You are working as a junior law clerk at the law firm of Michael, Eliad & Redford LLP, Barristers and Solicitors, 863 Seneca Lane, Toronto, Ontario. Your immediate supervisor is Robert B. Redford, a lawyer at the firm.

You have been assigned to work on a new file. The buyer is Adrienne Gorzin and she is buying 10 Wellington Road, Toronto, a property in downtown Toronto. The purchase price is $740,000 and the Agreement of Purchase and Sale was signed by all parties on September 14, 2022, with no conditions. The form of Agreement is the standard form that is in your textbook. The house was built in the early 1980s and has a walk-out basement with a 10-foot-long deck off the kitchen. Ms. Gorzin will be getting a first mortgage from the Bank of Montreal in the amount of $450,000. She has also arranged to get a second mortgage from Best Savers Inc. in the amount of $60,000

Questions

1. Can your firm represent all three parties (Ms. Gorzin, Bank of Montreal, and Best Savers Inc)? Explain and apply the relevant rule(s).

2. Ms. Gorzin has asked you if she should get title insurance. How will you deal with this question? Explain and apply the relevant rule(s).

3. After you completed the title search, you discovered the following on title: a mortgage in favour of Royal Bank of Canada and a restrictive covenant stating that elevated decks cannot be greater than 12 feet in length.

a) How will the Royal Bank of Canada mortgage be dealt with on closing? Explain by referring to the specific clause in the Agreement of Purchase and Sale.

b) Can Ms., Gorzin insist that the restrictive covenant be removed from title? Explain by referring to the specific clause in the Agreement of Purchase and Sale.

4. Ms. Gorzin called this morning saying that she is nervous about the fact that the house is older and wants to have a property inspection done next week. Explain whether this can be done by referring to the specific clause in the Agreement of Purchase and Sale.