2. Real Property - Professional Conduct

Question 1

What issues may arise when acting for Buyer/Seller?

Answer 1

Principle 3
- Issue were to arise and clients give conflicting instructions

Principle 4
- Conflict between clients may result to solicitor not being entirely truthful with either/both clients

Principle 5
- Solicitors fail to act in best interests of both clients when they are not aligned

Principle 7
- Clients should not have conflicting interests

Part 1.3 (perform all undertakings)
- Difficult if acting for both parties, may lead to conflict of interest

Part 6.2
- Solicitor not to act if CoI arises, resulting to problems in solicitor’s duties to act in client’s best interests and duties of confidentiality and disclosure

Part 6.3
- Solicitor must keep affairs of current and former clients confidential

Part 6.4
- Disclosure duty to client re material info re client’s matter, subject to exceptions

Part 6.5
- Solicitor cannot act where new client’s interests are adverse to those of existing/former client to whom solicitor holds confidential info

Question 2

What issues may arise when acting for lender/borrower?

Answer 2

Conflict between disclosure to Lender and confidentiality to Borrower

Question 3

What issues may arise during undertakings?

Answer 3

Principles 1, 2, 4, 5 and possibly 7

Part 1.3: Perform all undertakings within agreed timescale/within reasonable amount of time