Question of ethics

Q I have been asked to act on a sale of a house.

The seller has already instructed a firm to represent him on a prospective sale to one buyer.

A second buyer has come along and the seller wants to deal with both without disclosing this to either buyer.

The seller seems to think that this is all right if different firms act.

Is that right?

A No.

The disclosure requirements in Law Society practice rule 6A are not limited to the situation where a firm is instructed on two (or more) prospective sales.

The rule also applies if the solicitor is aware that the seller client is dealing with more than one party.

This means you could not accept the retainer unless the seller agreed to you making the position known to the prospective buyer with whom you are instructed to deal (or his solicitor or other conveyancer, if appropriate).

You would also have to notify the other firm representing the seller so that the notification can be given to the other prospective buyer.Please noteLimited liability partnerships (LLPs)The legislative changes which provide for LLPs came into force on 6 April 2001.

For practitioners to 'convert' to LLP status, the process will involve two successive steps - registration as an LLP at Companies House followed by recognition as a recognised body by the Law Society under the new Solicitors' Incorporated Practice Rules 2001.

These rules also came into force on 6 April 2001 and now regulate all incorporated practices, whether companies or LLPs.

An information pack including the new rules is available from professional ethics.

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

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