The Law Society has Indemnity insurance as a requirement on all practitioners. This means if the solicitor is negligent a claim can be made if the client suffers loss/damage. This worked fine until Some Solicitors gave Promises (Undertakings) that they now cannot honour. Examples include undertaking to pay proceeds of sale from sale of property when completed to the Lending Bank.
What happens if the property does’nt sell? The bank will look for the money and if undertaking is’nt worded correctly i.e. payment if and when there’s a sale, the lender want someone to pay.
Claims have increased a lot and now a yearly premium of E20,000 PER SOLICITOR. is being forcast as next years premium– about double the present rate whether you had a claim or not.
This will impact on single practitioners and may well force some to cease practise.