Conflict of interest ??

adindas

Conflict of interest??
A large conveyancers such as Countrywide, 1st property lawyer / Premier property Lawyers who have a network have the possibility to represent vendor, buyer and a bank.


If the same conveyance works simultaneously for a Vendor, a buyer and a Bank without conflict of interest?? I am aware that these companies have a team of different solicitors which could work independently, but there is still possibility of collusion among them as they are working at the same company and to make the deal done as much as possible.


I understand if you are a buyer side you will in the weakest position if you employ the same conveyancers, any comment ?


Thank you for your time

hcb42

Is this a general question or your situation?

Banks normally use same solicitor.

I would pick a different solicitor to the other party

adindas

hcb42 wrote: »

Is this a general question or your situation?

Banks normally use same solicitor.

I would pick a different solicitor to the other party

Thanks for quick reply. It is not a general question but it is my situation that I might be facing.

The EA is pushing using its conveyance which is as far as I am aware is already used by the vendors. My mortgage will be with HSBC and I know that the EA conveyancer is in the HSBC panel. So it is preferable option from the lender POV.

But What I am interested to know is that because I am in the buyer side I could sense the possible conflict of interest here as even it is a different solicitor, but they are all working at the same company with the same goal.

So here I am asking opinion about the possibility of conflict of interest ?

Thanks for your time

G_M

There is potential for a conflict.

Law Society rules, I believe, state that a firm can act for both buyer and seller provided it is done out of different offices by different solicitors.

However personally I would avoid the possibility of a COI by using a different firm.

I would also on principle never use the firm recomended by (and therefore paying a commission to) the estate agent.

Flat_Eric

There are strict rules on the same firm acting for both buyer and seller and I believe what were strict rules have become even stricter very recently. There may be guidance on this on the Law Society website?

Its usual practice for the same solicitor to act for you as purchaser and your lender. If your lender is HSBC then you may or may not be aware that HSBC have been in the news a lot over the last few months and you will find many a thread on the subject on this forum.

Its possible that your Estate Agent intends to sign your seller up with one firm under the HSBC panel umbrella and you as buyer with another firm under the same HSBC panel umbrella. Have they named names??

adindas

Flat_Eric wrote: »

There are strict rules on the same firm acting for both buyer and seller and I believe what were strict rules have become even stricter very recently. There may be guidance on this on the Law Society website?

Its usual practice for the same solicitor to act for you as purchaser and your lender. If your lender is HSBC then you may or may not be aware that HSBC have been in the news a lot over the last few months and you will find many a thread on the subject on this forum.

Its possible that your Estate Agent intends to sign your seller up with one firm under the HSBC panel umbrella and you as buyer with another firm under the same HSBC panel umbrella. Have they named names??

The vendor/seller has appointed "countrywide" as conveyancer. EA I believe is in the same umbralle with countrywide therefore try to do cross selling.

I am about to find this in a few days when I sit together with HSBC mortgage advisor to finalize my mortgage. But let say HSBC will also recommend countrywide what is your opinion. Is it common that a team same company work for vendor, seller and buyer ? What specific potential conflict here that might emerge from this practice ?

DVardysShadow

adindas wrote: »

The vendor/seller has appointed "countrywide" as conveyancer. EA I believe is in the same umbralle with countrywide therefore try to do cross selling.

Quite aside from never accepting financial or any other services connected to the Seller's Estate Agent [I'm with G_M on this], I would avoid any deal where the other party is using Countrywide because based on 1 experience, they are not up to the job.

Flat_Eric

adindas wrote: »

The vendor/seller has appointed "countrywide" as conveyancer. EA I believe is in the same umbralle with countrywide therefore try to do cross selling.

I am about to find this in a few days when I sit together with HSBC mortgage advisor to finalize my mortgage. But let say HSBC will also recommend countrywide what is your opinion. Is it common that a team same company work for vendor, seller and buyer ? What specific potential conflict here that might emerge from this practice ?

Firstly Vendor/seller are one and the same.

I imagine HSBC will provide you with a list of their panel firms, one of which will be Countrywide. If Countrywide are acting for your Seller then I would pick a different firm (from the HSBC panel list) to act for you.