SQE1 sample questions

Question 76

A partner in a firm of solicitors is undertaking a routine audit of a file which has been worked on by a solicitor employed by that firm. The file relates to a matter in which the solicitor was acting for a bank in its mortgage of a commercial property.

In undertaking the audit, the partner discovers that the solicitor has omitted to register the bank’s mortgage at the Land Registry and has therefore not carried out the bank’s instructions. It is confirmed that this is the only occasion on which the solicitor has omitted to register a mortgage.

Having discussed the matter with the solicitor, the partner is confident that the solicitor is competent to carry out her role. Nevertheless, the circumstances are such that the partner believes the bank may suffer a substantial loss as a result of this omission.

Which of the following is the best course of action for the partner to take next?

A. The partner must explain the situation to the bank and advise it to get independent legal advice.

B. The partner must inform the Legal Ombudsman of the firm’s omission to register the mortgage.

C. The partner must inform the Solicitors Regulation Authority of the firm’s omission to register the mortgage and send it a copy of the file.

D. The partner must provide the bank with the details of the firm’s professional indemnity insurers.

E. The partner must return all the fees paid by the bank to the firm in respect of this file.