Ethics & Professional Conduct In Property Practice

Question 1

What should you do if presented with a legal document incorrectly prepared by an unrepresented party?

Answer 1

Never point out the defectives but advise them to seek independent legal advice

Question 2

If a party is unrepresented in registration of land what does a solicitor need to obtain from them despite them not being their client?

Answer 2

ID

Question 3

When can an undertaking be withdrawn?

Answer 3

Only by agreement

Question 4

Does an undertaking need to be in writing?

Answer 4

No

Question 5

What must you always be in when giving an undertaking?

Answer 5

Control

Question 6

What do you obtain before making an undertaking?

Answer 6

Consent

Question 7

What are proper costs and proper and reasonable costs mean regarding undertakings?

Answer 7

Common law states
Proper costs - costs properly incurred

But if the actual cost incurred is less then u should use:-
Proper & reasonable costs - properly incurred AND reasonable

Question 8

What steps are needed for a contract race?

Answer 8

1. Obtain consent to disclose contract race to all in writing
2. If no Consent - cease to act

Question 9

Can u act for a buyer and seller in contract race ?

Answer 9

No

Question 10

Can u act for two or more buyers in a contract race?

Answer 10

Yes as they are competing for the same objective but need to satisfy requirements

Question 11

What are the two conflict of interest exceptions?

Answer 11

1. Competing for the same objective
2. Substantially common interest

Question 12

Acting for two buyers under the competing for the same objective examples (4)

Answer 12

1. Residential straight forward
2. Auction purchase
3. Insolvency
4. Bid or tender process

Question 13

What examples exceptions apply for a COI?

Answer 13

1. Commercial property work
2. Business law & practice

Question 14

Can a solicitor act for both buyer & seller?

Answer 14

Yes but it’s high risk of conflict or significant risk of conflict

Question 15

Acting for a buyer and seller at arms length will that likely be a conflict?

Answer 15

Yes

Question 16

Acting for both parties when land is gifted between connected parties is it likely to be permissible?

Answer 16

Yes - substantial comment interest exception

Question 17

If you decide to act for both parties and a conflict arises down the line what must a solicitor do?

Answer 17

Cease to act for both parties as confidentiality overrides disclosure

Question 18

Can u act for joint buyers?

Answer 18

Usually yes as they have the same interest acquiring good marketable title
Make sure no duress or undue influence

Question 19

Can u act for lender and buyer?

Answer 19

Yes usually in a straightforward residential transaction

Question 20

Name 3 ways acting for a buyer and lender may be a conflict

Answer 20

1. Onerous conditions from lender
2. Aware buyer will not comply with the lender conditions
3. Not standard T&Cs

Question 21

Law Society guidance provides its permissible to act for lender and buyer when ? (4)

Answer 21

1. Standard residential Mortgage Terms
2. By a Institutional lender
3. Using Law Society/UK finance approved certificate of title
4. Reasonable & clients best interests

ALL ABOVE MUST BE MET

Question 22

when acting for a buyer and lender which exceptions of COI is used?

Answer 22

Substantially common interest

Question 23

Can u act for a buyer & lender in commercial transactions?

Answer 23

Yes but less common and lenders usually instruct their own solicitors

Question 24

Can you act for part of the transactions?

Answer 24

Yes on the substantially common Interest but best avoided

Question 25

Securing money on a property for business purposes can you act?

Answer 25

Yes but subject to Etridge guidance

Question 26

Etridge Guidelines

Answer 26

1. Decide if you can act
2. Obtain full instructions with consent
3. Separate advice & Apts
4. Consent to write to lender confirming implications

Question 27

What does the Etridge guidelines usually protect?

Answer 27

The lender