H.W.O. Doyle, LL.B., LL.M.

City Solicitor

Legal Services

55 John Street

Stn.1260, 26th Flr., Metro Hall

Toronto ON M5V 3C6

Tel: (416) 392-8047

Fax: (416) 397-5624

August 21, 1998

To:Corporate Services Committee

From:City Solicitor

Subject:Fees for Real Estate Documents and Services Provided for by the City Solicitor

Purpose:

To recommend appropriate charges for documents and services provided by the City Solicitor to outside law firms, individuals and organizations.

Funding Sources, Financial Implications and Impact Statement:

Some revenue will be generated.

Recommendations:

It is recommended that:

(1)the fee schedule as set out in Appendix 1 to this report be approved, effective as of the date of council;

(2)the fees collected from the provision of the services identified in Appendix 1 be allocated to the Legal Department budget;

(3)the City Solicitor be authorized to waive, or reduce any fees, as set out in Appendix 1, in exceptional circumstances or situations of financial hardship;

(4)this authority supersede and replace any authorities, by-laws, policies or procedures of the seven former municipalities that relate to the charging of these types of fees for documents or services provided by the Solicitor; and

(5)the appropriate City officials be authorized to take the necessary action to give effect thereto.

Background:

Previously, the practices of the former seven "old" municipalities varied as to whether fees were charged for documents and services provided by the legal departments to law firms, individuals, and other organizations, including:

(a)preparation of encroachment agreements;

(b)written responses to compliance requests; and,

(c)various other documents or services, leases, licences and other agreements, or amendments.

In addition, even where there was uniformity as to the fact of imposing such charges, the amount in question varied among the seven municipalities. As a result, a replacement authorization is required for uniform application across the new city.

Encroachment Agreements:

After comparing the practices of the amalgamated cities, as well as some of the surrounding GTA municipalities, and reviewing the actual costs in preparing encroachment agreements, carrying out title searches, reviewing relevant legal documents, and drafting and finalizing encroachment agreements, it is recommended that the fee for legal services to prepare and register encroachment agreements be a flat fee of $350.00, (not including the actual Registry Office fee, also the responsibility of the applicant) for all types of properties, and that the Solicitor be authorized to waive the required fees where the encroachment(s) has been caused by a road widening or other municipal undertaking.

Compliance Letters:

A large number of requests are received by the Legal Department, from outside parties, inquiring as to whether easements or other types of agreements are "in good standing" (usually as a result of a proposed transfer or refinancing). The preparation of the response involves a file review, and analysis of the instrument in question, obtaining updated information from the Operating Department involved concerning the specific agreement, and ultimately, preparing a letter informing the inquirer as to whether or not there is compliance and/or whether the City is prepared to release the agreement.

Leases, Licences, Consents and Other Real Estate Documents:

In addition, there are various other services performed by the legal department as a result of the desires of third parties to enter into or consider entering into documentation and/or to re-organize itself or its affairs. The following is a list of activities for which the Department recommends that an administration fee, on a cost recovery basis, as set out in Appendix 1, be approved.

(a)preparation of a lease or lease renewal agreement;

(b)lease amending agreement;

(c)consent to security documents or refinancing;

(d)consent to assignment or sublet of a lease;

(e)production of an estoppel certificate;

(f)requests to expedite the execution of a consent and a waiver of notice;

(g)consent to document registration;

(h)surrender, discharge, termination or release documentation;

(i)consent to Applications for First Registration in Land Titles; and

(j)due diligence requests made by potential purchasers of property.

Comments

It is recommended that authorization be granted to charge fees for legal documents and services as set out in Appendix 1 attached hereto, effective as of the date of council adoption.

Contact Name: Margaret Fischer-tel: 392-8054

H.W.O.Doyle

City Solicitor

Appendix 1

ServiceApplicable Fee*

Encroachment Agreements $350.00 plus disbursements

Compliance Request$100.00 per property

Preparation of Nominal Sum Lease$300.00

Renewal of Lease$200.00

Lease Amending Agreement$300.00

Surrender, Termination or Release documentation$100.00

Consent to Security Documents or a refinancing $300.00

Consent to Assignment or Sublet of lease$300.00

Production of an estoppel certificate under a lease$100.00

Consent to Applications for First Registration in Land Titles$100.00

Responding to due diligence requests made by$100.00

purchasers of property

Consent to document registration$ 50.00

* plus GST