Conveyancing guide · Joint clients

Phone instructions from one of two joint clients

One of two sellers calls to change where the settlement money goes. Even if the caller is exactly who they say, they may not be able to give that instruction alone.

Why joint clients are different

A real client can still be the wrong person to instruct.

Couples, co-owners and business partners may use one point of contact. Where they do, the firm still needs to establish that person's authority to instruct, and that matters most when a relationship breaks down.

QLS discusses a disciplinary case in which a solicitor released settlement money to one domestic partner without instructions from both sellers. The guidance is to set out at engagement who can instruct, and to keep every joint client informed.

Four separate checks

Answer each one on its own evidence.

  1. 01

    Does the caller have authority to give this instruction for the joint clients?

    QLS says joint clients should not be treated as a single unit: duties are owed to each of them, and taking instructions from one needs authority that comes from the others. Authority to set up the retainer is not the same as authority for later instructions.

    QLS: Accepting instructions from joint clients
  2. 02

    Is this a change to where settlement money goes?

    LPLC's conveyancing guide says to get written authority from all vendors before paying the balance of settlement money to one of several vendors. Where funds are disputed, check the terms they are held on, and don't release them just because one party demands payment.

    LPLC: Claim Free Conveyancing (2021), pp 29-30
  3. 03

    Is the person on the phone the client they say they are?

    Lawcover's March 2024 note recommends training staff to check caller identity before disclosing information. Its December 2020 note recommends confirming bank details in person or, if that isn't possible, by calling a credible number from the client's original instructions, not a number in a suspect email.

    Lawcover: Cyber criminals targeting legal transactions (2024)
  4. 04

    Is the instruction genuine and correctly recorded?

    For bank details, LPLC recommends independently sourcing a trusted number, calling before payment, reading the BSB and account number aloud and asking for read-back, comparing the details with those provided in writing, and keeping a file note. For instructions to disburse settlement money, its Claim Free Conveyancing guide (p 30) also recommends confirming verbal instructions in writing.

    LPLC: Call first to avoid cyber fraud
The file note

What to keep with the matter

  • Who called, the number you reached them on and how you got that number
  • The date and time, who at the firm took the call, and who else was on it
  • The exact instruction, including any BSB and account number read back in full
  • The authority relied on, its scope and any outstanding confirmations; for paying the settlement balance to one of several vendors, written authority from all vendors
  • Whether every joint client was told about the change
  • Who approved acting on it, or why the firm stopped

This is a suggested checklist, not a statement of minimum legal requirements. QLS Guidance Statement 40 recommends recording participants, attendance details, instructions, advice and responses, at the time or as soon as possible afterwards.

Where Vericode fits, and where it stops

A code check speaks to one person and one number. It says nothing about the other client.

Vericode sends a short code to the mobile number your firm selects and records the result, so use a number established through your firm's trusted process. A correct read-back shows the caller knew the code sent for that check. It doesn't show how they got it, who they are, or who controls the phone.

It cannot tell you whether the other joint client agrees, whether the caller has authority for this change, or who owns the new bank account. Establish authority separately, get written authority where it's required, and follow your payment-verification procedure. Neither the code check nor written instructions establish who owns a bank account. Vericode is not a VOI service, and a successful check does not establish compliance with any professional, VOI or AML/CTF requirement.

Sources

These organisations are cited for general guidance, not as endorsers of Vericode.

Before the next changed instruction

Settle who can instruct at engagement, in writing.

Document who may give which instructions and how changes will be confirmed, and establish trusted contact numbers for the joint clients.

Vericode for conveyancing Company director phone instructions
General information only. This guide is not legal advice. Follow your firm's procedures and the rules of your jurisdiction.