What is meant by a ‘conveyancing conflict of interest’?
There are two types of conflict of interest:
Client conflict: When there’s a clash between the buyer's and seller’s best interests. This means the conveyancer either shows preferential treatment to one party or is unable to provide full legal advice to one party without it being detrimental to the other.
Own interest conflict: When there’s a clash between the conveyancer and client’s best interest; financial or personal.
Managing conflicts in practice
When a firm acts for both sides in a transaction, it should put safeguards in place to keep each client's information separate. This usually means assigning different conveyancing solicitors to each client, keeping separate files, and restricting access to emails and notes.
Both clients should be given a clear explanation of any potential risks or limitations from the start and, where required, agree to these arrangements. Firms should also carry out conflict checks throughout the transaction, not just when they are first instructed. If a conflict arises that cannot be managed, the firm must stop acting for one or both parties, explain the situation in writing, and help arrange a smooth transfer to another solicitor to avoid unnecessary delays.
How does a conveyancer determine whether there is a conflict of interest?
To assess whether your transaction has a conflict of interest, your conveyancer will consider things like:
The bargaining power of each party and how likely they are to use it
Any unique vulnerabilities in each party’s situation
The length of the chain, and each party’s position within it.
What happens if the conveyancer decides the conflict risk is minimal?
If your conveyancer concludes that the risk of conflict is low or can be managed effectively, they may proceed with the transaction. In this case, they’ll put safeguards in place for both parties, which often include:
Inform both parties in writing about the risks and consequences if the conveyancer must stop acting
Ask both parties to give informed consent in writing, acknowledging the situation
Record an analysis of the factors they’ve considered to conclude they can act for both parties
Ensure each party is represented by different individuals from the same firm