Conveyancing solicitors risk undermining their status as the ‘lynchpin of the property market’ if they overreact to the current banking crisis and stop giving undertakings, Chancery Lane has warned.

Law Society President Paul Marsh said solicitors should act with caution, but unless they had a reason to believe a bank was about to go under, it should be business as usual.

‘While your liability for undertakings is of clear concern, it is important not to overreact, particularly in the light of the government statements of support for depositors,’ he said.

Marsh added that the volume in property sales would continue to decline until banks start lending again, making it important to facilitate what transactions do take place.

Richard Barnett, chairman of the Law Society’s conveyancing and land law committee, said: ‘Solicitors have to be cautious, but if they stop giving undertakings the whole conveyancing system will collapse.’