About CQS Conveyancing

Metro Bank PLC have just updated 15 sections of their CML Handbook Instructions. Some of the more notable section changes include :  5.4.6- Does the lender accept search insurance and, if yes, what are the lender's specific requirements? 5.14.1- What minimum unexpired lease term does the lender accept? 5.20.1- Does the lender require me to report to them where the lease does not meet the CML minimum requirements for leases of roof space for solar PV panels? 7.3- Does the lender require a consent to mortgage from all occupants aged 17 or over? Lawyers on the Metro Bank Conveyancing Panel in particular should take note. To see the changes click here . 

Amongst the recent changes to their CML Handbook Part 2 requirements Skipton Building Society have made a change to Section 7.3. That section deals with the question: Does the lender require a consent to mortgage from all occupants aged 17 or over? The old wording used to be: Yes, using our standard Form of Consent, where there is only one borrower. That was straightforward and simple enough but the new wording reads: Requirements apply where there is only one borrower. See the mortgage offer for those requirements (and the documents to be used) on occupiers known to us. You should report the existence of any other intended occupiers aged 17 or over not named in the mortgage offer to our Completions Team so that we may confirm our requirements . What is meant by 'Requirements apply where there is only one borrower'? Is the lender here talking about both Part 1 and 2? One interpretation could be that if there is more than one borrower these requirements do not ap...

Both the SRA and the Council for Licensed Conveyancers (CLC) are currently focusing their attention on cyber crime and property fraud. The CLC’s recent   fraud webinar was extremely informative. I would wholeheartedly recommend any lawyer or estate agent spending the hour watching the recording. With property fraud avoidance in mind the CLC have recently announced an anti-fraud scheme for it’s regulated firm s. This is a mandated scheme. The CLC are to provide each firm with a unique piece of code that will provide a CLC “secure badge” for the firm to display on their own website. The CLC will then monitor use of that code to ensure there is no unauthorised use of the secure badge (an assurance that I will come onto later). The expectation is that consumers will be able to click on the badge to see information about the regulated firm on the CLC’s website. The CLC have plans to promote the secure badge to consumers and is encouraging firms to do the same. My concern is that...

Human error is inevitable — particularly in stressful conditions such a conveyancing where pressure is applied by various parties who are demanding a swift conclusion at a low cost.  Add to equation the fact that conveyancing has become more complex with a significant chance that a lender client can change their instructions mid-transaction - and you have a toxic mix. Some professional indemnity insurers might even regard it as a recipe for disaster. It is well proven that levels of cognitive function are compromised as stress and fatigue levels increase , as is often the norm in certain complex, high-intensity fields of work. This can, and often does result in increased errors in judgement, decreased compliance with a client's  expectations and failure to follow standard procedures. Areas such as aviation, aeronautics, and product manufacturing, in which safety and precision are paramount in service delivery, have come to rely heavily on tools to aid in reducing h...

Many marketing experts will tell you that as a conveyancing practice if you do great work you can build your firm based on referrals. But is that correct?  Not necessarily. Ask yourself what motivates a client to to take the risky step of referring your firm to friends and family. Even if you do a good job the questions that your clients will be asking themselves are as follows: Do I want to be responsible if my friend has a bad experience? Will I get credit if it works out, blame if it doesn't? Does sending more business in this direction help me, or does it ultimately make my conveyancer too busy, overwhelmed, or motivate her to raise her fees? Will the my conveyancer be upset with me if the person I recommend proves to be difficult, or does not pay his invoice? How does it make me look? Do people like me recommend conveyancing lawyers?  Is this difficult to explain, complex to understand, fraught with danger irrespective of how good my conveyancer is? Does it look like I'm ...

The Council for Licensed Conveyancers (CLC) has confirmed that the First Direct conveyancing panel is now open to Licensed Conveyancers on the same basis as solicitor firms that are members of CQS. Transaction value limits are as follows: Sole practitioners: up to £350,000 Two-partner firms: up to £2m Four-partner firms: up to £3m Separate legal representation is required for all cases of £3m and above. First Direct has automatically added all CLC-regulated firms to their panel using information provided by the CLC, including the number of partners. The CLC have confirmed that they will keep First Direct informed of any change to a member firm.

HSBC is the third lender in the space of a three week period to impose new requirements in relation to Japanese knotweed. In an update to their answer to 5.4.4 of Part 2 of the CML Handbook HSBC's new requirements reads: Japanese Knotweed - You will need to advise the Bank if you become aware that there is, may be or has previously been Japanese Knotweed identified on or near the property. Where Japanese Knotweed has not been identified within the boundaries of the property to be mortgaged to HSBC, but is present on neighbouring land over 7 metres from the boundary, we will rely on the Valuer to advise whether the property is suitable security. Where Japanese Knotweed has been identified within the boundaries of the property being mortgaged to HSBC or on neighbouring land within 7 metres of the boundary, but is more than 7 metres from the habitable space being used as security, we can only proceed if any damage to outbuildings, paths and fences is minor. We will rely on the...

