Question of ethics

Q My firm is acting on a sale and we have instructions to send out two contracts.

I know we have to disclose to each prospective buyer the existence of the other in accordance with Law Society practice rule 6A.

My client has no problem with that.

However, my client wants to have different conditions in the two contracts and to be able to refuse to exchange with the first prospective buyer who delivers a signed contract and deposit.

Does this accord with the rule?

A All that rule 6A requires is that you disclose your client's decision to deal with more than one prospective buyer to each party or his solicitor.

The rule imposes no obligation to disclose any of the terms of the other transaction(s) (which can differ) nor to exchange with the first party in a position to exchange.

However, be careful of promising prospective buyers or their solicitors more than your client has instructed you to promise.

Please note

Guidance about the need for a practising certificate is now available on the Law Society's Web site under the 'What's New' banner at: www.lawsociety.org.uk and in print form from professional ethics.

The professional ethics telephone lines are open for general enquiries between 11am and 1pm, and 2pm and 4pm.

Please note that the lines are less busy in the afternoon.

Emergency calls are taken outside these hours, tel: 0870 606 2577.

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, Worcestershire B98 0TD; DX 19114 Redditch; tel: 020 7242 1222; fax: 020 7320 5897