Conflict Of Interest Examples

Kat1e

Hi,

We've just received this from our Conveyancer.

"We are writing to advise you that this firm has been asked to act for the person who is selling this property. Because of that we have to take care to prevent a conflict of interest, as we shall need to represent both of you fully and properly. The professional rules under which Licensed Conveyancers operate permits a firm to act for both parties provided the parties consent to it and do not object. Also a different conveyancer within the firm must represent each party.We are pleased to advise you that we can fully comply with these rules as we have a sufficiently qualified number of conveyancers. Please be aware, however, that should a conflict of interest arise we would have to immediately cease acting for both parties"

Could we request that they do not act on behalf of the vendors? We are not totally sure that we really understand exactly what a conflict of interest means. Would it be that if the conveyancer should find anything wrong that would need negotiation that they will cease acting for us and the vendor? This kind of worries me. Should we find another conveyancer or am I making this a bigger deal than it is?

HampshireH

It's not uncommon and they have suggested they are a big enough company to be able to manage both sides whilst maintaining professional lines.

You can ask them not to represent the other party. They will likely decline as why shouldn't they.

I understand your caution. However if they weren't going to follow the rules they wouldn't have told you in the 1st place

agrinnall

When this happened to me (in Scotland) the buyer was sent to another firm of solicitors to ensure there was no conflict. If you raise an abjection to what your firm has decided I think it's very possible that they will decide not to act for you - is that a result that you want?

lisyloo

I had this when our conveyances were from the same firm but different locations. I just signed it.
They are saying they can handle it if there is a dispute so what’s the issue?
They are just obliged to warn you and give you the choice up front.
I don’t think you can insist what other people do, but if you are uncomfortable then YOU can go elsewhere.
Why should someone else change their plans because YOU are uncomfortable with the arrangements?

shortcrust

Perhaps I'm naive, but I'd be really happy with it. No buck passing and complaining about the other party's solicitors!

G_M

Personally I would avoid the potential conflict. Whether by asking the seller to use a diferent conveyancer, or by doing so myself.

Yes, no conflict issue may arise and all may be smooth.

But what if some disagreement does arise, and either you, the seller, or one of your conveyancers feels that totally impartial advice is not (or cannot be) provided? Changing conveyancer halfway through will be expensive, troublesome, and will cause delay.

Two conveyancers working for the same boss/firm/management structure may find it difficult to 'fight their clients corner' fully, if they then have to meet in team meetings, refer up to the same boss, or whatever.....

davidmcn

Kat1e wrote: »

Would it be that if the conveyancer should find anything wrong that would need negotiation that they will cease acting for us and the vendor? This kind of worries me.

Yes, it might happen at the last minute. I would be more worried about the conveyancers being tempted to gloss over any problems in order to avoid the hassle (and loss of fees) caused by telling one or both of you to go elsewhere.

Should we find another conveyancer or am I making this a bigger deal than it is?

Yes, or (if you were there first) tell them that the vendor should find a different one.

agrinnall wrote: »

When this happened to me (in Scotland) the buyer was sent to another firm of solicitors to ensure there was no conflict.

The rules are somewhat stricter in Scotland. No idea why it's still allowed in England & Wales.

Kat1e

Thank you all very much for all your replies.
We've emailed the conveyance team to see if they could request the vendor use another company as we know that we signed up with them before the vendor did. We are not insisting that anyone go anywhere else as stated, we are just asking the question and we are prepared to use another company if needs be. I think reading the comments here that it's too much of a risk for us personally to proceed and if needs be will go and find another firm. There are plenty out there.

It seems to me that England should have the same property laws as Scotland. Would save so much hassle.

[Deleted User]

If YOU are concerned (they may not be) YOU should seek another conveyancer. Not cause ripples asking the other party to find another conveyancer. Receiving such a request would make me wonder what will happen if there are bigger compromises needed further down the line.

kingstreet

Our solicitors don't work from "first come, first served" they work from existing client relationship rules.

Amazingly, when we bought this place, we and our vendors had an existing client relationship with the same firm, but with different individuals within the firm.

That was acceptable to both parties once we were warned.