About CQS Conveyancing

The Land Registry has announced that the changes to portal Business e-services which were scheduled for 6 September, have not been released. This has been due to an unexpected electricity failure. The much awaited changes will now be released on 13 September 2010. This includes the planned electronic delivery changes for portal Business e-conveyancing services transactions and application for Deputy Responsible Persons.

The CML Lenders’ Handbook for England and Wales has not been changed to take into account early completion at the Land Registry. Even though early completion may alter the order of events at the Land Registry the actual conveyancing process remains the same. The Land Registry change offers conveyancers some protection as far as subsequent registrations are concerned and the move has accordingly been welcomed by lenders and conveyancers alike. On the subject of the Lender's Handbook the Land Registry has stated that:- "Completing the applications to register the transfer and new charge subject to the existing charge would not appear to affect the obligations of any party in relation to that existing charge. Whilst early completion will not prevent the new charge taking effect as a first legal charge; it can never become a first charge until the existing charge is removed. This is so whether or not the new charge is entered in the register. The entry of the new charge under e...

The 2010 business plan for the Council for Licensed Conveyancers reveals that the CLC will be moving closer towards implementing an outcomes and risk based approach to regulation. They further confirm that this has been on their radar since 2008. The CLC have blamed the slow progress in this area due to limited resources but now express confidence that they have now addressed that resource challenge through the imminent introduction of a new Management Information System and a new organisational structure. It will be fascinating to see how a Management Information System will deal with risk unless the conveyancer inputs date into a system which could be integrated with the Land Registry. It is lamentable that the Chain Matrix was shelved as this would have proved to be the ultimate panel manager technology which would have been invaluable for the Regulators and Lenders alike.

With the dramatic recent rise in mortgage fraud and property fraud cases in the UK , there is increasing need for members of the public to be better informed about what to look out for and how to avoid falling foul of a property fraud scam. Property fraud scams can be carried out in a multitude of forms and involve a number of participants; some who don't even know they're being taken advantage of. Participating in a scheme that requires you to provide false or misleading information to a mortgage lender is mortgage fraud and therefore a criminal offence. There are two prominent kinds of mortgage fraud today: one involves a property fraud scam - and the other frauds are designed to squeeze money out of transactions involved when a property is exchanged between buyers - 'fraud for profit'. An example of a Mortgage Fraud is where a Straw Buyer is used. This happens when someone is offered money to lend their identity, and are considered phoney loan applicants. They are o...

Property Fraud is on the risk agenda and increasingly conveyancers will be looked upon as one line of defence. I recently stumbled across a blog from a very articulate letting agent who revealed a case of property fraud which he became aware of. Properties that are let are regarded as a prime target for fraudsters. The case in hand relates to a tenant who stole his landlord’s identity and applied to remortgage the property for over Two Hundred Thousand Pounds, then disappeared without making any repayments. The disappearing tenant ( let’s call him Mr X ) rented the property through a Letting Agency in Brighton . Mr X paid 6 months’ rent in advance together with a rent deposit. The property owner, had successfully let the property for several years after moving abroad. Shorty after taking occupation Mr X was able to successfully pose as the owner of the property.

Property Fraud is on the agenda and increasingly conveyancers will be looked upon as one line of defence. I recently stumbled across a blog from a very articulate letting agent who revealed a case of property fraud which he became aware of. Properties that are let are regarded as a prime target for fraudsters. The case in hand relates to a tenant who stole his landlord’s identity and applied to remortgage the property for over Two Hundred Thousand Pounds, then disappeared without making any repayments. The disappearing tenant ( let’s call him Mr X ) rented the property through a Letting Agency in Brighton. Mr X paid 6 months’ rent in advance together with a rent deposit. The property owner, had successfully let the property for several years after moving abroad. Shorty after taking occupation Mr X was able to successfully pose as the owner of the property.

