Enduring Power Of Attorney Nova Scotia: Complete Guide

Understanding how your finances and property are managed if you become unable to make decisions is important. In Nova Scotia, there are laws that allow you to plan ahead for this situation.

One legal tool for this purpose is called an enduring power of attorney. This article explains what it is, how it works, and how it is different from other types of powers of attorney.

Each section provides clear facts about the law and process in Nova Scotia. The goal is to help you understand the basics of enduring powers of attorney in straightforward terms.

What Is An Enduring Power Of Attorney In Nova Scotia?

An enduring power of attorney is a legal document used in Nova Scotia. It allows a person, referred to as the "donor," to choose someone they trust, known as the "attorney," to manage their finances and property.

This arrangement is governed by Nova Scotia's Powers of Attorney Act. The word "enduring" means that the authority granted in this document remains in effect even if the donor loses the ability to make decisions for themselves due to illness or injury.

A regular power of attorney in Nova Scotia ends if the donor becomes mentally incapable. In contrast, an enduring power of attorney stays in effect after incapacity, making it a specific tool for long-term financial and property management.

The attorney can handle tasks like:

• Managing bank accounts and investments

• Paying bills and filing tax returns

• Buying or selling property

• Making legal and financial decisions

How Does An Enduring Power Differ From Other Powers Of Attorney?

There are several types of power of attorney documents in Nova Scotia. Each type serves a different purpose and works in a unique way.

General Power Of Attorney

A general power of attorney grants someone the authority to make decisions about finances and property on behalf of another person, but only while the person who made the document remains mentally capable. If the donor loses mental capacity, this type of power of attorney automatically ends. A general power of attorney is often used for temporary reasons, such as when someone is travelling and needs help managing their affairs.

Springing Power Of Attorney

A springing power of attorney only becomes effective if the donor becomes mentally incapable. This type means the chosen person cannot act until a specific event—usually incapacity—takes place. In Nova Scotia, springing powers of attorney are less commonly used compared to other provinces.

Personal Directive For Health Care

A personal directive is a separate legal document used for health and personal care decisions. This document allows a trusted person to make medical and personal care decisions if the person who made the directive loses the ability to make those choices. A personal directive does not cover decisions about finances or property, as a power of attorney or enduring power of attorney typically handles these matters.

Why You Should Have An Enduring Power Of Attorney

Suppose a person loses the ability to manage their own finances or property, and there is no enduring power of attorney in place. In that case, the law in Nova Scotia requires a guardian to be appointed by the court. This process can be slow and involves paperwork, legal fees, and waiting for a judge to decide who will take on the responsibility.

Disagreements can arise among family members about who makes decisions when there is no apparent legal authority. Banks and other financial institutions cannot release funds or allow changes to accounts without proper legal documents.

The benefits of an enduring power of attorney are as follows:

• Helps avoid court proceedings. Prevents lengthy guardianship applications that can take months.

• Protects family relationships. Clear legal authority helps prevent potential disputes among relatives.

• Ensures bills get paid. The document ensures that the donor's financial obligations are maintained during incapacity.

Legal Requirements To Make A Valid Enduring Power Of Attorney

In Nova Scotia, the Powers of Attorney Act outlines specific rules for creating a valid enduring power of attorney. The document will only be legally recognized if it meets the below requirements.

Age And Capacity Of The Donor

A person making an enduring power of attorney in Nova Scotia is required to be at least 19 years old. The person is also required to be mentally capable at the time of signing. Mental capacity means being able to understand the nature and effect of the enduring power of attorney, including what property and finances are involved and the authority being given to the attorney.

Two Independent Witnesses

As of 2022, two independent witnesses are required for an enduring power of attorney to be valid in Nova Scotia. The previous law required only one witness. An independent witness is someone who is not named as the attorney, is not the spouse or partner of the attorney, and is not a beneficiary under the donor's will.

Wording That Ensures Endurance

The enduring power of attorney clearly states that it is intended to remain valid even if the person who made the document loses mental capacity. The document generally includes language such as: "This power of attorney continues to be effective even if I become mentally incapable after it is signed." Without this specific statement, the document may not qualify as an enduring power of attorney under Nova Scotia law.

Who Can Be Your Attorney Or Alternate

An attorney named in an enduring power of attorney manages property and financial matters for another person if that person becomes unable to do so. Choosing an attorney or alternate attorney involves following certain legal rules and considering several practical factors. We describe these in greater detail below.

Eligibility Rules And Restrictions

The person chosen as an attorney is required to be at least 19 years old and mentally capable when the document is signed. An attorney cannot also act as a witness to the signing of the enduring power of attorney. The law allows a corporation, such as a trust company, to be appointed as an attorney to manage financial affairs, though this is not common for most personal estate plans.

Factors For Choosing A Trustworthy Attorney

Selecting someone for the role of attorney involves considering qualities that support sound decision-making and reliable management of finances and property. Naming an alternate attorney is possible; this person steps in if the first attorney cannot or will not act.

Key qualities for the role of attorney include:

• Financial responsibility. This person manages money well and understands basic financial concepts.

• Availability. They live nearby or can travel when needed to handle urgent matters.

