Members to Pay Less Despite Fee Increasesby Peter Michalyshyn, QC, Chair, Finance Committee | ||
 The Benchers have approved increases to the Law Society’s annual fee and Assurance Fund levy effective March 15, 2007. The increases, when combined with lower insurance levies announced earlier this year (May, 2006 Benchers’ Advisory), will see Law Society members paying slightly less overall in the coming year to carry on active practice in Alberta. Lawyers’ annual fees will increase 5.3 per cent to $1,095 plus GST in 2006/2007 from the current fee of $1,040 plus GST. The increase reflects expected inflation and increased staffing costs. Even with the fee increase, the Law Society’s 2007 operating budget of $12.68 million projects an approximate deficit of $384,000. The current accumulated surplus will cover this expected deficit. On the Assurance Fund side, the 2007 increase is 49 per cent to $635 plus GST from $425 plus GST. That increase is explained again in part by inflation and increased staffing costs. However, the single biggest factor in the rise in the Assurance Fund levy is the cost of insuring against potential large defalcations which is expected to rise dramatically in the coming year. The General Fund (the operating fund) The General Fund is supported by members’ annual fees and covers the general operating costs of the regulatory function and other work of the Law Society. Aside from the impact of inflation on existing programs and personnel, budget increases in 2007 |
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will pay for approximately six new positions, mostly in the complaints, investigations, and audit departments. This is in keeping with priorities established by the Benchers to support a culture of compliance in the Law Society. Budget 2007 also envisions spending on other existing and emerging priorities, including continuing professional development and risk assessment. The Assurance Fund (the defalcation fund) The Assurance Fund budget of $5 million is supported entirely by members’ levies. Operations include the Law Society’s loss prevention audit program, including the cost of custodianships when lawyers are suspended or disbarred. Costs also include the increasing expense of bond or other coverage for potentially catastrophic claims. In addition to operations, the Assurance Fund has budgeted $1.5 million in 2007 to cover the compensation of clients and others from whom lawyers steal trust monies or other property. That $1.5 million is supported by investment income and potential gains from investments from the Assurance Fund itself. Any claims payable above the $1.5 million mark may be directed to the bond or other coverage available in 2006/07. The annual fee and the Assurance Fund levy are due March 15. The fee and the levy may be paid by cash, cheque, telephone or internet banking. Invoices will be mailed by mid-February. The budget can be found on the LSA website at www.lawsocietyalberta.com. Questions concerning the budget should be directed to either Peggy Stevenson, CA at peggy.stevenson@lawsocietyalberta.com or Peter Michalyshyn, Q.C.at peterm@chatwin.ab.ca.  |
Does a developer have to hold purchase monies in trust?
Yes! Section 14(3) of the Condominium Property Act reads as follows:
- 14 (3) A developer shall hold in trust all money, other than rents or security deposits, paid by the purchaser of a unit up to the time that the certificate of title to the unit is issued in the name of the purchaser in accordance with the purchase agreement.
If you are wondering whether a devel-oper’s lawyer has a duty to hold the monies in trust, read section 14(1)(c):
- (c)“developer” includes any person who, on behalf of a developer, acts in respect of the sale of a unit or a proposed unit or receives money paid by or on behalf of a purchaser of a unit or a proposed unit pursuant to a purchase agreement.
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