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LEGAL PROFESSION ACT 1987 - SECT 122 Notification of insurance arrangements for regulated mortgage

This legislation has been repealed.

LEGAL PROFESSION ACT 1987 - SECT 122

Notification of insurance arrangements for regulated mortgage

122 Notification of insurance arrangements for regulated mortgage

(1) If a client entrusts money to a solicitor and the money, or part of the money, is proposed to be advanced to a borrower for a regulated mortgage, the solicitor must, within 7 days after the money is entrusted to the solicitor, give the client a notice in writing that:
(a) advises the client of the effect of section 121, and
(b) includes details of the policy of fidelity insurance referred to in section 120 (1).
(2) The solicitor must not advance any of the money to a borrower for a regulated mortgage unless:
(a) the client has been given the notice referred to in subsection (1), and
(b) after having been given that notice, the client has given the solicitor a specific authority in writing to advance the money for that mortgage.
(3) A solicitor who contravenes this section commits professional misconduct.
(4) A contravention of this section does not limit the operation of section 121.
(5) This section does not apply in respect of a regulated mortgage that forms part of a managed investment scheme that is operated by a responsible entity.