• Family harmony. The choice of attorney will not create conflicts among family members.

The person being considered for the role of attorney cannot have any undischarged bankruptcies or criminal convictions of dishonesty. This qualification was brought in with changes to the law in 2022.

Duties And Responsibilities Of An Attorney

An attorney named under an enduring power of attorney in Nova Scotia has legal responsibilities set out by law. The attorney's main responsibility is to manage the donor's property and finances according to the instructions in the document.

Fiduciary Duty And Best Interest Standard

An attorney is considered a fiduciary, which means they are in a position of trust. The attorney is required by law to act in the best interests of the donor at all times. This means putting the donor's needs before their own and avoiding any situation where their personal interests could conflict with those of the donor.

The attorney manages the donor's money, property, and financial matters honestly and carefully. The attorney cannot use the donor's property for personal benefit unless the enduring power of attorney document specifically allows it.

Record-Keeping And Reporting Under The Act

Nova Scotia law requires an attorney to keep accurate and complete financial records of all transactions made on behalf of the donor. This includes tracking money spent, received, or moved, and keeping receipts, statements, and other documents as evidence.

The attorney is required to provide an accounting if asked by the donor, certain family members, or other "interested persons." This means the attorney shares details about what has been done with the donor's property and money. Courts in Nova Scotia may also review an attorney's actions if questions or concerns arise.

Step-By-Step Guide To Creating An Enduring Power Of Attorney

1. Choose Your Attorney And Alternate

The person creating the enduring power of attorney selects a primary attorney and an alternate. The primary attorney is the first person who will have authority to act. The alternate can act if the primary attorney is unable or unwilling to take on the responsibility.

2. Define The Scope Of Authority

The enduring power of attorney may grant broad powers or limit authority to specific areas, such as managing bank accounts, paying bills, or selling real estate. It is possible to set restrictions, for example, prohibiting the attorney from making gifts or requiring additional approvals for selling property.

3. Draft The Document With Proper Language

The enduring power of attorney is written using clear legal language. The document includes an enduring clause that states the authority continues even if the person who created it loses mental capacity. It describes what powers are given, any limits, and any special instructions.

4. Sign Before Two Qualified Witnesses

The document is signed in the presence of two independent witnesses. Witnesses are people who do not benefit from the document and are not related to the attorney. All parties are present at the same time during the signing.

5. Register Or Notify Financial Institutions

Once the enduring power of attorney is signed and witnessed, financial institutions such as banks and investment firms are notified. If the authority includes managing or selling real estate, the document is registered with the Land Registry Office.

Witnessing Notarization And Registration Rules

An enduring power of attorney in Nova Scotia typically requires two independent witnesses. These witnesses confirm that the person signing the document understands what they are doing and is doing so voluntarily.

When Notarization Is Required

Notarization is not part of the standard process for an enduring power of attorney in Nova Scotia. A notary public is not required to witness the signing for the document to be valid under Nova Scotia law. However, some banks or financial institutions may prefer or ask for a notarized copy before accepting the document.

Land Registry Filing For Real Property

When an attorney might need to sell, mortgage, or otherwise deal with real property such as a house or land, filing the document with Nova Scotia's Land Registry Office is required. The registration process involves submitting the original or a certified copy of the enduring power of attorney to the Land Registry Office, along with a registration form and payment of the prescribed fee.

How To Activate Or Revoke An Enduring Power Of Attorney

An enduring power of attorney in Nova Scotia can become active in two main ways. Some documents state that the attorney's authority begins as soon as the document is signed. Others say the attorney's authority only begins if the person who made the document becomes mentally incapable.

Most enduring powers of attorney made in Nova Scotia are effective immediately, but attorneys are expected to act only when it is necessary, such as when the donor is unable to manage their finances or property due to incapacity.

Revoking, or cancelling, an enduring power of attorney is possible at any time as long as the person who made it is still mentally capable. To revoke an enduring power of attorney, the donor provides written notice to the attorney and any third parties, such as banks or other institutions that may rely on the document.

Risks If You Do Not Have An Enduring Power Of Attorney

If an enduring power of attorney is not in place and a person becomes mentally incapable, several legal and financial issues may arise. For instance:

• Court guardianship is required. The court may have to appoint someone to manage an individual's personal finances and property through a lengthy legal process.

• Family disputes. Without clear legal authority, family members may disagree about who handles financial and property matters.

• Financial hardship. Access to bank accounts and assets may be blocked, bills may go unpaid, and financial opportunities may be lost.

DIY Kits Versus Working With A Lawyer

There are two main ways to create an enduring power of attorney in Nova Scotia: using a DIY kit or working with a lawyer. Each approach has differences in cost, convenience, and the amount of legal expertise involved.

Cost And Convenience Comparison

DIY kits are less expensive than hiring a lawyer and are designed for straightforward situations that can be completed at home. However, DIY kits may not fit less common situations or allow for much customization. They typically follow a standard template and may not address all individual concerns.

Lawyers charge higher fees but offer advice tailored to a person's specific circumstances. Legal professionals can draft documents that include particular instructions or adapt the language for unique family, property, or business matters.

