Mitigation was carried out appropriately: V did seek interim financing; she was 71 year old lady In the circumstances, units were dropping fast and the common practice was to sell below FMV Closing / Completion Undertakings Enable complex transactions to occur based on integrity and professional standing lawyer’s What are Undertakings? Professional promise to do something based on a status in the legal profession lawyer’s Sanctity of undertakings are a cornerstone of the legal profession Used to simplify cumbersome and complex transactions in Real Estate Does not require explicit use of the to exists word “undertaking” Purpose: To deal with matters of process settle immediate logistics of exchange of docs, etc – To agree on how to return parties to the originally position if transaction fails Who Can Give and Release Undertakings? Only lawyers or notaries can give undertakings; staff can be found to have given undertaking on their behalf Can only be released by the person to whom it has been given Professional standards handbook: lawyers must report other lawyers who have breached obligations under their undertakings Professional Responsibility: Professional Conduct Handbook Chapter 11 Rule 7 Lawyer must not give an undertaking that cannot be fulfilled; must fulfill every undertaking; and must – scrupulously honour any trust condition once accepted Rule 7.1 Undertakings/trusts should be written/confirmed in writing and unambiguous in their terms – Lawyer who withdraws or authorizes the withdrawal of funds from a trust account by cheque, undertakes Rule 8 – that the cheque will be paid and is capable of being certified
Mitigation was carried out appropriately: V did seek interim financing; she was 71 year old lady In the circumstances, units were dropping fast and the common practice was to sell below FMV Closing / Completion Undertakings Enable complex transactions to occur based on lawyer’s integrity and professional standing What are Undertakings? Professional promise to do something based on a lawyer’s status in the legal profession Sanctity of undertakings are a cornerstone of the legal profession Used to simplify cumbersome and complex transactions in Real Estate Does not require explicit use of the word “undertaking” to exists Purpose: To deal with matters of process – settle immediate logistics of exchange of docs, etc To agree on how to return parties to the originally position if transaction fails Who Can Give and Release Undertakings? Only lawyers or notaries can give undertakings; staff can be found to have given undertaking on their behalf Can only be released by the person to whom it has been given Professional standards handbook: lawyers must report other lawyers who have breached obligations under their undertakings Professional Responsibility: Professional Conduct Handbook Chapter 11 Rule 7 – Lawyer must not give an undertaking that cannot be fulfilled; must fulfill every undertaking; and must scrupulously honour any trust condition once accepted Rule 7.1 – Undertakings/trusts should be written/confirmed in writing and unambiguous in their terms Rule 8 – Lawyer who withdraws or authorizes the withdrawal of funds from a trust account by cheque, undertakes that the cheque will be paid and is capable of being certified
Abdulla%20-%20LAW%20317%20-%20Final.docx