Mortgages Held in Trust

If the mortgage is not registered in my name or in the name of a lawyer in my firm in trust for clients, is it necessary to keep mortgage asset and liability ledgers?
Should a mortgage be recorded in the mortgage asset and liability ledgers where it is not registered in the name of the lawyer in trust but the lawyer receives and distributes the periodic mortgage payments?
What are the record keeping requirements if a lawyer holds a mortgage in trust for a client?



Q: If the mortgage is not registered in my name or in the name of a lawyer in my firm in trust for clients, is it necessary to keep mortgage asset and liability ledgers?

A: No. If the mortgage is not registered in your name or in the name of a lawyer in your firm, it is not considered to be within the scope of section 20 of By-Law 9 and thus, mortgage asset ledgers and mortgage liability ledgers are not required.


 Q: Should a mortgage be recorded in the mortgage asset and liability ledgers where it is not registered in the name of the lawyer in trust but the lawyer receives and distributes the periodic mortgage payments?

A: No. Since the mortgage is not registered in the lawyer's name in trust it is not considered to be within the scope of section 20 of By-Law 9 and thus, it need not be recorded in a mortgage asset and liability ledgers.


 Q: What are the record keeping requirements if a lawyer holds a mortgage in trust for a client?

A: Sections 20 and 24 of By-Law 9 require a lawyer holding a mortgage in trust for a client to maintain the records listed below.

  1. Mortgage asset ledger [section 20(1)]
  2. Mortgage liability ledger [section 20(2)]
  3. Monthly comparison of the mortgage asset ledger and the mortgage liability ledger [section 20(3)]
  4. Form 9D [section 24(1)(a)]
  5. Form 9E (or a reporting letter containing a response to every question on Form 9D) [section 24(1)(a)]
  6. Declaration of trust [section 24(1)(c)]
  7. Copy of the charge [section 24(1)(d)]
  8. Supporting documentation supplied by the lender [section 24(1)(e)]

These records are in addition to the financial records required by section 18 of By-Law 9.