When Professional Advice Is Essential

Professional legal advice is important in certain situations. These include cases where an estate is complex, where there are family dynamics that could lead to disagreements, or where business interests are involved. A lawyer can help when there are specific restrictions or instructions that are included in the enduring power of attorney.

Safeguards Against Financial Abuse Under The 2022 Act

Nova Scotia's Powers of Attorney Act contains rules to help prevent financial abuse by attorneys under an enduring power of attorney. These rules are designed to protect the interests of the person who created the enduring power of attorney.

Court Oversight And Interested Persons

Courts have the power to review the actions of an attorney if someone raises a concern. Family members and other people known as "interested persons" can ask the attorney to provide a record of what they have done with the donor's money and property. If there is a disagreement or suspicion of misuse, these individuals can ask the court to look at the attorney's actions.

Remedies For Misuse Of Authority

There can be legal consequences if an attorney does not follow the law or uses their power inappropriately. The court can order the attorney to return money or property to the donor or to compensate for losses. The court can also remove the attorney from their role if it finds that they did not act in the best interests of the donor.

Next Steps For Protecting Your Estate And Finances

Preparing an enduring power of attorney is only one part of the estate planning process. Other common documents include a will, which addresses what happens to assets (money and property) after death, and a personal directive, which appoints someone to make health and personal care decisions if mental capacity is lost.

Speak With a Estate Planning Lawyer

Speak With a Estate Planning Lawyer 3

Preparing these documents simultaneously, as opposed to at different times, can help ensure that a person's financial, medical, and personal affairs are managed according to their individual wishes. Each document has a specific legal purpose and requires particular steps to be legally valid in Nova Scotia.

If you are in need of legal advice about enduring powers of attorney or estate planning, contact LM Legal Solutions, a law firm in Dartmouth serving clients throughout Nova Scotia. Our experienced team can provide guidance on your estate planning needs and help ensure your documents are properly prepared and executed.

FAQs About Enduring Power Of Attorney In Nova Scotia

Can an enduring power of attorney made in another province be used in Nova Scotia?

An enduring power of attorney created in another province is generally recognized in Nova Scotia. However, banks and other organizations in Nova Scotia may ask for the document to be registered locally or may request additional paperwork before accepting it.

What are the typical legal fees for having a lawyer prepare an enduring power of attorney in Nova Scotia?

Legal fees for preparing an enduring power of attorney vary based on how complex the situation is. Professional preparation ensures the document meets Nova Scotia's legal requirements and is tailored to your specific circumstances and wishes.

Can I appoint multiple attorneys to act together on my enduring power of attorney?

Yes, it is possible to appoint more than one attorney to act at the same time. Some people choose to require joint decision-making, which means all attorneys have to agree before taking action. This arrangement can make decisions slower if the attorneys do not agree or if one is unavailable.

How long does the process take to prepare and execute an enduring power of attorney in Nova Scotia?

If the situation is straightforward, an enduring power of attorney can be prepared and signed within a few days. If there are complicated instructions, special conditions, or multiple people involved, the process may take several weeks and can require more than one meeting.

Agreement of Purchase and Sale: Nova Scotia Requirements

Buying or selling property in Nova Scotia involves several legal steps. One of the most critical documents in the process is the Agreement of Purchase and Sale. Many people encounter this document for the first time when entering a real estate transaction.

Understanding what an Agreement of Purchase and Sale is—and what it includes—can help clarify the steps involved. This article explains the basics of this agreement as it applies to real estate law in Nova Scotia.

• What is an Agreement of Purchase and Sale in Nova Scotia
• Standard Forms Buyers and Sellers Commonly Use
• Essential Clauses Every Nova Scotia APS Contains
• Common Buyer and Seller Conditions
• Step-By-Step Timeline From Offer to Closing
• Title Search and Migration Requirements
• Costs and Taxes to Budget For
• Special Schedules For Different Property Types
• How Private Sales Differ From REALTOR® Transactions
• Why a Lawyer's Review Matters
• Move Forward With Confidence With LM Legal Solutions
• FAQs About Agreements Of Purchase And Sale In Nova Scotia

What is an Agreement of Purchase and Sale in Nova Scotia

An agreement of purchase and sale in Nova Scotia is a legally binding contract between a buyer and a seller. It outlines the terms and conditions for the transfer of ownership of property.

This agreement outlines key details including the purchase price, closing date, and any outstanding conditions that need to be met before the sale is finalized. Under Nova Scotia law, the agreement is required to be in writing to be enforceable. Both parties sign the document to show that they agree to its terms.

The Nova Scotia Real Estate Commission (NSREC) regulates most real estate forms used in our province. These standardized forms help ensure consistency across transactions and protect both buyers and sellers.

Standard Forms Buyers and Sellers Commonly Use

In Nova Scotia, most real estate transactions use standardized forms approved by the NSREC. These Nova Scotia real estate forms create consistency and help ensure all key points are addressed. The form that applies depends on the type of property and the nature of the transaction.

