The Legal Practice Council (LPC) has issued a crucial circular addressing the growing concerns about unethical conduct in conveyancing practice.
In this blog, the Gawie le Roux Institute of Law emphasises to all legal practitioners the importance of adhering to the LPC’s Code of Conduct to maintain the profession's integrity. The circular dated 11 March 2025 highlights specific provisions that practitioners must follow to avoid disciplinary actions, including suspension or being struck from the roll.
Let’s look at these provisions in detail.
Key provisions of the LPC’s Code of Conduct
The circular outlines the following key provisions that attorneys must be aware of:
1. Sharing of fees (Section 12)
Practitioners are prohibited from entering into agreements that result in securing professional work solicited by non-attorneys for a reward. This includes both direct and indirect arrangements. Therefore, providing the estate agent with a direct cash payment is a breach, as well as fees being used to ‘reward’ the estate agent with gifts such as holidays, branding, free office space, and vehicle payments.
2. Payment of commission (Section 14)
Attorneys or firms cannot pay an agent's commission in advance (before transfer) unless the funds are provided by the person liable (Seller or, in some instances, the Purchaser) for the commission and with their express authority.
3. Naming in deed of sale or alienation (Section 17)
Attorneys must not act in terms of a deed of sale where their name or their firm's name is pre-printed as the transferring attorney. Exceptions are made if a separate written instruction is given before the deed's signature or the attorney prepares the agreement on the client's instruction.
4. Specific provisions relating to conduct of attorneys (Section 18)
- Attorneys must not associate with organisations or individuals whose business involves soliciting instructions for the attorney.
- Buying third-party instructions or rewarding them for client referrals is strictly prohibited.
- Touting for professional work is considered unethical. This includes offering financial rewards or inducements for referrals and participating in schemes to secure work solicited by third parties.
Examples of unethical conduct
To better understand what constitutes a breach of these rules, here are some examples:
- Touting for business: An attorney offers a real estate agent a commission for every client referred to them. This is a direct violation of Section 18.22, which prohibits offering financial rewards for referrals.
- Pre-printed names in deeds: An attorney's name is pre-printed in a deed of sale without prior written instruction from the client. This breaches Section 17, which requires specific client instructions before the deed's signature.
- Paying commission in advance: An attorney who pays an agent's commission before it is due, using their own funds rather than those provided by the liable person. This violates Section 14, which restricts advance commission payments without express authority.
Consequences of breaching the rules
Practitioners found guilty of unethical conduct will face LPC disciplinary proceedings. These can result in severe penalties, including suspension from practice or being struck from the roll. Legal practitioners must adhere strictly to the LPC’s Code of Conduct to avoid these consequences and uphold the profession's integrity.
An official list of struck and suspended legal practitioners can be found on the LPC’s website here. Furthermore, particulars of disciplinary hearings can also be found on their website here.
Reporting unethical conduct
The LPC encourages practitioners and members of the public to report any unethical conduct to the relevant provincial office for investigation. Any member of the public can complain about a legal practitioner here. This proactive approach helps maintain high ethical standards within the legal profession.
Conclusion
The LPC's circular serves as a vital reminder for legal practitioners to conduct their conveyancing practice ethically and in accordance with the established rules. By understanding and adhering to the LPC’s Code of Conduct, practitioners can avoid disciplinary actions and contribute to the profession's integrity.
Stay informed, stay ethical, and ensure your practice aligns with the LPC's guidelines.
About the author
Johan van Stade’s passion for further education, training, and the law enables him to pass his expertise on to his students, especially those seeking deeper practical knowledge and understanding of the law. He is the presenter and co-author of the Attorneys' admission exam courses and co-presenter of the Course in notarial practice. Johan presents various paralegal courses, such as Civil litigation, among others. He is an admitted attorney, conveyancer, and notary.