IS IT POSSIBLE FOR THE SAME LAWYER IN ONTARIO TO REPRESENT BOTH THE BORROWER AND THE LENDER IN THE SAME TRANSACTION?
In Ontario, a lawyer cannot represent both a lender and borrower in a transaction unless the transaction falls under one of the exemptions provided in the Rules of Professional Conduct as set out by the Law Society of Ontario. For example, the Rules of Professional Conduct permit a lawyer to represent both a lender and borrower if the lender is an institutional lender; if the mortgage represents part of the purchase price in the sale of real property and the lender is the seller; if the lawyer practices law in a remote location where the parties cannot conveniently retain individual counsel for the transaction; if the mortgage or loan amount does not exceed $75,000.00; or if the lender and borrower are not at “arm’s length”, as defined in section 251 of the Income Tax Act.
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About the Author:
Shahriar Jahanshahi is the founder and principal lawyer at Jahanshahi Law Firm with a practice focus on representing business star-ups and investors in the province of Ontario. For further information about Shahriar Jahanshahi, click here.