• Form 400 is the most common agreement of purchase and sale form 400 for existing homes. REALTORS® typically use this template when a buyer makes an offer on a house that has already been built and previously owned.
• Form 403 applies to new construction purchases. This form addresses details unique to new builds, such as construction completion dates and warranty provisions.
• Form 402 is a schedule added to Form 400 when buying a resale condominium unit. It includes clauses specific to condominium properties, such as the review of reserve fund studies and condominium bylaws.
• Form 408 is the waiver of conditions. If the realtor fails to provide this form by the time stipulated in the agreement, . If this happens, there is no way for lawyers to revive the previous deal.

Some buyers and sellers choose to have a lawyer draft a private sale agreement in Nova Scotia instead of using NSREC forms. This approach is common in private sales where no REALTOR® is involved.

Essential Clauses Every Nova Scotia APS Contains

Every real estate purchase agreement in Nova Scotia includes certain legal elements that make the contract valid and enforceable. These elements are required whether parties use a standard form or a private agreement.

The property identification section shows the legal description and civic address of the real estate. The purchase price states the total amount being paid and how the deposit is structured. The closing date indicates when ownership of the property transfers to the buyer.

Other legal elements included in a purchase and sale form:

• Property details: Legal description, civic address, and Property Identification Number (PID)
• Financial terms: Total purchase price, deposit amount, and payment methods
• Timeline: Closing date and key deadlines for conditions
• Inclusions: Fixtures and chattels that convey with the property

The agreement also includes representation and warranty clauses where the seller makes promises about the property's condition. An entire agreement clause states that the written contract is the only agreement between the parties, which replaces any previous verbal discussions.

Common Buyer and Seller Conditions

Conditions in an Agreement of Purchase and Sale act as protective clauses that allow a buyer or seller to exit the agreement if specific requirements are not met. These conditions have specified time frames and formal procedures for removal.

A financing condition allows the buyer to cancel if they cannot obtain a mortgage by a certain date. This condition usually ranges from 5 to 10 business days after the offer is accepted.

A home inspection condition gives the buyer time to arrange a professional inspection. The buyer can negotiate repairs, a price reduction, or choose to end the agreement if the inspection reveals significant issues.

The sale of buyer's property (SOP) condition makes the purchase dependent on selling the buyer's current home. If the buyer cannot sell their home within the agreed timeframe, they can exit the agreement.

To officially remove a condition, the buyer waiver of conditions form 408 is used. This form confirms that the condition has been satisfied or is being waived. Missing the deadline for waiving a condition can void the agreement.

Step-By-Step Timeline From Offer to Closing

The real estate closing in Nova Scotia process follows a set order of steps from initial offer through ownership transfer.

First, a realtor or lawyer prepares the Agreement of Purchase and Sale, which sets out the terms the buyer is offering. The offer is then delivered to the seller for review.

The seller can accept, reject, or make a counteroffer. This stage may involve several rounds of negotiation until both parties agree on all terms. Once both parties sign the final version, the agreement becomes legally binding.

Next, buyers and sellers work to satisfy any conditions in the agreement, such as obtaining financing or arranging inspections. Parties use Form 408 to confirm conditions have been met.

A lawyer examines the property's title in the land registry to confirm ownership and check for any liens or restrictions. As the closing date approaches, both parties sign the required transfer documents. On closing day, funds are transferred and keys are handed over.

Title Search and Migration Requirements

A lawyer plays a key role in confirming that the person selling a property is its true owner. Nova Scotia uses a land registration system to keep records of property ownership.

A title search reviews public records to confirm who technically owns the property and checks for any legal claims, such as unpaid taxes or liens. After the title search, the lawyer certifies that the seller is the legal owner.

Some properties were registered under an older deed system and require title migration to the current land registration system when sold. The responsibility for paying migration costs is usually decided in the Agreement of Purchase and Sale.

Property taxes and utility charges are divided between buyer and seller based on the closing date. An adjustment statement shows who pays what portion of each cost. Once the transaction completes, a new deed showing the buyer as owner is registered with the land registry office.

Costs and Taxes to Budget For

The purchase price is only one of several costs in a Nova Scotia real estate transaction. Both buyers and sellers have additional expenses beyond the property's price.

Buyers typically pay for the legal fees associated with title searches and mortgage paperwork, while sellers pay for deed preparation through their lawyer. The deed transfer tax applies when property ownership changes, with buyers paying this tax based on the purchase price.

Properties require migration fees if moving from the old deed system to the current land registration system. Registration fees also apply when transferring the deed to the new owner. The seller is responsible for covering the cost of a migration if it is required.

• Buyer costs: Home inspection fees, appraisal costs, legal fees, deed transfer tax
• Seller costs: Legal fees for deed preparation, migration (if applicable), real estate commissions (if applicable)
• Shared costs: Property tax adjustments, utility adjustments

Special Schedules For Different Property Types

Some real estate transactions require extra forms or special clauses depending on the property type.

For instance, condominium purchases use Form 402 as a required schedule. This schedule includes information about the condominium corporation's reserve fund and requires review of the building's bylaws and financial statements.

New construction purchases use Form 403, which includes warranty protection and construction completion timelines. The agreement outlines the procedures for handling delays and change orders, as well as upgrades.

