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 Levies |
| 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 tenancy in 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 Levies |
| 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 Proceeding Transaction, you are acting for: | Number of Levies |
| 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 an existing 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/defended on 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 |