I am contemplating purchase of a property. The seller has recommended that we use the same conveyancer to save money and time.
Is there a recognised conflict of interest in this arrangement?
The property is in rural Victoria and under $500,000. I propose paying cash in full (no loans/mortgage/deferred payment involved).
Yes, and a professional conveyancer should decline the services of the party which approaches them second.
A conveyancer represents the interests of the party which engages them. If there is an issue or dispute, who does the conveyancer represent. An example is say a building inspection finds termites - what do they recommend when dealing with such issues. There are a lot of potential issues that could arise, and if they do, how do you know they will provide advice in your favour?
It is unlikely to save time and money, unless one choses to bypass usual inspections and searches. A seller might try and get you to agree to this through their conveyancer…which it is strongly recommended you don’t agree unless you a a very big risk taker and you are comfortable with potential significant costs after purchase.
I recommend you find your own conveyancer who can represent you through the sale. $500k is a lot of money to take a punt on.
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Thank you. Helpful and reinforces the concern I had.
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This REIC blog article by a consumer advocate solicitor concludes with the same advice as above…
https://www.reic.com.au/2018/10/24/when-can-lawyers-or-conveyancers-act-for-both-parties-2/
It is also worth reading.
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Many years ago I was selling a house and the buyer asked could he use the same conveyancer. I agreed, but problems arose when the buyer wanted to back out of the deal. There was clearly a conflict of interest for the conveyancer, and it ended up with everyone unhappy. My advice: keep the buyer and the seller on separate pages.
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The request from the seller also raises concerns for the motivation behind the request. Perhaps they are inexperienced and naive?
The conveyancing steps required on behalf of the seller and those for the buyer on the day of settlement are usually completed in an hour or two. There is really no time to be saved.
Unless there are special needs we have always been able to obtain fixed quotes (Qld) for conveyancing, and chosen a solicitor we have had prior dealings with.
Note that conveyancing practices vary between State and Territory. The link provided by @phb offers further useful insight.
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A conveyancer SHOULD represent only you, and SHOULD declare any conflict of interest up front, for example if they know or have ever acted for the other party.
If you were going to court, would you be willing to use the same solicitor? Undoubtably not. You want someone who only has your interests at heart while undertaking their task.
Find your own conveyancer.
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