Law debate puts homebuyer at risk

THE Law Society of Scotland, aka the lawyers’ trade union, has just voted in favour of changing its current rules that allow a solicitor to act for both a buyer and mortgage lender in the same property transaction.

The society says this is to avoid potential conflicts of interest and pressure from lenders. It has a point, as lawyers often do. However, few such conflicts of interest have arisen and the Council of Mortgage Lenders has condemned the change, arguing that dual representation will cost buyers more money. But big mortgage lend- ers in England have a history of forcing house buyers to accept solicitors from their approved lists. Who is right?

It is understandable that Scots solicitors, especially in small practices, feel they are in danger of being squeezed out of the conveyancing business by big mortgage lending firms. Equally, lenders are right to worry about the need for a professional legal service when property transactions are becoming more complex. Unfortunately, it is the ordinary homebuyer who is in danger of being left out of the debate.

It is understandable if purchas- ers feel their interest and their wallets are being sacrificed in a turf war between lawyers and mortgage providers at a time when families are already counting every penny.

One solution would be for the Law Society of Scotland to hold further talks with the Council of Mortgage Lenders, to see if an accommodation can be achieved. There is no need to rush to judgment on this issue. Especially because anything that adds to the cost of house purchases in a fragile property market will cause buyers to think twice. And that will do no-one any favours.