Vacant land purchases involve Form 404, which addresses environmental assessments, the availability of municipal services, and legal access to roads. The schedule covers building permits and zoning approvals required for future development.

How Private Sales Differ From REALTOR® Transactions

A private purchase and sale agreement in Nova Scotia happens when a buyer purchases directly from the seller without using a REALTOR® or MLS listing. This process shifts responsibilities from real estate professionals to the parties involved.

In private sales, lawyers usually prepare the Agreement of Purchase and Sale rather than using standard NSREC forms. These agreements can be tailored to specific needs but may lack standardized protections.

The deposit is typically held in trust by a lawyer rather than a brokerage's trust account. Buyers and sellers negotiate directly without an agent as an intermediary, which makes each party responsible for communicating their terms and concerns.

Property disclosure becomes the seller's responsibility, although completing a Property Disclosure Statement is not mandatory unless agreed upon in the contract.

Why a Lawyer's Review Matters

Agreements of purchase and sale are legal contracts that contain technical language and have long-term consequences. Each clause affects the rights and obligations of both parties.

Lawyers can identify clauses that may favour one party more than typical, such as unusual payment terms or repair requirements. They can also spot hidden obligations, such as the buyer being asked to assume existing contracts or settle liens.

Standard forms cover most situations, but unique circumstances may require modifications. Lawyers can add protective clauses or customize terms for delayed closings or specific improvements the property needs.

The purchase process involves coordinating with banks and the Nova Scotia Land Registry. Lawyers assist with this process as well, and will confirm the agreement's terms align with the lender's requirements, as well as ensure the ownership transfer is properly recorded.

Move Forward With Confidence With LM Legal Solutions

LM Legal Solutions provides legal services for all aspects of real estate transactions throughout Nova Scotia. We have experience with residential homes, condominiums, new builds, and vacant land purchases.

Speak With a Real Estate Lawyer

Speak With a Real Estate Lawyer

Our team focuses on clear communication and considers each client's unique circumstances. Located in downtown Dartmouth, we serve clients throughout the Halifax Regional Municipality and the province of Nova Scotia.

A legal consultation can address your questions about agreements of purchase and sale or the closing process. Book a consultation with one of our lawyers.

FAQs About Agreements Of Purchase And Sale In Nova Scotia

Does an agreement of purchase and sale need to be notarized in Nova Scotia?

No, notarization is not required for an agreement of purchase and sale to be legally binding in Nova Scotia. The contract only requires both parties to sign it in writing to be enforceable under provincial law.

Who drafts the agreement of purchase and sale in a private sale without realtors?

In private sales, a lawyer for either the buyer or seller typically drafts the agreement. Engaging a lawyer during this process helps ensure the contract contains necessary legal terms to protect both parties' interests.

Are electronic signatures valid on Nova Scotia real estate purchase agreements?

Electronic signatures are generally accepted on real estate agreements so long as both parties agree to sign electronically. However, lenders or registry offices may still require original handwritten signatures for certain documents.

Title Insurance Nova Scotia: What Every Homebuyer Should Know

Purchasing residential property in Nova Scotia often involves new terms and concepts. One of the most important is "title." Understanding title is key to understanding title insurance, which is a common part of real estate transactions in this province.

Many first-time homebuyers hear about title insurance from their real estate lawyer, lender, or real estate agent. Title insurance relates directly to the legal ownership of the property you are purchasing.

Before learning about title insurance, it is helpful to know what "title" actually means in the context of real estate, which we describe in greater detail below.

• What Is Title?
• What Is Title Insurance?
• Is Title Insurance Mandatory in Nova Scotia?
• What Title Insurance Covers for Nova Scotia Buyers
• Common Exclusions to Know Before You Buy
• Title Insurance Cost in Nova Scotia
• Lender Policy vs. Owner Policy
• How Title Fraud Happens and How Insurance Helps
• Risks in Nova Scotia That Make Coverage Valuable
• Why a Lawyer's Opinion on Title Still Matters
• Next Steps for Peace of Mind on Your Closing Day
• FAQs About Title Insurance Nova Scotia

What Is Title?

Title is the legal term for the right to own and control a property. Having title to a property means having the full legal right to use, sell, mortgage, or transfer that property.

A deed is the document that transfers title from one property owner to another. Title, however, is broader than just the deed—it includes all legal rights and interests attached to the property, such as the right to occupy, lease, or make changes to the land or buildings.

In Nova Scotia, a clear title confirms that there are no claims, liens, or disputes affecting the owner's rights to the property.

What Is Title Insurance?

Title insurance is a type of insurance policy that protects property owners and lenders against hidden problems with the ownership, or "title," of a property that existed before the date the insurance was purchased.

This insurance covers issues from the past, such as mistakes in public records, old unpaid debts attached to the property, or claims that someone else owns part of the property. It does not cover events or problems that happen after the policy is in place.

Key difference from other insurance: Title insurance provides backward-looking coverage for problems that already exist but haven't been discovered yet. Regular home insurance covers future events that might happen.

Is Title Insurance Mandatory in Nova Scotia?

