Saturday, August 9, 2008

Lawyer for developer is not a lawyer for purchaser and vice versa

Ruling 14.18 on Section 84 of the Legal Profession Act 1976, Chapter 14 of the Bar Council Rulings 2008 dated 5 December 2007

Please be informed that the Bar Council has made additional rulings on section 84 of the Legal Profession Act, 1976.
The existing Ruling 14.18 will be numbered (1) and the additional rulings are as follows:-
14.18
(2)
Where an advocate and solicitor acts for a purchaser in the purchase of a housing accommodation developed under a housing development, he shall not receive his remuneration for the transaction from the housing developer, and the developer and the purchaser shall each pay for the fees of his own advocate and solicitor.


(3)
Where an advocate and solicitor or the firm of which he is a member either as partner or employee is appointed or empanelled as a member of the developer’s panel of lawyers, he shall be deemed to be acting for the developer and he shall not act for any purchaser in respect of any lot in the same phase of the housing development.


Example:If a solicitor or his firm is appointed or empanelled as a member of the developer’s panel of lawyers for Phase 1 of a housing development project, he may not act for any purchaser in the said Phase 1. If the solicitor or his firm is no longer appointed or empanelled as a member of the developer’s panel of lawyers for any subsequent phase of the same housing development project, he may act for any purchaser in any subsequent phase of the same housing project in which he or his firm is not a member of the developer’s panel of lawyers.


(4)
When a solicitor acts for a developer and attests the signature of a purchaser who is not represented by a solicitor in the transaction, the solicitor acting for a developer shall in addition to obtaining from the purchaser a certificate signed by the purchaser pursuant to the proviso of section 84(1) of the Legal Profession Act, 1976 also inform the purchaser in writing that he is not acting for the purchaser.
The additional rulings contained in Ruling 14.18 (2), (3) and (4) shall come into force on 1st August 2008.
Kindly take note.

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