Sra Code of Conduct 2019 Contract Race
The SRA Code of Conduct 2019: Understanding the Contract Race
The Solicitors Regulation Authority (SRA) has recently introduced the SRA Code of Conduct 2019, which includes a new provision on the Contract Race. This article aims to provide an overview of what the Contract Race is and how it affects solicitors and their clients.
What is the Contract Race?
The Contract Race is a situation where two or more clients interested in the same property submit their offers to a seller at the same time. The seller may choose to accept the highest offer, but the offer is only legally binding once contracts have been exchanged.
The first offer to exchange contracts is the one that is legally binding, creating a situation where multiple parties are competing to be the first to exchange contracts. This process is known as the Contract Race.
How does it affect solicitors and their clients?
Solicitors play a crucial role in the Contract Race. They are responsible for ensuring that their clients` offers are legally binding before submitting them to the seller. This involves checking that the terms of the offer are clear, that the client has the necessary funds to complete the purchase, and that any legal or regulatory requirements have been met.
Solicitors may also need to advise their clients on the risks involved in the Contract Race and whether it is in their best interest to participate. For example, the pressure to submit an offer quickly could lead to errors or oversights, potentially leading to legal disputes later on.
In some cases, solicitors may also need to negotiate with the seller`s solicitors to secure the best terms for their clients. This may involve making changes to the offer to meet the seller`s requirements or providing additional information to satisfy their concerns.
What are the SRA`s requirements for the Contract Race?
The SRA Code of Conduct 2019 sets out a number of requirements that solicitors must follow when dealing with the Contract Race. These include:
– Acting in the best interest of their clients at all times.
– Being transparent about the risks and benefits of participating in the Contract Race.
– Ensuring that their clients` offers are legally binding before submitting them to the seller.
– Communicating with the seller`s solicitors promptly and professionally.
– Maintaining confidentiality and not disclosing any confidential information to other parties without their clients` consent.
The Contract Race can be a stressful and challenging process for solicitors and their clients. However, by following the SRA Code of Conduct 2019, solicitors can help their clients navigate the process smoothly and efficiently.
Effective communication, transparency, and a thorough understanding of the legal and regulatory requirements involved are crucial for ensuring a successful outcome for all parties. By prioritizing their clients` interests and working collaboratively with all parties involved, solicitors can help their clients secure the properties they desire, while minimizing risks and avoiding legal disputes.