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CQS Dealing with Lender Policy - What's the Point?

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The primary objective of a Dealing with Lenders Policy is that when acting on a purchase or remortgage, the lender is just as much your client as the borrower. Therefore, one has a professional duty to follow their instructions. This is reinforced in the 2022 CQS Core Pratice Managment Standards. When acting for a lender, fee-earners must take all necessary steps to ensure that the conveyancing services provided do not fall below the ‘reasonably competent’ standard. When conducting conveyancing transactions, fee earners are under a professional obligation to report any relevant matters to the lender that could adversely affect the title to the mortgage property or the value of the security. Dealing with lenders as clients is a high-risk area that conveyancing lawyers do not always appreciate. Claims by UK Finance lenders have accounted for around a quarter of all claims against the profession since the 1980's. It is worth remembering that lender dissatisfaction may lead to firms being removed from their conveyancing panels. Without lender panel membership, the future of any conveyainicg will be even more perilous than it is currently. A template for a CQS Dealing with Lender Policy is availabel from multiple suppliers.
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