Whist the Chancellor's plan to scrap the stamp duty below £250,000 for first-time buyers will give the housing market a new boost, the extent of the boost will be determined by the definition of “ Fist Time Borrower”. According to HMRC in order to qualify for the stamp duty relief a buyer must not have acquired a major interest in residential property, not have acquired foreign property and the purchase must not involve a company, partnership or trustees . It is unclear whether those who have inherited property in the past would qualify. In the case of joint purchasers both buyers have to be “ First Time Buyers”. The rules themselves are very restrictive, very confusing ( even for conveyancing solicitors ) and will almost certainly delay the number of first-time buyers actually receiving the relief. I suspect that purchasers who define themselves as FTBs will be asked by their Conveyancing Solicitors to sign a statutory declaration confirming that they meet the Revenue’s requireme...

Macdonald Dettwiler & Associates (MDA) have made a move in the arena of commercial conveyancing as they are about to offer a Hosted Land Referencing Solution. The new conveyancing technology will allow all interested stakeholders access to open-ended, client-driven set of data layers, overlaid on an OS map using Geographic Information System (GIS) technology to provide a shareable view of the development site. Possible data layers may include HMLR title information, Local Authority Searches, flood, contaminated land and utility information, highways and water searches. MDA SearchFlow are partnering with the Land Registry as an intermediary on behalf of the England & Wales legal marketplace, with a specific focus on land information for commercial property development. The first contract for the new service, already in place, will provide data intelligence for a leading UK law firm and its client for a large-scale urban redevelopment project. MDA SearchFlow is the UK’s is a le...

Following the previous two consultation papers on e-conveyancing published in 2007, Land Registry has launched the third consultation on today. The stated aim of Land Registry’s e-conveyancing programme is to make conveyancing easier for everyone, with an electronic system that makes buying and selling property less stressful for the public, conveyancing professionals and the other parties involved. The consultation contains the Land registry’s proposals for The Land Registration (Electronic Conveyancing) Rules 2011. These rules will introduce a proposed new electronic transfer (e-transfer),complete with electronic signatures (e-signature), and revoke the Land Registration (Electronic Conveyancing) Rules 2008, which related solely to electronic charges (e-charges). An updated version of the 2008 rules will be incorporated into these new rules so that not only “stand alone” e-charges will be possible, but also e-charges accompanying a TR1. It will be possible to combine the electronic...

How much longer can conveyancing solicitors accept being at the bottom of the legal food chain, with all the responsibility and risk involved. Conveyancers would be forgiven for having a persecution complex having recently come under attack from insurers and lenders. Add to the mix the threat of “ “Tesco Law”. Whilst there has not been any serious suggestion that Tesco will consider launching conveyancing in the near future, it is the supermarket giant’s brand which has become the unofficial moniker for the Legal Services Act . Most conveyancers believe that Tesco conducting conveyancing is a bad thing. Such an opinion is fine if conveyancers have market power, but they don't. The Beatles were not able to stop iTunes from changing the record business by abstaining from the platform, and there's no book publisher who can stop Amazon’s Kindle. The market waits for no one . The alternative to embracing the changes that the Legal Services Act will bring is to sit out the game lou...

Approximately £1 billion a year is predicted by the National Fraud Association to be lost through mortgage fraud. Since the onset of the recession, mortgage lenders have gone to greater lengths to combat fraud and protect their businesses (partly driven by their insurers). For example, with sub-prime, buy to let and self-certified mortgages proving to be the primary target of fraudsters, banks have sought to reduce the number of products available in these niches. Similarly with the economy forcing more and more lenders to reduce their costs, there has been a greater emphasis from banks for fraud prevention, detection and recovery of losses. The Council of Mortgage Lenders (CML) has called for closer scrutiny of conveyancing solicitors firms to crack down on mortgage fraud committed by solicitors, and a comprehensive review of the way solicitors are regulated. The CML said the principles-based approach of the SRA is not adequate to help restore lender confidence, and out of touch with...

In today’s conveyancing market, Defective Title indemnity insurance policies are increasingly being used to enable conveyancing to proceed where the defect threatens the transaction. Title Insurance responds to the issues created by defective title in a number of ways, including • Underwriting the legal cost of responding to a challenge over the owner/mortgagee /insured’s right to use the property • Indemnifying the fees for rectifying a challenge including legal fees • Covering the insured against a loss including having to give up ownership of the property or not being able to use the property in the way that they envisaged In the past, the process of obtaining a quotation for Indemnity Insurance and subsequently arranging cover was a lengthy and complicated process for conveyancing solicitors, in the submission of complicated risk details and underwriting information. Today various companies offer online applications and quotes as well as archiving of the policy itself

