Practical Conveyancing - Professional/Law Soc

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Recommended Articles

Boundaries – rectification
The LR has power to alter the register to correct a boundary error, but this can be refused if there are ‘exceptional circumstances’ that justify no... Read more...

Boundaries – OS maps
Be wary of using an OS map to define a boundary. As the CA has recently made clear, OS plans offer ‘an uncertain guide as to the precise boundary li... Read more...

PPS3: a change of emphasis
The new planning policy statement on housing came into effect in early April. Susan Hawker provides a reminder of its contents Read more...

Professional rules/Law Society

LLP - duty of good faith

We all know that partners owe a duty of good faith towards the partnership as a whole, and also to their fellow partners. But, the rules are different for LLPs.

Partner - retirement justified

The age discrimination legislation does not normally apply to employers who want to compulsorily retire employees at age 65 (provided the correct procedure is followed). But, that luxury is not available to partners, and a partnership trying to enforce a compulsory retirement age will have to objectively justify it on the basis that it is a ‘proportionate means of achieving a legitimate aim’.

Audit letters - liability

If you have to provide an audit letter on behalf of a corporate client, then do be aware of the Law Society guidance (originally published in 1970 and 1977, re-published in the Gazette 16 March 2000). In summary:

Solicitor - duty to other side

What is the extent of the duty you owe to the other side during negotiations? The starting point is that solicitors must ‘be scrupulously fair and not take advantage of obvious mistakes’ (Ernst & Young [1996]).

Signature - check!

Identifying clients is fundamental to legal practice these days. Money Laundering Regs 2007 make this clear.

Fraud - split property

A relatively new type of property fraud is the ‘split property fraud’. It usually requires a fraudulent property owner, plus a fraudulent valuer and solicitor. In essence, the property owner goes to a lender for a remortgage. He has the property valued for its true value (eg £100,000), and so gets an advance of £80,000.

Remuneration certificate - costs paid

Is a client entitled to a remuneration certificate, if the bill has already been paid by way of deduction from moneys received on account? The answer, of course, is ‘yes’.

Client - costs information

The case last year involving Withers should remain at the forefront of solicitors’ minds as a reminder of the importance of providing proper costs information.

Fraud - watch out!

All firms will have received a newsletter from the Law Society in December reminding them about the risks of mortgage fraud.

Money laundering – reliance

Reg 17 of MLR 2007 permits reliance on customer due diligence (CDD) conducted by another regulated person. But:

Interest – client money

If a client’s money is held in a general client account, then the client will still be entitled to interest (depending upon the amount of money held and period for which it is held). But, there is no need to pay interest if the calculated amount is £20 or less. In addition, no interest need be paid if the money held does not exceed the amounts and times set out below:

Money laundering – repeating identity checks

Under Money Laundering Regs 2007 (in force 15 December) it may be necessary for firms to repeat their identity checks. Customer due diligence (CDD) procedures should continue for as long as you deal with a client.

Money laundering – regulated work

A reminder that Money Laundering Regs 2007 come into force on 15 December (they replace entirely the 2003 Regs). The Law Society has prepared an excellent guidance document (www.lawsociety.org.uk), which is now Treasury-approved (which should give it more status before the courts).

Instructions – corporate client

A reminder of the importance of getting clear instructions as to who is the client. This is especially so when instructed by a company within a group, or where a company director is also involved with other companies. In such situations there can well be confusion about what is the instructing entity. For instance:

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