If a lender has suffered losses resulting from of a breach of contract, negligence, fraud by a conveyancing solicitor it can bring a claim against the defendant firm. Lenders will need to act quickly for the following reasons:
1) The solicitors or Licensed conveyancer may be a limited company or LLPs who can enter into administration
2) The said firm may start up as a new phoenix company without any liabilities of the old business.
3) The claim may be out of time – the general rule is that the lender may have six years from when the cause of action accrues to bring a claim. In certain circumstances this can be extended by three years for negligence claims.
4) If a lender has a claim against a conveyancer it should notify the firm immediately. Due to changes to the ARP,if a claim is not notified to the professional’s insurers and the professional ceases trading a claim may not be covered by their insurers.
5) Insurance cover and assets can be eaten up by claims already made, so there is less money available in the pot to pay out claims.
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