Why do I need Independent Legal Advice in relation to a conveyancing matter
24 August, 2021
You may have come across a situation where you have been asked to obtain ‘Independent Legal Advice’ in relation to your conveyancing matter. In fact, in most cases, a lender will advise you to seek Independent Legal Advice regarding your transaction when it becomes necessary to do so. This typically occurs where for example:
- You are purchasing a property under a private limited company:
- Entering a mortgage agreement without being registered on the title to the property:
If you are buying a property with a mortgage or re-mortgaging in situations as above, it is likely your lender will deem the independent legal advice as mandatory before you can complete.
Independent Legal Advice is usually required from a solicitor who is not directly involved or instructed on your behalf in the transaction at hand. It is important to understand the significance of receiving Independent Legal Advice as this may impact your decision on whether or not to proceed. You should be aware that it is not the role of the solicitor giving the Independent Legal Advice to make a decision for you, but rather to inform you of the potential hazards and risks which may be involved – the ultimate decision rests with the buyer.
The advice should explain to you the general basis of the documentation and the consequences which may arise in the result of a default on your loan/ mortgage. Please note the Solicitor is unable to determine the probability of these consequences arising but should provide you with a brief overview of the factors to consider.
It is important to understand that once you have signed the documentation confirming you have received and understood the advice, this means you are unable to later argue that you did not understand your obligations under the mortgage. Therefore, it is crucial that if anything is unclear, you seek clarification from your Solicitor before signing.
Posted by Aston