Acting for the Lender

Question 1

Is it common or rare for a solicitor to act for both the buyer and the lender in:
(a) Residential transaction
(b) Commercial transaction

Answer 1

(a) Common
(b) Rare

Question 2

Can a solicitor act for both the buyer and the lender?

Answer 2

Can act for both even if there is a ‘conflict of interest’ as long as the clients have:

(a) Substantially common interest AND

(b) Safeguards in place (informed consent of both + safeguards for confidentiality)

Question 3

(1) What type of mortgage will a lender typically require?

(2) How is this mortgage defined. There are 2 key qualities?

Answer 3

(1) First legal mortgage

(2) Legal mortgage = Deed + Registered

Question 4

(1) What is the purpose of a ‘Certificate of Title’?

(2) What 3 things does the ‘Certificate of Title’ confirm:

(3) Will the lender release funds without the ‘Certificate of Title’

Answer 4

(1) Property is good security for the loan

(2)
(a) Good and marketable title (i.e. no legal issues with property)
(b) Owner of property post-sale
(c) Completion date - when funds are needed

(3) No