Negotiations and confidentiality

Where solicitors are instructed to seek either a change in the purchase price, an adjustment in the purchase price, or an alteration of contractual terms in the sale and purchase of property, they must remember that communication should only be directed to the recipient (if self-represented) or the solicitor representing the recipient. If the client wishes a third party (for example a real estate agent) to also be a recipient of the communications this should be expressly authorised by the client. It would be prudent for the client to authorise this in writing or for the practitioner to confirm the authorisation in writing.

Practitioners are reminded that all communications between a client and themselves will be confidential. Rule 9.2.1 of the Australian Solicitor Conduct Rules 2012 does provide the client to provide express consent to the publication of confidential information to others. In the absence of an authorisation, it will be a breach of the solicitor’s contractual, equitable, and professional obligations to disclose confidential information to a third party where consent has not been provided.