Title insurance is not legally required when buying property in Nova Scotia. However, most mortgage lenders require buyers to have title insurance before they will provide financing.

It has become standard practice in most real estate transactions for title insurance to be included. Even when a buyer is not borrowing from a lender, many lawyers recommend title insurance as part of the closing process.

What Title Insurance Covers for Nova Scotia Buyers

Title insurance in Nova Scotia covers specific risks that relate to the ownership and legal status of a property. The policy addresses issues that existed before the purchase but were not discovered during the buying process.

Common coverage areas include:

• Unknown liens: If the previous owners have unpaid debts (such as property taxes, contractor bills, or utility charges), these outstanding items could become the new owner's responsibility
• Boundary or survey errors: Pre-existing mistakes in property lines, measurements, or legal descriptions can lead to title disputes with neighbours
• Unregistered easements or encroachments: Situations where a neighbour's structure crosses onto the property or where utility access rights aren't shown in public records
• Title fraud and forgery: Protection if someone falsely claims ownership of the property or if documents affecting the property's title have been forged
• Zoning or permit violations: Coverage when previous owners made changes to the property without the required permits or if the property doesn't meet zoning rules

Common Exclusions to Know Before You Buy

Title insurance policies in Nova Scotia have exclusions—specific situations or problems that the policy does not cover.

Standard exclusions to title insurance include:

• Known title defects: If a problem with the property's title is found and disclosed before the purchase, title insurance will not cover that issue
• Environmental issues: Problems such as soil contamination, hazardous materials, or environmental cleanup costs
• Indigenous land claims: Claims by Indigenous groups regarding land rights
• Matters not in public records: Issues that aren't discoverable through a standard title search, such as unrecorded liens or private agreements

Title Insurance Cost in Nova Scotia

Title insurance in Nova Scotia is paid for with a single payment at the time of purchase or refinancing. The cost typically ranges from $250 to $500, depending on the property value and type of policy.

Once paid, the policy remains in effect for as long as the owner has an interest in the property. There are no annual fees or renewal charges for this coverage.

Lender Policy vs. Owner Policy

Title insurance policies in Nova Scotia come in two types, each serving a different purpose:

Policy Type	Who It Protects	Coverage Amount	When Required
Lender policy	The mortgage company/lender	Up to the mortgage amount	Usually required by lenders
Owner policy	The property owner	Up to the purchase price	Optional for buyers (but highly recommended)

A lender policy protects the financial institution that provides the mortgage, and its coverage ends when the mortgage is paid off. An owner policy protects the homebuyer for as long as they own the property.

How Title Fraud Happens and How Insurance Helps

Title fraud is a risk in Nova Scotia real estate. It involves someone using deception or forged documents to interfere with the legal ownership of a property.

Common fraud schemes include:

• Identity theft scams: Criminals use stolen personal information to pose as the property owner and sell or mortgage the property without the real owner's knowledge
• Fake discharges or mortgages: Forged documents claiming a mortgage has been paid off when it hasn't, or registering fraudulent new mortgages
• House-stealing schemes: Complete property transfer through identity theft and forged documents

Title insurance covers financial losses and legal costs if fraud results in problems with property ownership. The title insurance company works to defend the interests of the true owner and to restore their legal title.

Risks in Nova Scotia That Make Coverage Valuable

There are several risks specific to Nova Scotia that make title insurance particularly valuable to property owners:

• Proximity to coastline: The proximity of your property to Nova Scotia's coastline can pose unique challenges. For instance, coastal erosion and storm damage can change property boundaries over time. Disputes sometimes occur regarding ownership of wharves, docks, or other waterfront structures.

• Private road access rights: Rural parts of Nova Scotia often include properties accessed by private or shared roads. The legal right to use these roads may not be clearly recorded, which creates uncertainty about property access.

• Historic deed gaps: Some properties have ownership records going back many years. Older properties may have missing, incomplete, or unclear documentation that can result in questions about legal ownership or boundaries.

Why a Lawyer's Opinion on Title Still Matters

Title insurance protects against certain risks that existed before the property was bought. However, it does not replace a lawyer's review of the title.

Namely, a lawyer conducts a detailed review of the property's title—first by searching public records and checking for anything that could affect ownership or use of the property. This review can identify problems such as liens, easements, or restrictive covenants that may not be covered by insurance.

LM Legal Solutions handles real estate transactions by reviewing title documents, explaining findings to buyers, and addressing any defects or issues that appear in the title search. This process helps clarify what title insurance covers and what it does not.

Next Steps for Peace of Mind on Your Closing Day

Title insurance in Nova Scotia addresses ownership risks that may not be obvious when buying a property. It protects against issues like unknown liens, boundary mistakes, and title fraud, but it does not cover every possible problem.

In Nova Scotia, title insurance is not a legal requirement, but lenders often require it for mortgage approval. Homebuyers can choose between a lender policy and an owner policy, or choose to purchase both.

Speak With a Real Estate Lawyer

Speak With a Real Estate Lawyer

A real estate lawyer reviews the title, explains what is covered by insurance, and addresses all issues before closing. To discuss the specifics of title insurance for your situation, contact LM Legal Solutions.

