Separate representation for lenders and borrowers in conveyancing transactions “should be the norm”, a senior manager at insurer Zurich has said. Michael Blüthner Speight described the increased cost would be “minimal”.
Scottish conveyancers have voted against the introduction of separate representation for borrowers and lenders – having initially called for it. At an SGM of the Law Society of Scotland yesterday, 847 were against a rule change to the conflict of interest rules while 671 were in favour.
Scotland’s largest law firm conveyancer has entered the separate representation debate, critiquing the move as “politically motivated, opportunistic, regressive” and “anti-competitive”, and a “calamity” for solicitors and consumers.
A war of words has broken out between the Law Society of Scotland and Council of Mortgage Lenders over the former’s decision to ban joint representation of borrower and lender, subject to formal rule changes later this year.
The Law Society has called on the government to lead a “mediated dialogue” with mortgage lenders to deliver “an amicable long-term solution” to the ongoing arguments over conveyancing panels. It has asked business secretary Vince Cable to intervene.
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