The Relationship Between your Conveyancing Solicitor and Property Developer
Posted on 3rd March 2020
When purchasing a new build property, your conveyancing solicitor will deal not only with the developer’s solicitor, but the developer’s sales team, in addition. The sales team will obtain updates from your property solicitor, as to the progress of the matter and how quickly that all important Exchange of Contracts may take place.
Developers often impose deadlines as to when Exchange of Contracts is to take place. It is at this stage that the transaction is legally binding and, therefore, by proceeding to the same as soon as possible, the Developer has secured the sale making them, more or less, guaranteed to receive the purchase monies. (See our blog on the implications of Exchanging Contracts, by clicking here).
In order to ensure Exchange of Contracts takes place as early as possible, there are often incentives offered by the Developer, such as the offer to cover Stamp Duty Land Tax costs, or upgrades to fittings at a reduced fee. This encourages potential property purchasers to push for Exchange of Contracts taking place before the deadline date, imposed by the Developers. Whilst we all love a bargain and a freebie, the concern is that this may mean that the fundamental legal process can be overlooked, by some.
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Our solicitors in Garstang have noted the concerns of the Competition and Markets Authority. The fear that has recently been raised by the Competition and Markets Authority, who have highlighted the potential compromise in consumer protection, which may arise as a result of Developer deadlines being imposed. This concern relates particularly to conveyancing solicitors who form close-knit relationships with Developers. The concern is that, by mutual agreement, the Developer will pass work and potential clients to the conveyancer and, in return, they will work to facilitate Exchange of Contracts as early as possible.
At this stage, the red flags within the legal brains of our solicitors in Preston are raised. As conveyancing solicitors, we have a duty to act in the best interests of our clients, acting independently and with honesty and integrity. It is, therefore, no doubt that this duty is being questioned in cases where such relationships exist, in the fear that the focus may be placed upon attaining the referral of work, as opposed to the demands and needs of the clients.
At MG Legal, we can safely say that this is something our solicitors in Preston do not even entertain. Our conveyancing solicitors, like many others, work with Developers on a daily basis, however, this is where the relationship ends and is strictly on a professional basis. Our team’s main concern are our valued clients, and not the desire of the Developers, to Exchange Contracts early. MG Legal’s property solicitors in Preston are totally independent and, with our clients at the forefront at all times, we offer nothing less than a first-class service as a result.
For those whom are new to the process of purchasing a property, Developer recommendations may be misleading. We would, therefore, always recommend you do your research on selecting the best local conveyancing solicitor for you. At MG Legal, our solicitors in Preston pride themselves on glowing reviews and repeat business from our happy clients. Don’t just take our word for it, click here to see our reviews.
If you are proposing to purchase a property, or have any other conveyancing query, contact our solicitors in Preston today, at property@mglegal.co.uk, who will be on hand to discuss.
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