Conveyancing Solicitors : Conveyancing Solicitors have expressed the disappointment that the OFT did not propose the regulation of estate agents in its home buying and selling. Commenting on the report Paul Marsh, Law Society property spokesman, said: ‘We’d have liked to see them recommend that regulation of estate agents was put in place to create a level playing field with solicitors, who are very heavily regulated.’ Strange that government deems that solicitors must be heavily regulated by independent bodies and cannot regulate themselves, despite the fact that satisfaction surveys say they do a good job. Estate Agents : Peter Bolton King, chief executive of the National Association of Estate Agents , added: ‘Once again the OFT has categorically failed to see that better regulation of the home buying and selling market is required… it is disappointing that the OFT has not thought it appropriate to acknowledge that a robust and appropriate level of consumer protection is needed.’ ‘T...

One major difference between the BSA instructions, introduced last month, and the CML Handbook is additional clauses dealing with the registration of mortgages where a priority period has expired. Clause E.30 states “If you cannot register our mortgage within the priority period afforded by your Land Registry Search made before completion you must register a unilateral notice to protect our position. Simply renewing your original Land Registry Search is not acceptable.” Clause E.31 states: “If registration at the Land Registry has not been completed within three months from completion you must write to us explaining the reason for the delay and keep us regularly informed of the position until registration has been completed.” The above BSA clauses are aimed at dealing with the problem of mortgages not being registered within priority periods: a major cause professional negligence in the field of conveyancing. The usual situation is that a conveyancing solicitor acts for a buyer on a p...

Have any conveyancers noticed the change in conveyancing requirements for Leeds Building Society ? Having received a notification from LENDERmonitor as to a change I thought I would share it with you as yet a further example of how lenders make conveyancing increasingly difficult and complex. Leeds have made two changes. The first relates to monies received from third parties paying monies towards the purchase price and the second relates to building insurance. The changes are as follows : Old : 5.9 - Contact point if borrower is not providing balance of purchase price from funds/proposing to give second charge. New : 5.9 -If the balance of the purchase price is being paid wholly or in part by anyone other than the borrower, you must provide us with a declaration of this amount, that such an amount is not repayable and that the party providing this amount will not acquire an interest in the property. You must also ensure that clear bankruptcy searches are carried out against the bor...

The advice by the Court of Appeal in their decision against the council in Welwyn Hatfield Council v Secretary of State for Communities and Local Government was that local planning authorities need to look carefully at the inside of buildings, not just at the exterior, when determining whether a building has been constructed and used in accordance with planning permission. In this fascinating case, the Court of Appeal allowed a landowner's appeal and held that the landowner was entitled to a certificate of lawfulness even though landowner confirmed in his evidence to the planning inspector that he had deliberately deceived the council when applying for planning permission. Having obtained planning permission for a hay barn, a landowner constructed a building that externally looked like a barn but which was internally fitted out as a dwelling house. The landowner and his wife lived in the building for four years before applying for a retrospective planning permission. Is it really ...

Last week saw the second reading, in the House of Commons, of The Mortgage Repossessions (Tennant Protection ) Bill. The proposed legislation aims to give private tenants greater protection from repossession if their landlord defaults on the property mortgage. If passed it is believed that the Bill would close a legal loophole causing problems for at least 3,000 tenants a year. The Bill: - Gives courts the power to suspend (for up to two months ) the repossession of a property in cases where the mortgagee had rented it out without informing the mortgage lender - Requires the lender to give notice, at the property, of the proposed execution of the possession order. The Bill, which has cross party support, also has the backing of the three national landlord organisations as well as the Citizens Advice Bureau, Shelter and Crisis, and is likely to become law in the next few months. The most vociferous opponent to the Bill is the CML

Market Harborough Building Society ( a CML Member ) have today published on their web site all of the documents that a conveyancing solicitors will require in order to progress a standard mortgage transaction with the Society . These conveyancing documents include : Mortgage Terms and Conditions Schedule of Documents of Title Building Society Agreement & Undertaking Mortgage Deed (Draft Version) Mortgage Deed Certificate of Title Borrowers' Fees for Additional Services - Fees for Additional Services The documents listed above are only for the use of Solicitors, Licensed Conveyancers (in England & Wales) and Independent Qualified Conveyancers who have been instructed by the Market Harborough Building Society to act for the Lender.

