Home fees to fall as MPs axe monopoly
15 March 2006
By HAYDON DEWES
The cost of buying and selling property should become cheaper with the axing of a monopoly held by lawyers to carry out conveyancing work.
After almost nine years' gestation, Parliament voted the Lawyers and Conveyancing Act into law yesterday, creating a new profession of licensed conveyancer.
"This can only be good news," Consumers Institute chief executive David Russell said.
"It's been a long time coming."
Conveyancing costs when buying a home typically cost between $750 to $1000.
In 1997 Labour's then opposition MP Phil Goff proposed a law change to break the monopoly to bring down that cost.
A more comprehensive bill was finally introduced in 2003 designed to also reform the law relating to lawyers and redefine the obligations of lawyers and conveyancing practitioners.
Justice Minister Mark Burton said the creation of licensed conveyancers would enhance competition in that area, while the new act would strengthen protections for consumers and give the public greater confidence in the legal services industry.
"Consumer protections, such as fidelity funds, professional indemnity insurance and controls over who may describe themselves as lawyers or law practitioners, are set out in the legislation."
It creates an independent legal complaints review officer with the power to refer, overturn or substitute the decisions of the existing standards committees.
A disciplinary tribunal will be established to deal with more serious cases of misconduct by lawyers and conveyancers.
Legal fees – one of the major causes of disputes between lawyers and clients – will have to be disclosed up front. Membership of law societies by registered legal professionals also becomes voluntary.
The New Zealand Law Society played a big part in developing the act.
Seen by some as a "politically motivated" move, the bill also relegates the title Queen's Counsel to the trash heap, following in the steps of knighthoods which were canned in 2000.
National MP Richard Worth described the change as "a further step in the determined drive of the Government to advance the republican cause".
The rank, reserved for selected senior legal professionals, is to be renamed Senior Counsel.
Existing Queen's Counsel will be able to use either title.
15 March 2006
By HAYDON DEWES
The cost of buying and selling property should become cheaper with the axing of a monopoly held by lawyers to carry out conveyancing work.
After almost nine years' gestation, Parliament voted the Lawyers and Conveyancing Act into law yesterday, creating a new profession of licensed conveyancer.
"This can only be good news," Consumers Institute chief executive David Russell said.
"It's been a long time coming."
Conveyancing costs when buying a home typically cost between $750 to $1000.
In 1997 Labour's then opposition MP Phil Goff proposed a law change to break the monopoly to bring down that cost.
A more comprehensive bill was finally introduced in 2003 designed to also reform the law relating to lawyers and redefine the obligations of lawyers and conveyancing practitioners.
Justice Minister Mark Burton said the creation of licensed conveyancers would enhance competition in that area, while the new act would strengthen protections for consumers and give the public greater confidence in the legal services industry.
"Consumer protections, such as fidelity funds, professional indemnity insurance and controls over who may describe themselves as lawyers or law practitioners, are set out in the legislation."
It creates an independent legal complaints review officer with the power to refer, overturn or substitute the decisions of the existing standards committees.
A disciplinary tribunal will be established to deal with more serious cases of misconduct by lawyers and conveyancers.
Legal fees – one of the major causes of disputes between lawyers and clients – will have to be disclosed up front. Membership of law societies by registered legal professionals also becomes voluntary.
The New Zealand Law Society played a big part in developing the act.
Seen by some as a "politically motivated" move, the bill also relegates the title Queen's Counsel to the trash heap, following in the steps of knighthoods which were canned in 2000.
National MP Richard Worth described the change as "a further step in the determined drive of the Government to advance the republican cause".
The rank, reserved for selected senior legal professionals, is to be renamed Senior Counsel.
Existing Queen's Counsel will be able to use either title.