Acting for seller and buyer of a flat where terms are still to be negotiated (Code 6.2)

Paragraph 6.2 of the Code prohibits acting where there is a conflict of interest or a significant risk of one, unless the clients have a substantially common interest or are competing for the same objective, and the conditions on consent, safeguards and reasonableness are met. The SRA's conflicts guidance lists one client selling an asset to another client as a situation that can create a conflict. It says this does not mean you can never act, if on the facts there is no significant risk of conflict, for example where all the relevant terms are already agreed. However, if substantive negotiations between the clients are foreseen, the solicitor should not act unless an exception applies, because a conflict is likely. Ms Baptiste and Mr Mensah still have to negotiate the roof, the deposit and the completion date. A seller and buyer bargaining against each other are not competing for the same objective, and lack the strong consensus that a substantially common interest requires. The firm must act for only one of them, or for neither.

Why A is wrong: A substantially common interest requires a clear common purpose and strong consensus on how to achieve it; outstanding negotiations show there is no such consensus.

Why B is wrong: Consent is only one condition of an exception; it cannot authorise acting where no exception applies.

Why D is wrong: Separate fee earners may protect confidential information but do not create an exception to para 6.2.

Why E is wrong: There is no such carve-out; the conflict rules apply to conveyancing as to any other matter.