In response to a question from Conservative MP David Amess on what methodology would be used to use to evaluate the effectiveness of the Home Information Pack programme, Communities and Local Government Minister Ian Austin was involved in heated argument. The wording of the debate ( reported in Hansard ) makes interesting reading, so I thought I would share it with you : Mr. David Amess (Southend, West) (Con): What methodology his Department plans to use to evaluate the effectiveness of the home information pack programme; and if he will make a statement. Mr. Andrew Mackay (Bracknell) (Con): What methodology his Department plans to use to evaluate the effectiveness of the home information pack programme; and if he will make a statement. Mr. David Jones (Clwyd, West) (Con): What methodology his Department plans to use to evaluate the effectiveness of the home information pack programme; and if he will make a statement. The Parliamentary Under-Secretary of State for Communities and Local...

According to the Financial Times today over 100 law firms suspected of mortgage fraud were investigated in 2009 as part of a crackdown on rogue solicitors resulting in increased interventions. The figures just released by the Solicitors Regulation Authority reveals that the completed 106 investigations into firms where there was suspected misconduct in relation to mortgages or property. Of these One Hundred and Six practices, 22 were permanently closed down. Twenty four cases have been referred to the police for investigation, and 30 cases have been referred by the SRA to the Solicitors Disciplinary Tribunal, which has the power to strike off solicitors. The FT comments “There has been concern about rising levels of property fraud with the SRA’s own figures showing an increase in reports of suspected property fraud involving solicitors up from 85 cases in 2005 to 400 in 2009.” In the 1980’s property fraudsters used corrupt or incompetent solicitors to help them carry out property fra...

Grant Shapps has asked the Secretary of State for Communities and Local Government when the 2010 report on the effectiveness of the home information packs programme will be published; by whom the report is being produced; using what methodology; and at what cost. As reported in Hansard John Healey’s response was “ We intend to evaluate the effectiveness of HIPs by updating 'The HIP Baseline Research Report', We are currently in the process of commissioning the study through the established contract tender process, so the timing and cost have yet to be finalised. I expect the interim results could be available in summer 2010.” The HIP Baseline Research Report was published in January 2007.

In the recent case of Morgan v Fletcher & others six leasehold owners (the "leaseholders") in a block containing of eight flats (the "block") applied to the LVT to vary retrospectively vary their leases. The leaseholders argued that the service charge clauses in the leases were " not satisfactory" under section 35 of the Landlord and Tenant Act 1987 (LTA 1987). At the time of their application the total of the service charge proportions of all the leases amounted to 116% of the landlord's expenditure. The landlord then went to vary the service charge provisions for the other two leasehold flats in the building, reducing the total service charge contributions for the building to 100% of the landlord's expenditure. The LVT( rather logically ) adjusted the leases of the leaseholders to make the service charge contributions proportionate. The freeholder appealed. The court allowed the appeal. It held that section 35 of the LTA 1987 was not inten...

The Council for Licensed Conveyancers ( CLC ) has this month announced the appointment of Anna Bradley as the new Chair of the CLC following a selection process overseen by the Appointments Commission. Ms Bradley’s appointment, will commence on 1 May 2010 for a period of four years. Victor Olowe, CLC Chief Executive, said: “I am very pleased that Anna has agreed to take up this position on the new Council. I am confident that the CLC will benefit from Anna’s wide ranging skills and experience and we very much look forward to working with her to deliver better outcomes for consumers and other stakeholders”. Following confirmation of her appointment, Anna Bradley said: “I am delighted to be taking up this new role at such an interesting and exciting time for both the CLC and the legal services market”. Anna is currently Chair of Ofcom’s independent Consumer Panel having previously been Consumer Affairs Director of the Financial Services Authority (2002-5) and Chief Executive of the Nat...

