by Peter Mericka B.A., LL.B
Real Estate Lawyer
Qualified Practising Conveyancer Victoria
Director Lawyers Real Estate Pty Ltd
The ultimate real estate office model has arrived. It’s the ILP – a lean, clean sales machine that combines the roles of lawyer, conveyancer and real estate agent to provide an optimum real estate service on a fixed fee basis. Anyone can establish an ILP, including real estate agents, conveyancers and accountants, to provide clients with a one-stop-shop for real estate sales and related legal services.
ILP stands for Incorporated Legal Practice, and an ILP is simply a company which offers legal services. According to the Legal Profession Act 2004:
“An incorporated legal practice is a corporation that engages in legal practice…whether or not it also provides services that are not legal services.” (Section 2.7.4 Legal Profession Act 2004)
“Before a corporation starts to engage in legal practice in this jurisdiction, the corporation must give the (Legal Services Board) written notice, in the form approved by the Board, of its intention to do so.” (Section 2.7.7 Legal Profession Act 2004)
In other words, if it is decided that a company is to become an ILP the company must inform the Legal Services Board of its intention to engage in legal practice, and when it commences to do so it becomes an ILP. Of course, the company must comply with the provisions of the Legal Profession Act 2004, but provided it follows the procedures specified in the Act it can offer real estate sales services without having to observe either the Estate Agents Act 1980 or the Conveyancers Act 2006. The ILP allows a business to operate under one Act instead of being burdened by three. It’s that simple!