Why Choosing Separate Conveyancers for Buying and Selling Protects Your Interests: A Cautionary Tale

When navigating the intricate process of buying or selling a home, many people rely on the expertise of conveyancers to ensure smooth, legal transactions. However, one critical aspect that buyers and sellers should be aware of is the potential risk associated with instructing a conveyancer to act on both the sale and purchase of a home.

The case of Stephen Vasey, a partner at Walters & Plaskitt, serves as a significant cautionary tale illustrating the pitfalls of such decisions.

In a recent decision by the Solicitors Regulation Authority (SRA), Stephen Vasey faced a financial penalty for acting on behalf of both parties in a property transaction where a conflict of interest was present. In this particular case, one client relinquished beneficial ownership of a property to another client, leading to a situation where the conveyancer’s obligations to both parties were inherently conflicting. This incident underscores the importance of avoiding conflicts of interest in property transactions.

One of the primary concerns when a conveyancer acts for both sides is the lack of competent service tailored to each client's unique needs and circumstances. The SRA found that Vasey failed to obtain necessary instructions from the client relinquishing ownership and did not ensure his actions were in the best interest of all parties involved. This oversight not only jeopardises the integrity of the transaction but also exposes clients to potential losses and complications in the future.

For home buyers and sellers, the lesson is clear: always prioritise choosing a conveyancer who can act solely in your best interest, free from conflicting duties. Having separate legal representation ensures that your individual needs and circumstances are adequately considered, and your rights are protected throughout the transaction. This approach minimises the risk of any conflicts that could lead to unfavorable outcomes or additional costs.

The consequences of allowing a conveyancer to act in a conflicted capacity can be significant. As seen in Vasey’s case, the SRA imposed a financial penalty, not just as a punishment, but as a deterrent to prevent similar conduct within the legal profession. Although the conduct was not deemed reckless, it had the potential to cause significant financial loss and negatively impact the clients involved.

Ultimately, the takeaway for home buyers and sellers is the critical importance of diligence when selecting legal representation. By ensuring that your conveyancer is dedicated solely to your transaction, you safeguard your interests and contribute to a fair, transparent, and successful property transaction. Avoiding conflicts of interest is not just a legal formality—it's a crucial step in protecting your investment and peace of mind.