The Land Registry Direct system will be ending on 31 March 2010. The technology platform on which it is rests will cease to be supported, meaning that conveyancing services in Land Registry Direct cannot be developed further. The new home for the Land Registry business e-services is the Land Registry Portal, which uses the most up-to-date online technology to provide conveyancers and the public with enhanced services. The Law Society , the CLC and the Land Registry are all encouraging conveyancing lawyers to sign up if they haven’t done so already. If conveyancers send in their application forms by 15 February 2010, then they will avoid the risk of losing access to their business e-services. If conveyancing firms require additional services such as Network Access Agreements and Lender Services, these are optional and can be applied for at a later date.

The final report of a study into the planning issues surrounding development on back gardens undertaken was published this week by the Department of Communities and Local Government.During the passage of the Planning Act 2008, the Government committed to carry out a review establishing the extent of development on back gardens. Over the last 30 years, and especially during the recent housing boom, the issue of back garden development (sometimes known as ‘garden grabbing’) has become politically contentious. Private gardens currently have no special status in planning law, other than as part of private amenity space and their development is treated, in principle, like any other land. Despite the recession which has muted demand for housing land, fundamental concerns about the supply of land to meet housing targets, are still ongoing. In many situations the development on garden areas may be interpreted as entirely appropriate and there are many clear, definable benefits to such develo...

The issue of liability for misinformation within the PIQ ragged on this week with the Housing Minister being asked about the extent of an estate agents liability. If agents know that the answers were untrue, could the agent be in breach of consumer law? John Healey suggests that Estate Agents may be liable as part of a reply to MP Robert Neill, who asked whether agents are liable for misleading omissions in PIQs under HIP legislation, and whether agents were responsible for checking the information. The Housing Minister said they were not liable under HIPs law for PIQs, as long as the agent “believed on reasonable grounds” that the documents complied. No news there then ! The most interesting point that Healy raised was when he added: “An estate agent could be in breach of the Consumer Protection Regulations (CPRs) if he failed to act on information in the PIQ which he knew to be inaccurate or untruthful, because they are required by the CPRs to act in accordance with honest market pra...

The SRA's intervention into the practice of Wolstenholmes, which began on Christmas Eve, was the biggest of 2009, according to the regulator. The firm, closed during the investigation, has offices in Cheshire, Manchester, Birmingham and conducted Conveyancing in London and throughout the UK . Wolstenholmes was a multi disciplined practice offered a full range of services, including conveyancing, family, employment, personal injury, immigration, private client work. An SRA spokesman said the practising certificates of five solicitors were suspended. The Wolstenholmes website still boasts having completed more than 200,000 conveyances, with monthly transactions worth £175 million. According to the site, the secret of the firm's success is explained by "two centuries developing our expertise, refining our knowledge, keeping our nerve during financial hardship and having the nerve to expand beyond all comprehension in a recession."

An Irish conveyancing solicitor who engaged in fraudulent practices to obtain loans on properties, leaving a financial institution with losses of €1.25 million loss, has been struck off by the High Court. According to IrishTimes.com, Mary Miley, formerly practising as Miley and Co Solicitors, Rathdrum, Wicklow, obtained money by pretending she was acting for a borrower called Mary Ann Dore, which was in fact herself using her married name, and used some €570,000 of that for her own personal benefit, the court heard. The lender , Secured Property Loans Ltd is now looking to recover the funds and yesterday was successful in obtaining a freezing order over Ms Miley’s assets to the tune of €1.25 million. President of the High Court Mr Justice Nicholas Kearns agreed to a Law Society request to have papers referred to the DPP. The High Court judge made an order that Miley should make restitution to those parties who are at a loss as a result of her behaviour. The court also ordered that...

The CML in recent report expressed it’s belief that fundamental reform of stamp duty is necessary. It states that it regards Stamp Duty as a tax that discourages labour mobility, and with it’s “ tier ” structure has the effect of causing transactions to “bunch” just under each of the tax thresholds. The CML state “ While abolition would be the best option, a move to a graduated structure would be an improvement on the current system, even if done on a cost-neutral basis. While the temporary concession was welcome as far as it went, it is disappointing that the government has not sought to implement this desirable reform of an anachronistic tax”.