FAQs About Title Insurance Nova Scotia

Can I cancel my title insurance policy and get a refund?

Title insurance cannot be cancelled after it is issued because the policy covers events that happened before the date it was purchased.

Does title insurance cover condominiums differently than houses?

Title insurance for condominiums provides protection for the individual unit, such as issues with the unit's title or boundaries. Problems involving shared areas managed by the condominium corporation are not covered.

What happens if I discover a title problem after buying my home?

If you have title insurance and discover a covered problem, the first step is to contact the insurance company's claims department. They will investigate the issue and may cover legal costs or financial losses according to your policy terms.

Do I need both a survey and title insurance when buying property?

A survey shows exact property boundaries at a specific point in time, while title insurance provides ongoing protection against various title-related risks. Many buyers choose to obtain title insurance instead of ordering a new survey, as most lenders accept title insurance as an alternative.

A Real Estate Lawyer’s 2025 Guide to Purchasing Property in Nova Scotia

Purchasing real estate is an exciting endeavor, but it's crucial to understand the legal landscape to navigate the process smoothly. From understanding property rights to ensuring a clear title a Nova Scotia Real Estate Lawyer will play an important role in protecting your interests as a buyer. In this brief overview, we'll highlight some of the essential legal considerations when purchasing property in Nova Scotia, including:

• The Agreement of Purchase and Sale

• Due Diligence

• Title Insurance

• Closing Process

The Agreement of Purchase and Sale

The foundation of any real estate transaction is the contractual agreement between the buyer and seller. In Nova Scotia, offers to purchase are typically presented using standard forms provided by the Nova Scotia Real Estate Commission. Your Realtor will assist you in negotiating the terms of the Agreement and preparing the appropriate documents.  These agreements outline key terms such as the purchase price, deposit amount, closing date, and any conditions that must be met before the sale can proceed. It's crucial to review these agreements carefully and seek legal advice if needed to ensure your interests are protected.  The real estate lawyer review condition gives your lawyer time to review the contract and ensure your interests are protected.

For a detailed breakdown of what an Agreement of Purchase and Sale in Nova Scotia includes, read our full guide to Agreements of Purchase and Sale.

Due Diligence

Conducting due diligence is a critical step in the real estate purchasing process, allowing buyers to uncover any potential issues or risks associated with the property. This may include obtaining a property survey to verify boundaries, conducting a title search to ensure clear ownership, and inspecting the property for structural defects or environmental concerns. Working with a qualified real estate lawyer can help ensure that due diligence surrounding title is completed thoroughly and effectively. When reviewing title, your lawyer will be looking for things such as liens, easements effecting the property or restrictive covenants that could impact your intended use of the property.  You will work with other professionals such as your mortgage broker and home inspector to ensure other conditions are satisfied. 

Title Insurance

Title insurance provides protection against losses arising from defects in the title of the property. Obtaining title insurance is a common practice to safeguard against risks such as unknown liens, encroachments, or legal disputes. While title insurance is not mandatory, it offers peace of mind to both buyers and lenders by providing financial protection against unforeseen title issues that may arise after the purchase.

For a detailed breakdown of what title insurance covers, common exclusions, costs, and risks specific to Nova Scotia, read our full guide to Title Insurance Nova Scotia.

Closing Process

The closing process is the final step in completing your real estate transaction. On closing day, funds are exchanged, and legal ownership of the property is transferred from the seller to the buyer. Your real estate lawyer will oversee the closing process, ensuring that all legal requirements are met, and facilitating the transfer of keys and possession of the property. It's essential to be prepared for closing costs, which may include legal fees, land transfer taxes, and other miscellaneous expenses.

Navigating the legal aspects of purchasing real estate in Nova Scotia requires diligence, attention to detail, and expert guidance. By understanding property rights, reviewing contractual agreements, conducting due diligence, obtaining title insurance, and completing the closing process, buyers can confidently navigate the complexities of the real estate market. 

Speak With a Real Estate Lawyer

Speak With a Real Estate Lawyer

With the guidance of our experienced real estate practitioner, Jennifer Chiasson at LM Legal Solutions, you can rest assured that the process of purchasing property in Nova Scotia can be a rewarding and fulfilling experience for all parties involved. Book an initial consultation below or call 902-466-2200 to talk to our real estate lawyers about all your residential and commercial real estate needs.

Everything You Should Know About a Will, Personal Directive and Power of Attorney

At LM Legal Solutions, we understand that life is full of uncertainties, and one of the best ways to protect your loved ones and your assets is through proper estate planning. Today, we'd like to explain, in simple terms, why having a Will, a Personal Directive and a Power of Attorney is crucial. We will be covering:

• What Is a Will?

• Understanding The Role of Power of Attorney in Managing Your Affairs

• How a Personal Medical Directive Can Guide Your Healthcare Decisions

What Is a Will?

A Will is a legal document that allows you to appoint a person or people who will manage your estate and specify how your assets should be distributed after you pass away, thus protecting your wishes. Without a Will, the province’s laws dictate the distribution of your assets, which may not align with your wishes. By creating a Will, you can ensure your loved ones are taken care of financially, appoint a guardian for minor children, and leave a lasting legacy by supporting causes that are important to you, while also considering how your enduring power attorney will take effect.  Having a Will prepared by an experienced estate planning lawyer can help minimize disputes among beneficiaries and ensure your wishes are honoured.

