In a property transaction, is a solicitor allowed to represent both the seller and the buyer in the same transaction if there is a risk of conflict?

In a property transaction, is a solicitor allowed to represent both the seller and the buyer in the same transaction if there is a risk of conflict?

• A. Yes, without restriction.
• B. Yes if both parties consent in writing.
• C. No, not permitted where there is a conflict or significant risk.
• D. No, never under any circumstances.

Answer: (C)

The essential idea is that a solicitor must avoid conflicts of interest. In a property deal, the seller and the buyer have potentially opposing interests and different confidential information. If one solicitor represents both sides, there’s a real risk that loyalty to one client could conflict with duties to the other, or that information obtained from one client could be inappropriately used to the detriment of the other. Because of that risk, professional rules say a solicitor should not act for both parties when there is a conflict or a real risk of conflict, even if the parties gave written consent. The proper approach is for each party to have separate legal representation to ensure independent advice, protect confidentiality, and uphold the integrity of the transaction.

The essential idea is that a solicitor must avoid conflicts of interest. In a property deal, the seller and the buyer have potentially opposing interests and different confidential information. If one solicitor represents both sides, there’s a real risk that loyalty to one client could conflict with duties to the other, or that information obtained from one client could be inappropriately used to the detriment of the other. Because of that risk, professional rules say a solicitor should not act for both parties when there is a conflict or a real risk of conflict, even if the parties gave written consent. The proper approach is for each party to have separate legal representation to ensure independent advice, protect confidentiality, and uphold the integrity of the transaction.