Reminder: Trust Conditions Must Not Contradict Existing Real Estate Agreements 

The Law Society has noted an increase in inquiries regarding lawyers imposing trust conditions in residential real estate matters that contradict the agreement reached between the parties. In some cases, the lawyer representing the seller is requiring the buyer to provide cash to close in the form of a certified trust cheque. This condition is inconsistent with the standard Alberta Real Estate Association contract, which does not require the buyer to certify their trust cheque.  

Trust conditions serve as tools for lawyers to establish agreements between parties and lawyers should not use them to avoid delays with financial institutions or to avoid incurring additional costs on behalf of their clients. Conflicting trust conditions violate the Code of Conduct (see commentary to Rule 7.2-14), put the entire transaction at risk and undermine the trust that parties have in the legal system. 

If a trust condition imposed on a lawyer is inconsistent with the terms of the parties’ agreement, then that lawyer must immediately: 

• reach an agreement with the entrustor to amend or clarify the trust conditions; or  
• return the entrusted property to the entrustor. 

If both lawyers agree, disputes concerning trust conditions may be discussed in an informal, non-binding mediation session with the Practice Advisors. The Practice Advisors may request that both lawyers submit a summary of the issue(s) and barriers to resolution. 

For more information on best practices when issuing trust cheques, please refer to our previous eBulletin. For more information on the Practice Advisors and their role, visit our website.

Applications for the Viscount Bennett Scholarship Now Open 

The Right Honourable Viscount Bennett, PC, KC, LLD, DCL, sought to encourage a high standard of legal education, training and excellence. In 1943, he established a trust fund with 100 shares of Royal Bank stock, valued at $100 per share. The value has increased significantly, allowing the Viscount Scholarship Selection Committee (Committee) to award up to three scholarships annually. 

Award 

An award of up to $20,000 may be paid annually to provide for post-graduate studies in an institution of higher learning, in common law, approved by the Committee. If, in the opinion of the Committee, no suitable application is received, no award will be made. Up to three awards may be made annually if, in the opinion of the Committee, there is justification based on the eligibility requirements. 

Eligibility 

Applicants must be law graduates or members of the Law Society of Alberta, ordinarily resident in, or if not presently resident in, then with an express intention to return to Alberta. Awards will be made by the Committee based primarily on the academic excellence displayed by the applicant in both university and law school. The Committee may also have regard for the applicant’s: 

• degree of involvement in law school, university, community and legal affairs; 
• financial need; and 
• other scholarships or awards. 

Application 

Applications are to be sent to Elizabeth J. Osler, KC, Chief Executive Officer and Executive Director of the Law Society of Alberta via courier or email by May 1, 2024. Find out more information about the scholarship and application process in this guide or on the University of Alberta website. 

Note: Electronically submitted references and transcripts must be sent directly from the reference or university. These documents will not be accepted if the applicant submits them on behalf of another person or institution. 

Alberta Law Reform Institute: Alteration and Revocation of Electronic Wills 

The Alberta Law Reform Institute (ALRI) is making recommendations for how people can alter or revoke their electronic wills in Alberta. ALRI’s full report, Alteration and Revocation of Electronic Wills, Final Report 120, is now available. 

People are increasingly using digital tools to manage their personal affairs. In some jurisdictions, wills are no longer restricted to paper and individuals are beginning to execute their testamentary documents electronically. In Alberta, the Wills and Succession Act governs the creation of wills but does not address wills created using electronic means. This leads to a lack of clarity for lawyers, estate professionals and the public. Learn more about the need for reform and what the ALRI is recommending on our website. 

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