Do Solicitors Get A Raw Deal?

A fortnight ago, my family and I visited our new Dental Surgery for the first time. On arrival, we all had to complete a Registration Form and then took it in turns to see the Dentist, who introduced himself. My wife and I needed some follow up treatment, so we arranged another appointment and my wife was asked to pay a deposit towards its cost (which had already been explained to us). Apart from a Receipt, no further paperwork was forthcoming. We returned last week, had the work done (which wasn't too bad thanks) and paid the balance. Again, only a Receipt was given.

Now don't get me wrong. I'm sure you're all more or less familiar with this scenario. After all, it seems, certainly from my own experience of other Surgeries and Chiropractors etc. at least, that this is the norm: let the Patient provide the required information, take immediate credit/debit card payments, handover a Receipt and that's it. However, being a Solicitor, I couldn't help but compare this experience with that of my own Clients. Here's what I would have had to do in similar circumstances:

1. If possible, I would have provided some basic costs and other information before the first meeting to ensure that there were no misunderstandings, especially concerning the scope, time limit and cost of the interview.
2. In any case, I would have supplied a detailed Client Care Letter compliant not just with the Solicitors Code of Conduct, but the myriad of other rules and regulations to which we are subject, and asked the Clients to sign, date and return a copy. Again, this would, ideally, have take place prior to the initial meeting (to the extent that I could have satisfied the rules and regulations at that stage with any outstanding information etc. following as soon as possible). As part and parcel of this, I would have had to agree a level of service and spell out our respective responsibilities, not only my name and status, but that of any supervisor, the basis and terms of my charges, my complaints procedure and possibly my Professional Indemnity Insurance coverage.
3. Prior to accepting any payment, I would have had to consider the operation of the Money Laundering Regulations and, where appropriate, obtain and copy satisfactory evidence of the Clients' names and address and perform an electronic check to ensure that they were not politically exposed persons etc.
4. Following the meeting, as well as confirming any outstanding costs and other information, I would (amongst other things) have had to write to identify the Clients' objectives, explain the issues involved and the options available and agree the next steps to be taken. This would have been repeated, arguably after each and every attendance.

I'm sure I've missed some items off this list, but, even as it stands, it looks much more cumbersome and onerous than the Dentist's.

Do the vast swathes of paper and information sent to my Clients make for a more fulfilling experience? Are such Clients better protected and more informed than other members of the public? If the answer to these and other similar questions is "yes", why should this be so when healthcare professionals are, after all, dealing with people's physical wellbeing, where the risks and potential consequences are, in some cases, arguably much more serious/grave? Furthermore, why are unregulated "Legal Consultants" and "Will Writers", sometimes providing identical services, not scrutinised in the same way? Should the "act" not override the "actor"? What about Accountants, Estate Agents and Surveyors? Why are they treated any differently? If, on the other hand, the answers are "no", why do Solicitors find themselves in such an unenviable and, on its face, unfair position? Have their regulatory bodies not been as robust as others?

I suppose the upshot is this: does the (over) regulation of Solicitors help or hinder the profession and its Clients? I think I know the answer, but what do you think?

No Move, No Fee

Staying with Solicitors charges, I recently came across a potential Client rejecting a conveyancing quote simply because the firm in question did not offer a "no move, no fee" service. I must confess that at the time I thought the firm was right. Conveyancers are already doing more work for less, without having to underwrite the housing market, especially in the current downturn. Why should Solicitors take the hit (again)? However, having thought about it and done some research, now I am not too sure.

I think it is fair to say that most Clients these days expect their Estate Agent to offer "no sale, no fee", so why should Solicitors be any different? After all, Agents stand to lose their marketing spend, not to mention their time and resources. The difference, of course, is the potential return. To compensate them for taking such risks, Agents invariably charge a commission based on a percentage of the sale price. True, advertising can be expensive and both the volume and frequency of work may be less, but, nevertheless, I figure that the Agents' mark up is more than comparable with the Solicitors' fixed fee, especially for higher value properties, which no doubt make up for the cheaper ones. The flip side, of course, is that most law firms get paid regardless of the outcome. Furthermore, their disbursements are also paid by the Client. So, in summary, it seems to be all about a risk/reward analysis. Agents risk getting nothing and insure against this eventuality, whereas most Solicitors prefer a certain, lesser amount.

However, the tide seems to be turning. Plenty of volume Conveyancers are now offering "no completion, no fee", without seemingly impacting on price, although the small print of such schemes and, and in some instances, the associated insurance policy, may not be quite what they seem. More importantly, High Street firms are now getting in on the act, sometimes charging no more than usual and waiving their fees (but not disbursements) in full if the transaction falls through. Other schemes charge more, in a similar vein to the Agents, either in the form of an upfront additional payment, or higher overall charges. The point is that Solicitors realise the benefits to both parties. The Client secures piece of mind and the firm gets the potential business in an increasingly competitive marketplace flooded with IT savvy "legal tourists". Factor in the possibility of cross-selling other legal services and the business model seems to make sense if the apparent uptake is anything to go by. The exact terms will undoubtedly depend on the circumstances, but the scheme will, at least initially, be one of your unique selling points differentiating yourself from most, if not all, of your local competitors. Don't get left behind. Trailblaze and let the rest follow.

Energy Performance Certificates: An Opportunity For Solicitors

A recent posting on The Law Forum highlighted a new venture called Partner Property ("PP") being promoted by ipacks2go and eTech. In essence, the scheme aims to provide "'t]he ideal revenue stream replacement for HIPs". If the seller decides to use one of PP's "legal partners", the Energy Performance Certificate ("EPC") is free. The Domestic Energy Assessor then gets paid for the EPC and, on completion, receives a share of the conveyancing fees, which can be split with the Estate Agent.

As I commented at the time, this appears to be yet another attempt to "hijack" Solicitors' Clients. To try to combat such threats, why don't Solicitors offer similar incentives? They could, for example, arrange the EPC and then refund its cost (about £50) if they deal with the conveyancing. A group of local firms could join together for advertising and marketing purposes and still offer Clients freedom of choice between local, quality firms. Such a proposition could also alert unsuspecting potential Clients to the alternative being advanced by PP and others.