Real Estate
1.4 Conflict of Interest
In a transaction where a party is not represented by counsel, a lawyer should
- advise an unrepresented party that their interests are not being protected by the lawyer;
- advise the unrepresented party which party the lawyer is representing in the transaction;1
- recommend independent legal advice to the unrepresented party.
If a lawyer is acting for more than one party in a transaction, the Legal Ethics and Professional Conduct Handbook provisions on conflict of interest apply.
Note:
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This applies in particular if the unrepresented party might reasonably feel entitled to look to the lawyer for guidance and advice in respect of a transaction (see Commentary 7.1 Legal Ethics and Professional Conduct Handbook).
Additional Resources:
- Duty on lawyer to advise unrepresented party t target="_blank"hat their interests are not being protected: Hants County Business Development Centre Ltd. v. Poole et al. (1998), 172 N.S.R. (2d) 393 (N.S.C.A.), affirming (1997), 165 N.S.R. (2d) 393 per Kelly J.; Klingspon v. Ramsay, 1985 CanLII 548 (BC SC); Kwak v. Odishaw (1984), 59 B.C.L.R. 54 per Seaton J.A. (B.C.C.A.)
- Reliance of unrepresented party on the lawyer may result in a duty of care: Tracy v. Atkins (1979), 83 D.L.R. (3rd) 46 (B.S.C.S.), aff’d 105 D.L.R. (3rd) 632 (C.A.); Elliott v. Hossack, 1999 CanLII 6001 (BC SC); Paton v. Shaw, 1995 CanLII 2859 (PE SCTD)
- Legal Ethics and Professional Conduct Handbook, Chapter 6, Impartiality and Conflict of Interest Between Clients.
- Standard 1.5 - Documentation