"The concept of dual rep stands as a unique and sometimes misunderstood approach, however it is no doubt a growing trend when the circumstances are right."
Dual representation is a method which has regularly been used in the mainstream market for several years, however in the specialist lending sector, it is often debated by industry professionals as to whether it is the best option.
As with anything, it all depends on the deal itself, however the multitude of benefits should not be underestimated.
So, what is dual representation? Dual representation, commonly known as dual rep, is when the borrower and the lender use the same solicitor. This ultimately results in the legal and conveyancing process being a lot more streamlined and simpler as everything is handled by the same solicitor.
As a result, it is often the fastest method, as opposed to separate representation where the borrower and lender would have a different legal team representing them. In this case, there’s no need to relay messages between two solicitors meaning communication can be more direct and efficient and can also reduce the risk of miscommunications, contributing to a smoother transaction overall. This can be especially beneficial where a deal is needed urgently, a situation most borrowers find themselves in when utilising short-term finance.
In addition, by using dual rep, it can also result in the client saving significantly. For example, with single legal rep, a lender’s legal firm will have to supervise the work of the borrower’s solicitors and perform necessary due diligence to ensure the firm match their standards. The client will therefore have to fund two sets of costs when the solicitors are working through the same case, but with dual rep this can be avoided.
With that said, in some cases using the same legal team may not be the most suitable option, especially for more complex cases were having two solicitor parties would be the more favourable option. In the vast landscape of bridging transactions, the concept of dual rep stands as a unique and sometimes misunderstood approach, however it is no doubt a growing trend when the circumstances are right.
The most important aspect is that the lender recognises their duty to ultimately identify if this is the best method for the borrower in the first instance and ensure that if it is, the legal firm has just as much duty of care to the borrower as the lender.
Here at Hope Capital, we previously only offered dual rep on residential auction deals however, we have just announced we now consider this on all cases. We only work with solicitor partners who we’re confident can achieve this outcome and are looking forward to helping speed up deals even more while helping our clients save significantly from this enhancement.
