Acting for two parties

Question 1

What is the guidance for acting for both buyer and seller?

Answer 1

Under the SRA Standards and Regs, Principle 7 states you must act in the client’s best interest. If you cannot due to a conflict you must cease to act. Para 6.2 of SRA Code of Conduct (2019) supports this and sets out that you cannot act if there is a conflict or risk of one. Para 6.3 also states client’s affairs should be kept confidential, which could give rise to conflict if acting for both parties.

Question 2

What is the guidance on acting for both a buyer and their lender?

Answer 2

Para 6.2 of SRA Code of Conduct and SRA Standards and Regulations indicates it is possible to act for lender and borrower as long as there is no conflict or risk of one. In the event of a conflict, the solicitor must cease acting for one or both parties.

Question 3

What is the basic 9 step conveyancing procedure when acting for a buyer and lender?

Answer 3

1. ensure buyer has accepted offer before exchange
2. ensure lender’s instructions have been received and are acceptable
3. submit a report on title to lender after exchange to request mortgage funds
4. carry out K16 and OS1
5. complete mortgage deed and arrange buyer’s execution
6. obtain completion docs and inform lender completion has taken place
7. apply for registration
8. check TID to ensure charge is accurately registered
9. despatch title docs as lender directs