Who must take steps regarding non-owning occupier consent form, and who must not advise the occupier?

Who must take steps regarding non-owning occupier consent form, and who must not advise the occupier?

• A. Lender must take reasonable steps to ensure occupier understands the nature and effect of the sale, and the conveyancer must not advise the occupier.
• B. The occupier must be told by the seller and nothing else.
• C. The conveyancer must advise the occupier.
• D. Lender must take reasonable steps to ensure occupier understands the nature and effect of the sale; the conveyancer must not advise the occupier.

Answer: (D)

In this scenario, the duty to inform and the limits on who can give advice hinge on the occupier’s position and the lender’s interest. When someone occupies the property but doesn’t own it, the lender has a duty to take reasonable steps to ensure the occupier understands the nature and effect of the sale. This protects the occupier from being blindsided by the transaction and makes sure they’re aware of how the sale might affect their occupancy or rights. At the same time, the conveyancer (the solicitor handling the transaction) must not advise the occupier. They owe duties to their own client and could face conflicts if they try to represent or give substantial legal advice to a third party. The occupier should obtain independent legal advice from their own solicitor if needed. So the correct approach is that the lender takes reasonable steps to ensure the occupier understands the sale, and the conveyancer must not advise the occupier. The occupier being told only by the seller, or the conveyancer providing advice to the occupier, would not meet these duties.

In this scenario, the duty to inform and the limits on who can give advice hinge on the occupier’s position and the lender’s interest. When someone occupies the property but doesn’t own it, the lender has a duty to take reasonable steps to ensure the occupier understands the nature and effect of the sale. This protects the occupier from being blindsided by the transaction and makes sure they’re aware of how the sale might affect their occupancy or rights.

At the same time, the conveyancer (the solicitor handling the transaction) must not advise the occupier. They owe duties to their own client and could face conflicts if they try to represent or give substantial legal advice to a third party. The occupier should obtain independent legal advice from their own solicitor if needed.

So the correct approach is that the lender takes reasonable steps to ensure the occupier understands the sale, and the conveyancer must not advise the occupier. The occupier being told only by the seller, or the conveyancer providing advice to the occupier, would not meet these duties.