Tenancy | 6065

In a residential tenancy agreement, ca= n I ask my agent to prepare the agreement instead of going to the lawyer?

A.

IF (and only IF) an agent were to help= type out the agreement, he cannot charge the preparation as professional s= ervice. There is no provision for estate agent to charge professional fee o= n writing up contracts. He can only say, he helps to type out some form of = template, and claim it under other charges or disbursements.

Strictly in law, the agreement is in f= act prepared by either party or both parties coming to contract. Indeed, in= most cases, the drafted tenancy agreement is given to both parties to edit= , insert or remove accordingly. The final agreed contract is indeed the res= ult of preparation by both parties.

The agent only facilitated the typing = and photocopying of the agreement - administrative role. If it is asked to = be stamped, the agent can do so. All that work is later charged under disbu= rsement. Meaning, the running around, stationary and minor administration w= ork. The contract is entirely prepared by the parties of the contract. Any = mistake, if found at later stage is also to be accountable by both parties = to the contract, not that of the agent.

Legal Profession Act, 1976 has S.37 (2) in particular mentioned about th= is issue:

Section 37 of the Act prohibits unauthorised persons from acting as soli= citor or advocate and disallows them from preparing documents related to an= y legal proceedings.

In particular,

S.37 2)a
draws or prepares any document or instruments relating to any immovable pro= perty or ...

And,

If such act of preparing for the document is done without charges, it ha= s to be proven at no gain or reward:

"shall, unless he proves that the act was not done for or in expectation= of any fee, gain or reward, be guilty of an offence under this subsection.= "

Hence, an agent should not draft or prepare agreement of contract for cl= ients which is in contravention of the LPA 1976.