The Legal Practice Council (LPC) and the Property Practitioners Regulatory Authority (PPRA) recently issued a joint communique that every attorney and property practitioner (estate agent) should take seriously. It’s a reminder -no, a warning – about the kind of conduct that has quietly crept into parts of our industry: incentivised referrals between conveyancers and estate agents.
In simple terms: attorneys cannot “buy” work from estate agents. Whether it’s with a cash kickback, petrol vouchers, payment of phone bills or even just sponsoring a social function, if there is a financial benefit offered in exchange for a referral, it’s a breach of the rules. And both attorneys and agents face real consequences – fines, suspensions, or even being struck off the roll.
The joint notice makes it clear: any “arrangement” that encourages an agent to refer sellers to a specific attorney – no matter how subtle – is a problem. That includes thank-you gifts, entertainment, or even paying for shared marketing unless very strictly done on a pro-rata branding basis.
Let me be clear: I’m not writing from a moral high ground. We work in a competitive environment where marketing and relationship-building are part of the game. Many attorneys, myself included, build trusted relationships with agents, attend their events, and contribute where we can. But this communique is a reminder that there is a line, and it’s not always easy to see. What may feel like a marketing expense can, in the wrong light, look like inducement.
The core issue is not the “thing” being offered – it’s the motive behind it. Are we acting in the interests of our clients, or are we prioritising our bottom line? Referrals should be based on the skill, speciality and service of the business partner, and not “what’s in it for me?”.
It’s easy to forget in the busyness of transactions and targets that we are in the service of our clients. Our role is to protect, advise, and act fairly in the process. Clients don’t always know that their choice of conveyancer should be free and informed. And when referrals are financially driven, it erodes the trust we’re meant to uphold and creates a potential conflict of interest; everything the legal profession stands against.
This is a wake-up call. It’s time for attorneys and agents to reflect.
Yes, we can (and should) market ourselves.
Yes, relationships matter.
But let’s do so in a way that honours the heart of our professions: independence, fairness, and putting our clients first.
Let’s keep the line clear.
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