"Solicitor Retained" and "Solicitor Supervised"
According to the
Legal Practice Act,
conveyancers are not permitted to offer any form of
legal advice
or legal work to their clients, even though conveyancing matters invariably require the giving of
legal advice
.
Because most consumers would be reluctant to use
conveyancers
if they knew that their
conveyancer
could not perform the
legal work
associated with a conveyancing matter, the concept of "solicitor supervision" has been developed to make
conveyancers
appear more credible.
Unfortunately, the protection offered by "solicitor supervision" is more apparent than real. It usually involves a lawyer being retained by a
conveyancer
for a fixed yearly fee.
This means that the lawyer has been engaged by the
conveyancer
, for the benefit of the
conveyancer
. The
conveyancer
is the
lawyer's client. This is important, because the lawyer must always act in the best interests of the lawyer's own client.
The lawyer allows his/her name to appear on the letterhead of the
conveyancer
as "supervising solicitor", but the lawyer has little if any involvement in the conveyancing process. The chief role of the lawyer is to help the
conveyancer
out of "tight spots", by being available to answer questions the
conveyancer
may ask.
The problem for clients of the
conveyancer
is that the lawyer is not available to them, and is prevented by law from assisting the
conveyancer's
client if the
conveyancer
does something wrong. This is because the
conveyancer's
lawyer has a duty to protect the
conveyancer
from the client in the event of a dispute.
Example:
A purchaser sought our assistance because his
conveyancer
had acted contrary to his interests. The
commission estate agent
through whom the
purchaser had bought his property had made a mistake by setting a specific
settlement
date, when the property had been purchased "
off the plan
". Rather than bring the mistake to the purchaser's attention, and negotiate an out come that would suit both the purchaser and the vendor, the
commission estate agent
"covered" his mistake by approaching the purchaser's
conveyancer
(the
commission estate agent
had "referred" the purchaser to the
conveyancer
in the first place).
The
conveyancer
assisted the
commission estate agent
by having the purchaser sign a fresh Contract, which left the
settlement
date open, pending registration of the
plan of subdivision
. This meant that the purchaser had to move out of his existing home (which had been sold, with
settlement
taking place within a few weeks), and rent another property until the new property was available for
settlement
.
Understandably, when the purchaser realised the consequences of his signing the new Contract, he felt tricked and betrayed. He then decided to contact the "supervising solicitor" to complain about the
conveyancer
, and to have the matter rectified.
The purchaser was most distressed when the "supervising solicitor" explained to him that he would not assist, that he was the
conveyancer's
lawyer, and that the
conveyancer
denied any negligence and would defend any action brought by the purchaser.
The purchaser described his feelings:
"I feel gutted. Everyone that I thought I could trust has turned against me. It turns out that they are now my enemies, but they know everything about me, and they have control of all of my documents, letters and any other things I'll need as evidence."
The only way to have a conveyancing matter truly lawyer supervised is to have the lawyer engaged as YOUR lawyer.
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