Solicitors and Estate Agents

[Barquentine]

Does anyone know if solicitors offer estate agents money from their fees to encourage agents to direct new work their way? I know two different solicitors in the same road (one's a friend, the other one I don't know very well). One of them gets loads of instructions (although he charges more) but my mate rarely gets work from them. I told him to offer them an 'incentive' but he says there are rules about this. Is that true and do solicitors use what looks very much like a bribe?

[Buenchico]

Quote (from a reputable source):
"There are also specific rules issued by the Law Society on the relationship between solicitors and estate agents. The big issue is referrals, and in particular, referral fees. Solicitors used to be banned from paying referral fees, but may now pay an estate agent for introducing new business. Solicitors can enter agreements with firms of estate agents, provided that the introducer does not constrain the independence of the solicitor’s advice to the client. In addition, the clients must be informed of any referral fees".

Source:
http://www.stubblegal.co.uk/scripts/8Pro08.htm

Chris

[237SJ]

When my mother sold her house the estate agent had an arrangement with a local solicitor. The deal was a no sale no fee arrangement. If the estate agent put vendors in touch with the solicitor and the sale fell through, there would be no charge. I think (in our case) that was a very good deal and it worked well.

[Barquentine]

Thanks for your very helpful answers.