Key Statistics for November 2016 (England & Wales): 35 lenders made changes to their instructions 130 sections were changed by lenders 5 lenders made changes to their minimum lease term requirements 6 lenders made changes on more than one occasion in November 3 lenders set out a disclosure obligation relating to Japanese knotweed One lender set out new (and daunting) obligations in relation to independent advice for joint borrowers For more information click here

In a recent change to their CML Handbook Part 2 requirements, HSBC have imposed new obligations on their conveyancing panel when it comes to advising joint borrowers. One might expect Section 8.1 (‘Does the lender allow me to advise any of the specified third parties?’) to focus solely on 3rd parties. Not so in the case of HSBC who adjusted their requirements to read: Yes, provided that you are satisfied that you do not have any conflict of interest which prevents you advising the third party fully. If this is not the case you must arrange for them to see an independent conveyancer. Direct charges - We require any borrower who is a legal owner of the property but who will not personally benefit from the loan either at all or equally with the other borrowers to obtain Independent Legal Advice where either the amount or portion of the loan from which they will not benefit exceeds £5,000. Indirect charges – Where a Mortgagor of the property is not a borrower, we require t...

If a conveyancing lawyer were to identify the period where they were under the most pressure it would be the last quarter of the year,being the lead-up to the seasonal holidays. Buyers and sellers agreeing a house sale or purchase almost invariably focus on completing the deal ahead of the Christmas break. Home movers, estate agents and brokers will be emailing and calling more than any other time of the year to ensure that deadlines are met. Many lawyers have a voice in their head saying ‘if only I could be left alone to get on with the work....’ The last thing a lawyer needs is a client changing their instructions frequently during this frenetic period. As my mum used to say ‘ I need that like a hole in the head’. Yet for the last few years lenders - the most common client for many a property lawyer - pick this time of year to make their most frequent changes. The proof is in the Christmas pudding … take a look at these charts.

This week three lenders followed HSBC's lead* in using the CML Handbook Part 2 to set out their conveyancing instructions relating to Japanese Knotweed. What should otherwise be a simple ”yes-or no” to question 5.4.4  instead stands as just the latest example of how lenders can utilise Part 2 of the CML Handbook to heap more complex and onerous disclosure obligations on their conveyancing panel lawyers. But, since nothing is ever simple when it comes to CML Handbook Part 2 compliance, the question “Does the lender want to receive environmental or contaminated land reports?” is the jumping off point for lenders to shoehorn in obligations that encroach upon what would normally expect of a surveyor. In-fact up until recently the answer that Coventry Building Society , Godiva Mortgages and ITL gave to the aforementioned question about sending reports to a lander was a simple 'No' These lenders have now changed their answer to : Generally no. In relation to Japanese ...

I can understand why a conveyancing lawyer might have a persecution complex. During the last twenty years the industry has been subjected to ever more risks at a time when fees are being driven down. As if to add salt into the wound, it is often to lawyers who are the first port of all when it come to claiming compensation when things go wrong. In the last couple of years there has been a dramatic increase in occurrences of online fraud cases affecting conveyancing – sometimes resulting in house buyers losing hundreds of thousands of pounds. Whether you call it ‘cyber crime’ or ‘Friday afternoon fraud’ this is where fraudsters hack into the email accounts of either the client or solicitor, recognising the fact that many solicitors now use email as the preferred method of communication with clients. The most common scam sees fake emails sent to either party – the client or solicitor – instructing them to divert large payments to the hacker’s bank account, often during the f...

Kensington Mortgages have changed their attitude and CML Handbook instructions relating to houses in multiple occupation. Up until yesterday the lender specified via Part 2 Section 6.6.4 that  it would not lend where the property came within the definition of a house in multiple occupation?  The new answer to Section 6.6.4 reads: Yes, on the basis that the property is let on an Assured Shorthold Tenancy and any required local authority licence is in place. Please provide confirmation prior to Completion if the property falls within the definition of a house in multiple occupancy as this facility is only available on specific Buy to Let schemes. Lawyers on the Kensington Mortgages conveyancing  panel should pay particular attention to the caveat and disclosure obligations. 

October 2016 proved to be a busy October when it came to changes to lenders' Part 2 sections of the CML Handbook. 31 lenders made changes. This compares to 10  lenders in the same month 2015, 17 in 2014 and 24 in 2013. 159 sections were changed with the most top ten most changed sections being : Times changed Section Question 13 6.7.1        What new home warranty schemes are acceptable to the lender? 10 5.1.1        If different from 1.11, the contact point if the seller has owned the property for less than 6 months: 4 5.14.1       What minimum unexpired lease term does the lender accept? 3 6.6.4        Does the lender lend where the property comes within the definition of a house in multiple occupation?  If yes, what are your requirements?     2 5.4.4      ...