It is becoming increasingly common that house builders are making in "compulsory" for their customers to use their specified firm of solicitors, often the same solicitor as the house builder!
This practice brings doubt the independence and integrity of the solicitor and calls into question which interest is being represented in the conveyancing transaction.
Restricting a house buyer's free choice of legal representation is against the requirements of clause 2.5 of the Consumer Code for Home Builders and could be a potential "conflict of interest" for the solicitor, which breaches the standards and requirements in the SRA handbook.
The Law Society agrees saying
"there are dangers of a conflict of interest where the same solicitor is acting for both sides in a transaction"Even the question of "recommending" a firm of solicitors goes far deeper than the referral commissions builders receive.
Oftentimes it is suggested to purchasers that it makes things "easier" "quicker" or that this firm has already carried out searches for the plots on the developments, making delays less likely when trying to meet a house builder's 28-day 'exchange of contracts' deadline.
Click the link for more information on why you should not be forced into
using the house builder's solicitor and what can happen if you do.
