreement and agree to share the costs of legalising the arrangement. That involves paying a surveyor to draw up plans identifying the new boundary and identifying the separate land parcels to be exchanged. The new plan is ready to be lodged at the Land Titles office when..... wait a minute. You realise each property has a mortgage.

Did anyone think to consult their bank and seek their consent to swapping parts of the land? What happens if one bank agrees to the proposal and the other bank refuses? If the boundary realignment proceeds, what happens to your mortgage? After all, you have borrowed money based on the value of your property and this parcel you are swapping forms part of the bank’s security. Meanwhile, time is passing and you want to sell your property but there is still no boundary adjustment in place. These are the initial steps in a quite complex transaction that requires our expert guidance to ensure it is properly effected so that that your interests (and that of your bank) is protected and all parties act cohesively and efficiently.