Listing with neighbouring property, use same solicitor?

Hi everyone, I recently joined this forum and appreciate all the regular contributors who share so much of their knowledge. Hopefully I can get some feedback on my situation.

We have agreed to list our (investment) property as a combined development site with the next door neighbour. As both sites are identical in size and aspect, it was agreed that both properties will sell at the same price (I would like this verified by solicitor should a sale proceed). The agent has requested we both use the same solicitor, and as neighbour has a prepared contract in place, suggested we also use same.

I would prefer to use our long standing (local) solicitor, though ask would this complicate the sale? Is there inherent risk in using the other owners solicitor? Any other issues worth noting?

Many thanks for your feedback.

 

Depends what the solicitor is doing exactly.

 

My understanding is that solicitor will prepare standard contract of sale, no options or the like. From there handle exchange and through to settlement.

 

Thanks for the reply. Not sure if a special condition could prevent any discrepancy as the contract is with the purchsder, but the condition attempts to effect a separate contract?

 

I don't know how you can be sure that you are selling at the same time as the other party. You could require a copy of the complete contract, but they may amend before signing.

 

Thanks Terry, Terry do you have an opinion on using the same solicitor? Does it assist the dual transaction?

Also, would you consider risk an issue in so far as the solicitor has a historical business relationship with the other seller?

 

There is a potential risk of bias

 

Thanks Terry and all who replied, lots to consider appreciate the information.

 

Using the same solicitor to act on behalf of all parties in the sales side of the transaction is generally acceptable. However all parties should have an agreement to this end, and also who will seek alternate counsel should a conflict of interest or bias present itself during the course of the transaction.

 

I agree this should resolve any issue and request we do this should it work out. Alternatively I will suggest a copy of the front page of each contract is supplied to each party.

 

Front page won't do much. What if a condition on page 5 says vendor will rebate $50k at settlement.

Also to give you the front page one of the buyers would have to lock in frist

 

I've seen this done. All of the owners (4) of a strata complex put the whole building up for auction. They used the same solicitor for convenience. They also entered into a contract with each other to govern the arrangement. All the units were sold in a line at auction, with the sale price divided according to their lot entitlements. 4 contracts were all executed and exchanged at the same time. Worked well for everybody.

In your case, I'd use my own lawyer unless there was a written agreement between you and the neighbour. Remember, the idea is that you work/sell together so you can command a premium. Good luck.

 

A solicitor in such a position may give each party a instruction to seek independent advice. Yes it makes sense to use one to co-ordinate a common approach etc but each owner needs their specific needs to prevail also.

A agent I know recommends a developer specific solicitor act for the group and its not ever same as the developers solicitor !! He requires each parties solicitor details. He coordinates with them. It adds to costs but keeps them light as he does this all the time and its intended to limit multiplication of problems at the developer side and trivial issues at the vendor side. (One party always seems to be greedy and ask for more of a share than others - sometimes its agreed by all parties for sake of the deal). The agent works in tandem with the solicitor so that what is agreed with the developer is reflected in legal contracts / put & call options etc which then go to the parties for their legal adviser to advise them on. Then small changes are made as needed. I believe the agent does this as part of the deal in their quoted fee to vendors. It helps stop deals falling over.