BDO, has come up with some frightening figures on mortgage fraud, against a backdrop of soaring UK losses to fraud in 2009 (over £2 billion) across all sectors. It predicts worse to come. In 2009, mortgage fraud accounted for 18% of all reported fraud and 27% of fraud in the UK finance and insurance sector. Simon Bevan of BDO commented rather frankly: “It may have become more difficult for the person on the street to secure a mortgage in the UK, but the mortgage fraud industry is booming!” Mortgage fraud often works through a large loan being taken out on an overvalued property with a corrupt buyer, valuer and/or conveyancing lawyer working in collusion. The same group will then apply the scam to a portfolio of properties, meaning that the fraud can escalate to large amount. BDO warns of “a tidal wave” of fraudulent borrowing that has only just beginning to appear, particularly through the use of over-valued properties as security for mortgages . Worryingly, he suggests many of these f...

Adopting some of the latest IT, the Land Registry has recently combined its data with the Environment Agency's flood data to produce its new Flood Risk Indicator. Homebuyers can use the Flood Risk Indicator to access clear and reliable information about the possible risk of flooding. Customers can purchase Flood Risk Indicator on-line via the Land Registry website. After inputting address details, home buyers will receive a Flood Risk Indicator result in a couple of minutes – stating whether a specific area of land is likely to experience flooding. Customers can instantly download their result, which indicates whether or not their property is affected by a flood plain. This will assist in being able to obtain building insurance. Time will tell whether mortgage lenders will require this search to become a compulsory search within the conveyancing process. Flood Risk Indicator raises customers' awareness of flooding, and helps them plan and prepare as a result of being better ...

Land Registration under the 2002 Land Registration Act supports land and home ownership by: • ensuring state-backed registration, giving greater title security • protecting against the possibility of losing title by adverse possession • indemnifying home owners under s.103 and Schedule 8, Land Registration Act 2002 against any loss if they are deprived of their state-backed title on a rectification of the register of title for a specific property • introducing certainty and simplicity into conveyancing • setting out, or referring in the register to, all the rights that benefit and affect the title other than certain overriding interests • showing the general extent of the land in each title by means of a title plan • providing that capital can circulate freely in the economy by making land readily available as security • making large holdings of land and portfolios of charges readily marketable.

In the House of Commons today Cheadle MP Mark Hunter challenged the Secretary of State Jack Straw to reassure all those affected by the abrupt closure of Manchester Conveyancing Solicitors Wolstenholmes that their money and documents were safe. Jack Straw shared the concerns and agreed to meet Mark to discuss the issue. Mr Hunter told the House that he had been contacted by a number of distressed local residents and people from all over the country that currently have documents or money held by the firm. In Justice Questions in the House of Commons, Mark asked Jack Straw to ensure that the concerned residents were fully compensated where appropriate. Jack Straw replied and agreed to meet with Mark to discuss the issue further. Commenting, Mark Hunter MP said: "I'm very concerned about the sudden closure of such a long-established business. I've already heard from a number of constituents who have money and/or documents lodged with Wolstenholmes and who are worried abou...

The BSA’s Mortgage Instructions launched today provide a full set of conveyancing instructions for conveyencers acting on behalf of BSA Members and their subsidiaries in residential conveyancing transactions. The Instructions come into full effect from 1 January 2010. The conveyancing Instructions are being used by 31 lenders including 27 building societies . The BSA Mortgage Instructions comprise of two parts ( as is the case with the CML ) : a core set of mortgage instructions; and specific requirements setting out individual lenders’ policies. The FAQ's on the BSA site include the following question and answer: How does the introduction of early completion by the Land Registry affect the use of the instructions in England and Wales? We have considered the impact of the Land Registry bringing in early completion and do not feel that the change requires any significant amendment to the instructions. This is because early completion does not affect the overall process for buying an...

This morning’s Times contains an article Solicitors Regulation Authority closes down law firm Wolstenholmes. The article reveals that five solicitors have been suspended after allegations of dishonesty involving hundreds of thousands of pounds of clients’ money. The Solicitors Regulation Authority has started an investigation into the activities of Cheshire-based Wolstenholmes, which was established in 1818 and carries out conveyancing in London, Manchester and Birmingham. Customers have bombarded the forums of websites such as Money Saving Expert with complaints about the way the company takes £300 as a deposit and then allegedly does not return calls. One client of the conveyancing firm has reportedly told the BBC that she had been left living in a caravan with her children. She claimed that the £445,000 she had transferred to Wolstenholmes, nearly half of which was her own money, had been frozen.