Engagement Waiver for Mortgage Lenders
This Professional Practice Committee has provided guidance on the application of the recent Client Communication Practice Rules to instructions from mortgage lenders, following enquiries from the profession.
The Committee considers that it is unnecessary to provide written information as required by the rules at least in domestic security transactions, as lenders are setting out the terms of the relationship in their instructions to solicitors and fees will require to be paid by the borrower.
In these circumstances the Committee has granted a general waiver where solicitors are acting for the lender and borrower in domestic conveyancing transactions. Where the firm is only acting for the lender, or is acting in a commercial security, the rules still apply.
