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I received an email from a law firm recently, it read as follows:

We recently had a client come to us to say she was bullied' by an agent who wanted the client to go to a particular firm in our locality even though the client was to be charged double the fee we had quoted. On inquiring why, the agent then began to make derogatory remarks about our firm and made out that the client would be making a bad decision if she chose to instruct us.

That email led to a number of other comments, including:

We are aware of a local estate agent who steers our clients away from using us to other firm's which pay them a referral fee. Fortunately, they are not always successful because our clients ignore them and instruct us and tell us what has gone one, but I am sure there are other clients who accept what they are being told about us and don't instruct us.

I don't know how best to deal with it but if other firms are experiencing a similar problem then maybe a group action to their representative body may help. We have refused to pay referral fees which I believe is part of the problem - Bold Legal Group Member

This reminds me of two incidents:

Firstly, a number of years ago when I was carrying out some consultancy work I went into an estate agent and asked - on behalf of the law firm who had employed me - why they did not recommend that particular firm. The reply was short and simple: I can't really remember but they annoyed me and, not only do I not recommend them, but I also steer away from them as many of their existing clients as I can. I reported this to the Head of Conveyancing. He made contact with the estate agent in question and they met for a coffee. Hatchet buried. Recommendations started again.

Secondly, the daughter of an old client phoned me and explained that I had acted for her mother when she bought a property and that she was now selling. Unfortunately, since buying she had suffered a serious stroke and needed help with all of her business affairs. After expressing my concern, I said I would be happy to help.

The problem, said the daughter, was that the selling agent was insisting that her mother should instruct the solicitors recommended by them and despite asking for that not to happen greater pressure was being exerted. I told her not to worry and that I would talk to the estate agent and resolve the matter.

I called the agent, she was still being very forceful and reluctant to allow me to act. I then said:

My client has recently had a bad stroke, and without instructing your conveyancers, whom we both know won't be able to give her the attention she requires and deserves, don't you think she has suffered enough The lady giggled and said I was right. She dropped continuing with her arguments.

David Pett of MJP Solicitors has this idea as a possible solution:

Our conveyancing team currently provide unpaid support to agents in two out of every three phone calls received during the day. These calls are time consuming and disruptive. Many of them are unnecessary.

In addition to this we receive at least 10 to 15 emails each day from agents seeking updates which also require attention and manpower but for which payment is not received.

There are also other steps taken for which we do not receive payment namely:

Obtaining details of the agents fee

Checking with the client the fee

Collecting the funds from the client to pay the fee (part of the completion statement)

Transferring the fee to the agent either by cheque of BACS (both of which include paying a fee to the bank)

Taking into account the above tasks, as well as the number of updates provided on a sale transaction, the total value of time spent is at least one hour and therefore represents between £50 and £75 of the fee we charge, if not more. This is significant sum to give away'. It should also be viewed against a major imbalance between the fee a solicitor can charge and the scale fee of the agent.

The other issue concerns unofficial blacklisting which has arisen because of the unconventional way in which we work and the pressure agents are receiving from certain of our competitors to ensure work does not go anywhere else but to them. This also has an impact on the bottom line by clearly reducing leads which would but for the agent's intervention have come MJP's way.

This proposal set out below, might at first sight appear radical but hopefully it will become apparent that it has its roots in fair business practice and is primarily designed to provide positive benefits to both MJP and the agent.

The starting point is to make it clear to both seller and seller agent right from the outset that it is not MJP's practice to collect and pay the agents fee, and that MJP will only deal with updates through email with a turnaround commitment of 48 hours during working hours.

The exception to this is where the agent agrees to become part of our Preferred Agent's Scheme (PAS). There would be no direct cost to the agent to join; the only obligation on the agent would be to refer to us at least xxxx (what number would be fair) client leads each month.

As a member of PAS, the agent would have access to the following benefits:

Dedicated telephone number for updates throughout the transaction with a guaranteed turnaround of 24 hours during the working week

Appointed case handler

24/7 access to the updates posted to MJP's case management system

Collection and payment of the agent's fee

Being part of a national list of preferred agents which will be published and promoted on MJP's website as well as the resource page of MJP's Logbook client base currently holding 29,000 clients

This is based on a quid pro quo' arrangement and is aimed at making sure that if MJP is to devote time and resources to assisting the agent in his role and performance of his business, the loss to MJP's business is addressed through additional new business generated under the scheme. It will also assist in establishing better lines of communication with the agent and also hopefully prevent the unofficial blacklisting which has and continues to occur.

In the event of the agent deciding it does not wish to be part PAS, there would be an option for the agent to pay for the additional service at a suggested fee level of say £35 plus VAT.

I await, with interest your views, comments and suggestions

*Rob Hailstone is Founder of the Bold Legal Group

rh@boldgroup.co.uk www.boldgroup.co.uk

Comments

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    I spend hours every day dealing with incompetent solicitors, many of which are multi discipline, however they always drop the ball on conveyancing ! I'm all for vetting the solicitors before agreeing on a sale, in 27 years I have only met a handful of solicitors who know what they are doing, the last 3 deals I have progressed I have had to do tasks that any competent solicitor would have had completed and in the file before I called to say what are you missing !!!!! most only jump into action when an agent or client call to see why nothing has happened..... a poor reflection of the importance they place on conveyancing !!

    • 10 November 2014 14:47 PM
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    Look at me, look at me, I want everyone to do it my way. It's precisely the one sided arrogant attitude display here in this blog that will see few referrals coming their way! Stick to other areas of law where you can call the shots!

    • 08 November 2014 10:44 AM
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