August 20, 2015

Reporting a mortgage discharge failure to the Law Society is mandatory

August 20, 2015

Lawyers are reminded of their obligation to report to the Law Society the failure of a mortgagee to provide a registrable discharge of mortgage within 60 days of the closing of any real property transaction (Law Society Rule 3-96(b)(i)).

Rule 3-96(b)(ii) also requires lawyers to report to the Law Society the failure of another lawyer or notary to provide satisfactory evidence of the filing of a registrable discharge of mortgage within the 60 day period.

In the rule, “mortgage” includes a registered mortgage, debenture or trust deed containing a fixed charge on land or an interest in land (Rule 3-95).

Report a mortgage discharge failure

What does the Law Society do with mortgage discharge failure reports?

As a result of the Martin Wirick case, the Benchers implemented the 60-day reporting requirement to reduce the possibility for fraud. The Law Society’s investigative analyst uses the information to determine whether there are situations that require Law Society intervention or investigation.

Failure to report as required under Rule 3-96 can lead to disciplinary action. For more information on reporting under Rule 3-96, contact Liza Szabo, Investigative Analyst at