These questions come from our bank but are not in any of our paid exams. Try each one, then reveal the answer and the explanation.
Question 1
Owen Fitzgerald is buying a house in Barrie. While you review the options for assuring title, he asks about TitlePLUS, the title insurance product of the Lawyers' Professional Indemnity Company (LawPRO). If you discuss TitlePLUS with him, the Rules of Professional Conduct require you to:
A.fully disclose the relationship between the legal profession, the Law Society and LawPRO.
B.tell him that TitlePLUS is the only policy that a lawyer in Ontario may recommend.
C.disclose any premium rebate LawPRO pays you and obtain his written consent to it.
D.let your law clerk present the TitlePLUS premium options without your supervision.
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Answer: A. fully disclose the relationship between the legal profession, the Law Society and LawPRO.
Rule 3.2-9.7 of the Rules of Professional Conduct requires you, if you discuss TitlePLUS insurance with a client, to fully disclose the relationship between the legal profession, the Law Society and LawPRO. (B) Rule 3.2-9.4 requires you to assess all reasonable options to assure title; nothing limits you to one insurer's product. (C) Rule 3.2-9.5 forbids receiving any compensation, directly or indirectly, from a title insurer for recommending its product, so disclosure and consent cannot make a rebate acceptable. (D) Rule 6.1-6.1(b) bars you from permitting a non-lawyer to present insurance options or premium information to a client without supervision.
Question 2
Blackwood Holdings Inc. owns a three-storey office building in Barrie on land that is not within a registered plan of subdivision. It has agreed to lease the entire second floor, together with ten parking spaces in the building's surface lot, to Kozak & Castillo LLP for 30 years. No consent under the Planning Act has been obtained. The lease:
A.is not prohibited by s. 50, because it grants the use of part of a building and ancillary land
B.contravenes s. 50, because it grants the use of part of the land for 21 years or more
C.needs a consent for the parking spaces only, because they are land outside the building
D.is valid only if the notice of lease registered on title contains the s. 50(22) statements
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Answer: A. is not prohibited by s. 50, because it grants the use of part of a building and ancillary land
Section 50(9) of the Planning Act provides that nothing in s. 50(3) or (5) prohibits an agreement granting the use of or right in part of a building or structure, including the use of or right in lands ancillary to that part, for any period of years. A 30-year lease of a floor with parking for its occupants falls within that exception, so no consent is needed. (B) The 21-year limit in s. 50(3) governs leases of part of a parcel of land, not of part of a building. (C) Section 50(9) extends to land whose use is ancillary to the leased part, which covers the parking spaces. (D) The s. 50(22) statements apply to a deed or transfer and play no part in a lease that s. 50(9) already permits.
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