Why Your Conveyancing Solicitor Shouldn’t Represent Both the Seller and the Buyer in Real Estate Transactions in Queensland.

Across Australia there are no laws preventing Conveyancing Solicitors from acting on behalf of both the Buyer and Seller in a property conveyance. However there are significant risks involved if there are any disputes or complications during the property transaction.

When a solicitor takes on the role of representing both parties in a property transaction, they are required to inform each side about the potential disadvantages that come with this dual representation.Therefore, it is crucial for individuals involved in real estate transactions to understand the implications of signing any documents that mention ‘potential disadvantages’ related to dual representation. These documents are warnings that the solicitor's ability to serve both parties fairly and effectively might be compromised.

One major concern is that the solicitor might end up giving advice that could be detrimental to the interests of one of the parties. This is because the needs and goals of the buyer and the seller are often different and can sometimes be in direct conflict.

Additionally, there is the possibility that if a dispute arises between the buyer and the seller, the solicitor may be forced to cease representing both parties. This situation could leave both the buyer and the seller without legal representation at a critical moment.

In Queensland, solicitors who handle conveyancing work are supervised by the Legal Services Commission. This regulatory body ensures that solicitors adhere to professional standards and conduct rules. Many conveyancers choose not to represent both sides in a property transaction due to the severe consequences associated with failing to disclose dual representation or breaching conduct rules. These consequences can include substantial fines and even bans on their ability to practice law.

The likelihood of conflicts arising during a property sale is notably high. Shane Budden, a representative from the Queensland Law Society, emphasises that solicitors should never represent both the buyer and the seller in a real estate transaction. He points out that it is exceedingly difficult to ensure fair and equal representation for both parties when their interests are not necessarily aligned. The solicitor’s duty to act in the best interest of each client becomes nearly impossible to fulfil under these circumstances.

The Australian Solicitors' Conduct Rules provide clear guidelines on this issue. According to these rules, if an actual conflict of interest arises, a solicitor is permitted to continue representing only one of the clients. However, this can only happen if the solicitor can ensure that the confidentiality of the other client is not jeopardised and if both parties have given their informed consent to this arrangement.

Therefore, it is advisable for anyone buying or selling a house to be extremely cautious before agreeing to share a conveyancer with the other party involved in the transaction. Having separate legal representation ensures that your interests are fully protected and that you receive unbiased and dedicated legal advice. It helps to avoid the complications and risks associated with dual representation, providing greater peace of mind throughout the property transaction process.