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COMMERCIAL UNDERTAKINGS

The Council of the Law Society has recently agreed new regulations to prohibit the giving of commercial undertakings by its members. The new regulations will come into effect on 1 December 2010.

While the giving of commercial undertakings will not be legally prohibited until 1 December 2010, the Society’s strong advice in the meantime is that solicitors should not give commercial undertakings.

In the past solicitors gave letters of undertaking to lenders in commercial property transactions. This frequently led to situations where the undertakings were not complied with and many substantial loans were not properly secured.

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