Rachel Liston, of Augustus Cullen Law, was speaking at a conference organised by the Professional Negligence Lawyers Association in Dublin.
“In times of growth and economic prosperity advice given may often be over-optimistic,” she said. “Possible errors go largely unnoticed when things are going well and professional advice is rarely challenged. However, in the light of the current economic climate, professional advice is increasingly being scrutinised and errors are being highlighted.”
Claims relating to commercial and residential property transactions accounted for 70% of those made against solicitors insured with the Solicitors Mutual Defence Fund in 2009, she said. Overall claims against solicitors had doubled within two years.
Simon Monty QC told the conference that conveyancers are uniquely vulnerable to criminals, and professional criminals prey on conveyancing solicitors with a weakness requiring expenditure beyond their means, like an expensive drug habit. “Some practitioners, out of desperation, can often be persuaded to collude with dubious deals,” he said.
UK figures showed 32 instances of mortgage fraud in every 10,000 transactions, he said. Those attempting mortgage fraud normally misrepresented either the character or means of the applicant or the value of the property, were involved in back-to-back sales or provided false documentation.
