Back in 2019, the Solicitor’s Regulation Authority (SRA) undertook a Residential Conveyancing Thematic Review. This review emphasised that conveyancing firms were falling short in providing sufficient information to their clients regarding the various types of property ownership and potential buyer implications. Alarmingly, the report uncovered that 23% of observed firms failed to clarify the distinction between freehold and leasehold titles. This is fundamental information that one would expect firms to provide without question!
The CQS CPMS standard now mandates that all accredited practices must have a policy in relation to acting in a purchase of a leasehold property. Many CQS firms fall into four categories:
(1) Accredited firms who do not have a policy available when requested by the CQS Audit Team and rush to create one.
(2) Practices with a policy not fit for purpose. Often policies are out of date and do not reflect the current requirements of the CQS Core Practice Management Standards
(3) Firms with a well-drafted Purchase of a Leasehold Policy that has been reviewed by conveyancing fee earners, where the content of the policy is reflected by what is showing in their leasehold matters. In these firms, the staff interviewed talk with confidence about what they do because they know the procedures mirror what the assessor has just read in the policy.
(4) Firms that possess a well-crafted and comprehensive Purchase of a Leasehold Policy, yet fail to align their operational processes with the provisions of this policy. This is evident from file reviews and interviews.