QUESTION OF ETHICS.

Q I act for the seller of property.

The seller is disputing the amount of the estate agent's fees and has told me not to settle these out of the proceeds of sale.

What do I do?

A Providing that you have not given an undertaking to the estate agent your duty is to act in accordance with your client's instructions.

If you do not have instructions to deal with the dispute the estate agent will need to correspond directly with your client in this regard.

Your position may be different if:You have given an undertaking based on instructions from your client in which event you and the client will be bound by your undertaking; orYou have inadvertently given an undertaking without instructions in which case there may well be professional, legal and insurance implications.

Q My reporting accountant has told me that when he completes my accountant's report, he will have to include something about my new indemnity insurance arrangements.

What will this involve?

A You will have to show your accountant the certificates of indemnity insurance for the period covered by the accountant's report.

All the accountant has to do is confirm that he has seen such documents which on the face of it show that your firm has the minimum cover (1 million for each and every claim) from a qualifying insurer.

Nothing more will be needed unless the accountant realises (from looking at the documentation or otherwise) that something may be amiss in which event he will be expected to mention that in the report.

Question of ethics is compiled by the Law Society's professional ethics guidance team.

Send questions to Austin O'Malley, the Law Society, Ipsley Court, Berrington Close, Redditch B98 0TD; DX 19114 Redditch; tel: 020 7242 1222.