23^rd August 2024

When buying or selling property in New South Wales, it might seem convenient to use the same conveyancer for both the purchaser and vendor, however the potential risks are astronomical. Understanding these risks is essential for ensuring a smooth and unbiassed property transaction.

Christine Anderson’s experience with using the same law firm for both the sale and purchase of her beachside home highlights the potential pitfalls. Despite the firm’s assurances, this arrangement led to numerous conflicts and complications, highlighting the risk of the purchaser and vendor using the same conveyancer.

While it is legal for a single conveyancer to represent both the purchaser and the vendor in a property transaction, legal experts generally advise against this practice. Here’s why:

Conflict of Interest

One of the primary risks of having a single conveyancer represent both the purchaser and the vendor is the potential for a conflict of interest. Each party has unique objectives and interests in the transaction. A conveyancer who represents both sides may struggle to advocate effectively for either party. This can lead to compromised representation and unresolved disputes.

Independent Advice

Both the purchaser and the vendor need independent legal advice tailored to their specific circumstances. When the same conveyancer represents both parties, they may find it challenging to provide unbiased advice. This could result in one party being disadvantaged if their interest’s conflict with the other’s.

Confidentiality Concerns

Ensuring confidentiality is another critical issue. Separate conveyancers help maintain the privacy of sensitive information shared by each party. With a single conveyancer involved, there is a risk that confidential details might be inadvertently disclosed.

Negotiation and Representation

Effective negotiation often requires dedicated representation. If conflicts arise during the negotiation process, having separate conveyancers ensures that each party has a representative exclusively advocating for their interests.

Professional guidelines and ethical standards generally advise against a conveyancer representing both parties in a transaction due to the risk of conflicts of interest and compromised fairness. For a real life account of how these issues can manifest, read here about Christine Anderson’s experience.

At Bangalow Conveyancing we prioritise your interests by offering dedicated and independent legal representation. Contact us today on (02) 6687 0548 to ensure that your property transaction is managed with the highest level of care and professionalism. To read more conveyancing tips, check out our other blogs.