Transaction Levy

The LIP insurance premium and the Transaction Levy are both fees charged by the LIP to practicing insured lawyers. Unlike the insurance premium, however, the Transaction Levy is required to be paid by lawyers only when they engage in litigation, personal property or real estate transactions.  Rule 10.04 of the Law Society Rules explain about how the required Transaction Levy fee is to be applied as well as exemptions. A Transaction Levy Summary Form, Form 10 04A, as well as accumulated levy monies, are to be remitted on a quarterly basis to the Insurance and Risk Manager.

The Transaction Levy was implemented in 2005 to assist in the proper funding of the LIP. The insurance premiums paid each year by practicing lawyers together with the Transaction Levy monies provide the solid financial base upon which the LIP operates. Money accumulated from Transaction Levy fees may be used also for loss prevention activities carried out by the Law Society in the public interest.

The following Guidelines may assist members:

In a Real Estate Transaction you are acting for:
Number of Levys
Vendor and obtaining release of mortgage and/or deed of confirmation or rectification and/or title insurance one
Two or more vendors holding title in either joint tenancy or tenancyin common one
Vendor who sells real property and chattels in same transaction one
Purchaser who obtains mortgage and you act for mortgagee also one
Purchaser who obtains title insurance and you act for title insurer one
Purchaser who mortgages additional property at same time two
Two or more purchasers holding title together in any capacity one
Both vendor and purchaser in one transaction two
Mortgagor in refinancing or increasing amount of mortgage none
Mortgagor in changing terms of mortgage (except amount borrowed) none
Mortgagor in obtaining release of mortgage only one
Mortgagee or title insurer on one property only one
Mortgagee in transfer of mortgage –either party one
Grantor in quit claim deed or deed of confirmation one
Grantee in acquiring title or interest in land from Crown none
Lessor or lessee in lease of residential or commercial property one
Any one party in deed “as to form only” one
Any party as above but only witnessing signature of that party none
Filing a lis pendens only none
Yourself as a party in any of the above situations as above
A Band Council dealing with land (as if a municipality) none

 

In a Personal Property Transaction you are acting for:
Number of Levys
Vendor who sells chattels not combined with a real estate transaction one
One or more vendors who sell shares one
Purchaser who buys chattels not combined with a real estate transaction one
One or more purchasers who buy shares one
Assignor of intellectual property rights one
Licensor or licensee of intellectual property rights none
Any party as above but only witnessing signature of that party none
Yourself as a party in any of the above situations as above

 

In a Civil Litigation Transaction, you are acting for:
Number of Levys
One or more plaintiffs/applicants/petitioners in any one action one
One or more defendants/respondents in any one action one
Any party in an existing action who is joining a new party to that action none
Any existing party who is third partied or counterclaimed against in anexisting action none
Any new party joined to an existing action in any way one
Applicant in quieting of titles in conjunction with real estate transaction two
Adverse claimant in quieting of titles application one
Any party when appointed by the court to act for that party none
As a new solicitor acting for any party following a change of solicitors none
As a new solicitor in existing action after party has commenced/defendedon their own none
Providing independent legal advice only to any party none
For a mechanic’s lien claimant, but only on commencing the action one
On filing a Caveat only at the Estates Office none
For any party in the Court of Appeal on an action commenced in the trial division none
On filing a separation agreement for enforcement purposes only none
Yourself in the taxation and enforcement of your own fee account none
Yourself as a party in any capacity in a civil litigation transaction as above