BUYER - ACTING FOR A MORTGAGE LENDER

Question 1

CAN THE SAME SOLICITOR ACT FOR BOTH THE BUYER AND THE MORTGAGE LENDER?

Answer 1

Yes

Paragraph 6.2 of the SRA Codes of Conduct indicates that it is possible to act for both lender and borrower if there is no conflict of interest or a significant risk of a conflict of interest

Question 2

WHAT PARTS OF THE UK FINANCE MORTGAGE LENDERS’ HANDBOOK ARE RELEVANT WHEN THE SAME SOLICITOR ACTS FOR BOTH THE BUYER AND THE MORTGAGE LENDER?

Answer 2

Part 1 which sets out general requirements which apply to all lenders

Part 2 which contains matters which are specific to the lender in question

Question 3

WHAT ARE THE MAIN DUTIES OF THE BUYER’S SOLICITORS WHEN ALSO ACTING FOR THE MORTGAGE LENDER?

Answer 3

To ensure that the clients have an appropriate mortgage advance and to make sure that contracts are not exchanged until a satisfactory mortgage offer or advance has been received and accepted