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  • Legal Aid Lien

    hi,
    just found out yesterday my ex has a legal aid lien on our property. For equalization I plan to stay in the home and buy her out for next to nothing. What happens with her lien?

  • #2
    Same thing happened to me. The lien is your ex's responsibility and must be paid out before the property is put into your sole name. If it's not a lot of money, you could just pay it if you wanted to.

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    • #3
      A lien means that if the house is sold, the creditor gets paid first, before the homeowner is paid.

      If you are buying out your wife's share, then Legal Aid gets paid first. I think the more complicated scenario would be if you were selling outright to a third party, you would want to ensure Legal Aid was not paid out of your share (depending on amount.)

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      • #4
        In my case, I made sure that the payment of lien comes out of ex's equalization payment and got that in the settlement agreement that was subsequently translated into final order. My lawyer:

        -Got written confirmation from LAO of the outstanding amount
        -An acknowledgement from LAO that they would discharge lien upon payment
        -Deducted the outstanding amount from equalization payment and forwarded to LAO
        -Sent the remaining balance to ex through her lawyer

        I hired another lawyer to do the title transfer who was much more cheaper than the family law lawyer.

        If your ex is getting next to nothing, it might be a problem for you. Talk to a real estate lawyer as they specialize in this matter and then to your family law lawyer. Make sure the outstanding amount is reflected in the settlement agreement and eventually paid back to you if you do end up paying it in the first place.

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        • #5
          I would be very leery of any lawyer's lien on property. That is equivalent to giving the lawyer a blank cheque. Doesn't take long for a lawyer to rack up 10k for meeting with client and firing off a few letters.

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          • #6
            so, I plan to pay the amount of the lien as her equalization payout. Her last legal aid lawyer said he was no longer representing her so I assumed she was cut off LA. I have just been informed she has retained new counsel. Would she perhaps have received another legal aid certificate? is that possible

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            • #7
              Originally posted by singledad99 View Post
              In my case, I made sure that the payment of lien comes out of ex's equalization payment and got that in the settlement agreement that was subsequently translated into final order. My lawyer:

              -Got written confirmation from LAO of the outstanding amount
              -An acknowledgement from LAO that they would discharge lien upon payment
              -Deducted the outstanding amount from equalization payment and forwarded to LAO
              -Sent the remaining balance to ex through her lawyer

              I hired another lawyer to do the title transfer who was much more cheaper than the family law lawyer.

              If your ex is getting next to nothing, it might be a problem for you. Talk to a real estate lawyer as they specialize in this matter and then to your family law lawyer. Make sure the outstanding amount is reflected in the settlement agreement and eventually paid back to you if you do end up paying it in the first place.
              Do this and you will be fine... Although the lean doesn't identify who it is registered against the court will order that the lean be paid by the person who had it registered and received the money from LAO.

              A request to the Ombudsman and Attorney General of Ontario has been made that the leans registered to title of a jointly owned property identify the person whom the lean was made on behalf of has been requested.

              LAO is the only organization I know that can put a lean on jointly owned property without the consent of the other property owner. So, they should be identifying that the lean is only on the equity for which the person who the lean is registered against.

              Have the lawyer pull the Service Ontario record on the property and you will see the date when LOA registered the lean on the property. You can also walk into the land registry office and get it for 25$ yourself too.
              Last edited by Tayken; 12-05-2012, 04:53 PM.

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