Land gift transfer within a family. Can one solicitor act for both parties?

An Ri rua

All,

In a land (gift) transfer within a family. Can one solicitor act for both parties?

I had surmised, from reading, that although its not best practice, it is doable.

I have an email back from a solicitor stating that its 'illegal'. Very strong language, if untrue.

I know that a generation before, in our family, that this exact service was carried out by the one solicitor practice. And that was a sale! This intended transaction is purely a gift. I can see downsides to a transfer by sale, but not by gift?

Thoughts? Thank you.

Mr. Incognito

It is unlawful to act on both sides of a transaction anymore.

Your solicitor is correct. It was done in the past but led to conflicts so the new regulations forbid it.

randomrb

An Ri rua wrote: »

All,

In a land (gift) transfer within a family. Can one solicitor act for both parties?

I had surmised, from reading, that although its not best practice, it is doable.

I have an email back from a solicitor stating that its 'illegal'. Very strong language, if untrue.

I know that a generation before, in our family, that this exact service was carried out by the one solicitor practice. And that was a sale! This intended transaction is purely a gift. I can see downsides to a transfer by sale, but not by gift?

Thoughts? Thank you.

The other solicitor simply has to give independent legal advice and witness the signing of the documents for one of the sides, its pretty straight forward. There is no way around the rules now

Peregrinus

What others have said.

Plus, the fact that this is a gift and not a sale is a complicating factor, not a simplifying one.

Victor

An Ri rua wrote: »

I can see downsides to a transfer by sale, but not by gift?

Just becuase you receive a gift, doesn't mean the gift has a value. It could even have a negative value, e.g. the land is polluted and needs to be cleaned up.

Peregrinus

It's more than that. It's that in a gift in a family situation, other family members may feel disregarded or their interests may actually suffer, or the donors may be in a difficult situation later on. Such a transaction is far more likely to be challenged on the grounds of duress, undue influence, taking advantage, etc, etc, than sale for fair value would be.