Understanding The Role of Power of Attorney in Managing Your Affairs

A Power of Attorney is a document that designates someone to make financial and legal decisions on your behalf if you become unable to do so. A Power of Attorney has become an essential tool in today’s world.  A Power of Attorney allows you to appoint an individual that you trust to ensure your affairs are managed as you age.  This will help ensure your bills, taxes and investments are managed effectively and in your best interests and avoid costly court proceedings to appoint a guardian in the event of your incapacity.

How a Personal Medical Directive Can Guide Your Healthcare Decisions

A Personal Medical Directive, also known as a Living Will or Advance Healthcare Directive, allows you to outline your medical preferences if you can't make these decisions for yourself. This document, known as a Power of Attorney, allows someone to make decisions on your behalf regarding financial matters if you become incapacitated. This helps doctors and family members understand your treatment choices and gives you control over life-sustaining medical procedures. Having a Medical Directive in place can relieve your loved ones from having to make difficult decisions during a difficult time.

Contact Us for Personalized Estate Planning

By having a Will, Power of Attorney, and Personal Medical Directive in place, you can take control of your future and provide your family with peace of mind. At LM Legal Solutions, our experienced estate planning attorneys are here to assist you in creating these essential documents, such as your Will, personal directive and power of attorney customized to your unique circumstances.

To get started or review your existing estate plan, please contact us at 902-466-2200, email jennifer@lmlegalsolutions.ca or submit the contact form below. We are committed to making the estate planning process as easy and stress-free as possible.

The Intersection Between Family and Estate Law

Family and estate law often overlap as parents and spouses begin to plan for their future. A Will is a document that outlines how you wish to distribute your property after your death. A Will does not affect your assets until death and can only distribute what a person owns at death.

A Will can also provide guidance on how you want any children under the age of majority to be cared for. Wills are very important instruments to have for setting out your affairs and making sure your family is protected. We will be covering:

• Impact of Family Changes on Wills

• Legal Effects of Divorce and Marriage on Wills 

• Marital Changes and Your Will 

Impact of Family Changes on Wills

There are many ways in which a Will can intersect with family law. The first, and likely most important, is how it can affect the custody of your children if you pass away before they reach the age of majority. This can become particularly complex if you are divorced or separated and do not want the other parent to assume custody of your children on your death. Appointing a guardian for your children in your Will is not legally binding, and can be challenged by the other parent, or another family member. It will be important for you to consult with a lawyer experienced in Wills and estates on this issue, given the impact your divorce documents and the law has on your wishes.

Legal Effects of Divorce and Marriage on Wills

 

Wills are also impacted by a separation or divorce. Wills are not changed because you separate and if you have appointed your former spouse as your Executor, that does not change until you change your Will. Separation Agreements can include clauses that require you to name the other spouse on life insurance or other benefits and you must provide both your lawyer and your employer with the details of your Agreement as it can alter issues of pensions and ownership of assets. It is important to discuss any changes to your family, including Court orders and Separation Agreements with a lawyer experienced in the area of wills and estates.

Even a divorce does not void a Will. Following a divorce, if a new Will was not created, the old Will survives, and the Courts then treat the former spouse as if they died before you so they do not inherit twice. This would mean that the old Will is still valid but if the former spouse was appointed executor, they would not be able to act and the alternate executor would step in. Also, any gifts to the former spouse would not happen.

Marital Changes and Your Will

Marriage can also alter a Will. Generally speaking, your Will is revoked upon marriage under the Wills Act. One exception to this is if your Will is made in contemplation of marriage and states that you are making a Will because you intend to marry your soon-to-be spouse, who must be named.

Accordingly, whether you are contemplating marriage, separation, or planning for your children’s future, it is important to remember that you need to review your estate plans as they will be impacted by these decisions.

Consult with LM Legal Solutions Estate Lawyers

The knowledgeable team at LM Legal Solutions is equipped to help you navigate the complexities of family and estate law. With our dedicated expertise in these areas, we are committed to providing you with the guidance you need to make informed decisions about your future. We encourage you to reach out for a personalized consultation to discuss how we can assist with your specific legal needs in family and estate law.

For more information, complete the form below:

Jennifer Chiasson Joins Lenehan Musgrave LLP

Lenehan Musgrave Law is excited to announce that Jennifer Chiasson has joined the firm as our newest Associate Lawyer as of April 2024. Jennifer brings more than 10 years of general practice experience in the areas of family law, small business, real estate, and estate planning.

Jennifer is a practicing member of the Nova Scotia Barristers’ Society, as well as a member of the Canadian Bar Association, and the Real Estate Lawyers Association of Nova Scotia.

Her diverse practice experience expands Lenehan Musgrave’s overall service offerings to additional areas that complement our existing Family Law services.

You can reach Jennifer at (902) 466-2200 or at jennifer@lenehanmusgravelaw.ca

View Jennifer’s BIO