An undertaking is a promise made by a solicitor upon which the recipient is entitled to rely, and depending on the circumstances, which binds the solicitor or solicitor’s clients or both. Undertakings are obligations that lawyers pledge themselves or their clients to honour.
An example in Real Estate could be as follows:
Let’s say the home you are selling is due to close and the buyers’ lawyer discovers that there is an old line of credit registered against the title of your home.
Title cannot pass to the new buyers until the lien is discharged.
The lien will be discharged, it is nothing more than an administrative issue, however, the bank may take longer to complete it than the amount of time left before the closing date.
This is where a Solicitor’s Undertaking comes in.
Your lawyer may provide an undertaking stating that the lien will be discharged, thereby allowing the property to close on schedule, with that one final item being completed over the course of the next few days.
A lawyer who gives an undertaking must have as his/her goal the successful completion of the deal for the benefit of the clients. Lawyers must take the fulfillment of undertakings very seriously.
The need for an undertaking may not be too common, but if the home you are buying/selling is about to close, you are already stressed enough and it is good to know this option may be able to prevent the delay your closing date.
Seek the advice of your lawyer!
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