Australian Capital Territory Current Acts

LEGAL PROFESSION ACT 2006 - SECT 375

    (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, not later than 7 days after the day the money is entrusted to the solicitor, give the client written notice that—

        (a)     tells the client about the effect of section 374 (Bar on claims against fidelity fund relating to regulated mortgages); and

        (b)     includes details of the solicitor's approved policy of fidelity insurance.

    (2)     The solicitor must not advance any of the money to a borrower for a regulated mortgage unless—

        (a)     the solicitor has given the client notice under subsection (1); and

        (b)     after having been given the notice, the client has given the solicitor written authority to advance money for the mortgage.

    (3)     A contravention of this section can be professional misconduct.

    (4)     A contravention of this section does not limit the operation of section 374.

    (5)     This section does not apply in relation to a regulated mortgage that forms part of a managed investment scheme operated by a responsible entity.