Scots lawyers decide they don’t want separate representation after all


X marks the spot: Scottish solicitors vote against seprep

Scottish conveyancers have voted against the introduction of separate representation for borrowers and lenders – having initially called for it.

At a special general meeting of the Law Society of Scotland yesterday, 847 were against a rule change to the conflict of interest rules that would have prevented joint representation, while 671 were in favour, with one abstension.

The poll followed an earlier decision at the society’s annual general meeting in March when members voted for the principle of a move towards mandatory separate representation.

Bruce Beveridge, president of the Law Society of Scotland, said: “There has been a mood change within the profession since the vote at the AGM. The majority of solicitors at [yesterday’s] meeting clearly believe that the current practice works for their clients, although there remains a significant number of solicitors who have concerns.”

The issues around separate representation were originally raised by solicitors who were worried about the requirements placed on them by the banks and building societies, which they believed were increasingly onerous and could compromise their relationship with the buyer client.

Mr Beveridge said that since the AGM vote, “there has been a huge amount of work done in the interim and we have consulted widely with solicitors, the banks and their representative body the Council of Mortgage Lenders, and consumer interest organisations.

“It remains the case that homebuyers are generally unaware that their solicitor also has to provide specific legal advice to the lender and we will have to consider what we should do to ensure that all clients are clear about the duties and responsibilities of solicitors to both the house buyer and the lender.”

A member survey over the summer saw solicitors split over the change. The Council of Mortgage Lenders was strongly opposed to it, accusing Scottish solicitors of being “protectionist” in seeking the move. Last week Scotland’s largest conveyancing law firm, McVey & Murricane, said separate representation would be a “calamity” and instead suggested a temporary ‘stability fund’ to deal with the current wave of lender claims, with a £20 contribution made by clients in each transaction where a lender was involved.

The society’s regulatory committee will now consider what further work there should be on the issue.

Tags:




Leave a Comment

By clicking Submit you consent to Legal Futures storing your personal data and confirm you have read our Privacy Policy and section 5 of our Terms & Conditions which deals with user-generated content. All comments will be moderated before posting.

Required fields are marked *
Email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Blog


Compliance in the age of technology

Does keeping up with best practice for your law firm in compliance, finance and risk management keep you awake at night? If so, you are not alone.


Continuing competence still in the SRA’s headlights

The SRA’s second annual assessment of continuing competence leaves lawyers and COLPs in little doubt that the regulatory spotlight is still firmly on whether skills and knowledge are being maintained.


How the Oldham community helped my law firm against rioters

On the evening of 7 August, we anxiously watched CCTV footage from outside the building, waiting for the mob. Our blood ran cold when we saw a group of around 150 people approaching.


Loading animation