In the last 24 hours seven lenders have changed their CML Handbook requirements adjusting their instructions at section 5.1.1. The new wording makes it clear that applications which involve ‘Assignable Contracts’, 'Fulfilment Contracts', 'Assisted Contracts', 'Assignment Contracts', 'Novation Contracts', 'Transferable Contracts' or irrevocable powers of attorney in favour of intervening sellers are not acceptable. Law firms should report any other structure to the transaction which has a similar effect. The extension to reporting obligation coincides with the latest SRA report on historic insurance claims data which highlights failure to “Report to Lender” as key area for claims. The report states : Failure to comply with agreed requirement to report four facts about the transaction account for nearly 20% of all claim payments across all areas : – Back to back transaction – seller is an intermediate owner who is buying and imme...
This blog is for CQS accredited firms in England and Wales. Including topics like the Conveyancing process, Conveyancing Policy Templates and Conveyancing case law. As it contains everything about conveyancing and conveyancers it should be of particular interest to property lawyers and property solicitors, as well as COLP and Compliance Managers.