ARTICLE
12 January 2012

Acting For Bank And Borrower – A Change In The Conduct Rules

CC
Collas Crill

Contributor

Collas Crill is an offshore law firm with offices in BVI, Cayman, Guernsey, Jersey and London.

We deliver a comprehensive range of legal services to clients locally and globally in four broad practice areas: Financial Services and Regulatory; Insolvency and Corporate Disputes; Private Client and Trusts; and Real Estate.

Clients include some of the world’s leading financial institutions, international businesses, trusts and funds, as well as high-net-worth individuals and families across the globe. We continue to build a network of independent and trusted partners around the world including the Caribbean, the Channel Islands, the UK, Europe, the US, the Middle East, South Africa and Asia.

Until recently, banks lending on property in England and Wales would also instruct the borrower’s solicitor in all but high value transactions.
Jersey Corporate/Commercial Law

Until recently, banks lending on property in England and Wales would also instruct the borrower's solicitor in all but high value transactions.

Following a change in the conduct rules for solicitors at the end of 2011, a solicitor may only act for both the bank and the lender in very limited circumstances.

These circumstances are where:

  • the mortgage is a standard mortgage provided in the normal course of the lender's activities, where a significant part of the lender's activities consists of lending and the mortgage is on standard terms;
  • the property is to be used as the borrower's private residence;
  • the lawyer is satisfied that it is reasonable and in the client's best interests for the lawyer to act; and
  • the certificate of title required by the lender is in the form approved by the Law Society and the Council of Mortgage Lenders.

The effect of this change, which will have a particular impact on Channel Island lenders, means that banks should instruct their own solicitor in the following circumstances:

  • the loan is to an overseas company or non UK resident individual;
  • the mortgage is over commercial property;
  • the mortgage is over the borrower's investment property; or
  • the borrower can negotiate the terms of the mortgage.

How can Collas Crill Help?

Collas Crill offer banks an independent service with a dedicated UK property team experienced in acting for Channel Island based lenders granting mortgages over properties in England and Wales.

With a fixed pricing structure, Collas Crill can offer Channel Island banks certainty of costs from the outset of the transaction.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More