The President of the Law Society says the introduction of referral fees will 'promote competition and choice for consumers whilst ensuring that independence of advice is not compromised' (see [2004] Gazette, 11 March, 4). Absolute and utter nonsense.


I have just returned from a meeting with a local estate agent who is proposing that my firm enters into a referral fee arrangement whereby the agency will introduce to my firm conveyancing clients in consideration of my firm paying a fee of £50 per transaction, introduced where the matter proceeds to exchange of contracts.



I explained that as primarily a claimant personal injury practice we have never, as a matter of principle, purchased our work from claims management companies. Our present view is that we will not purchase conveyancing work.



I was then told by the estate agent that if we declined the agency's generous offer to enter into a business relationship it would seek to enter into such a relationship with another local firm of solicitors.



In such circumstances, the estate agents would then actively seek to introduce my existing clients to the solicitors with whom they have this referral fee arrangement.



It was also made plain to me that the estate agents wished the conveyancing fee structure to undercut other firms to encourage the clients to use our services.



Finally, the introductory fee of £50 per transaction was to be deducted from the fixed conveyancing fee the agency was seeking to impose on us.



Cannot anyone at the Law Society understand that this is going to be entirely indicative of the way the conveyancing process will now be negotiated and understand that we no longer have any control whatsoever over our existing clients returning to us?



It is all very well arguing that we need to be competitive to protect our position but what is happening is that the estate agents will negotiate our fees for us and we will have no say in our ability to retain our existing clients.



Peter Morgan, Osborne Morris & Morgan, Leighton Buzzard