I am 3 weeks into the sale of my maisonette in Irlam and the EA has just text me to warn that the buyers are switching property lawyer. The excuse is that the bank will only work with solicitors on their conveyancing panel. On what basis would a major lender only work with certain solicitors rather the firm that they want to select to handle their conveyancing in Irlam ?
UK lenders have always had panels of law firms they are willing to work with, but in recent years big names such as HSBC, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have acted for them for decades.
Lenders justify this action to a rise in fraud as the reason for the pruning – criteria have been tightened as a smaller panel is easier to oversee. Banks tend not to disclose how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society claims that it is hearing daily from firms that have been removed from panels. Some are unaware that they have been dropped until contacted by a borrower who has instructed them as might be the situation in your buyers' case. Your buyers are not going to have any sway in the decision.
All was ready to complete my purchase in Irlam next Thursday. My lawyer now wants me to supply her with evidence of content and building insurance for the property as he says that he has to check this in his capacity as lawyer for the bank. What does the insurance need to cover?
All property lawyers on acting for mortgage companies would need to check that the following risks are covered fire; lightning; aircraft; explosion; earthquake; storm; flood; escape of water or oil; riot; malicious damage; theft or attempted theft; falling trees and branches and aerials; subsidence; heave;landslip;collision;accidental damage to underground services;professional fees, demolition and site clearance costs; and public liability to anyone else. There are some other issues such as the level of excess that are set out in a lender’s Part 2 conditions. These requirements are not limited to conveyancing in Irlam.
The Irlam conveyancing lawyers that just started acting on my purchase in Irlam have without warning closed. I chose them because I had to have a solicitor on the Coventry BS conveyancing panel and my preferred Irlam lawyer was not. I paid them £170 on account. What should be my next steps?
Assuming that you have an Estate Agent in the equation then inform them immediately so that they advise the vendors that there may be a slight delay due to the problems encountered. Hopefully they will be sympathetic and urge their lawyer to send a new set of papers to your new solicitors. You should appoint new lawyers that are on the Coventry BS conveyancing panel and notify the lender. If you have paid over any money, it will hopefully be held by the SRA as money in an intervened firm's bank accounts is transferred to the SRA. Then, the SRA or the intervention agent looks at the intervened firm's accounts to work out who the money belongs to. To claim your money you will need to contact the SRA. If the SRA cannot return money you are owed from the firm's bank accounts, or if they can only return part of the money, you can apply to the Compensation Fund for a grant. Your new lawyers should be in a position to assist.
I have been told that property searches are the main reason for obstruction in Irlam house deals. Is there any truth in this?
The Council of Property Search Organisations (CoPSO) published conclusions of research by MoveWithUs that conveyancing searches do not feature amongst the common causes of hindrances during the legal transfer of property. Local searches are unlikely to be the root cause of delay in conveyancing in Irlam.
I need to instruct a conveyancing lawyer in Irlam for my home move. Is it possible to check a solicitor's complaints history with the legal regulator?
Members of the public can see published Solicitor Regulator Association (SRA) determinations stemming from inquisitions from 2008 onwards. Visit Check a solicitor's record. For information about the period before 1 January 2008, or to check a solicitors history, ring 0870 606 2555, 08.00 - 18.00 Monday, Wednesday, Thursday, Friday and 09.30 - 18.00 Tuesday. For non-uk callers, dial +44 (0)121 329 6800. The SRA could monitor telephone calls for training purposes.
My wife and I are buying a studio flat in Irlam. When we first instructed solicitor, they told us that they were on all mainstream lender panels. Our financial adviser called yesterday to advise that they are not on the Bank of Ireland approved list. If it turns out to be true, what should we do? Do we simply choose a different solicitor that is on their approved list or do we cover the costs for dual representation, with Bank of Ireland selecting their own preferred conveyancing practitioner.
When buying a property with mortgage finance it is usual for the buyer’s solicitors to also act for the mortgage company. In order to act for a bank or building society a solicitor has to be on that lender's list of approved lawyers. An application has to be made by the property lawyer to the lender to become a member of the lender's panel and there are increasingly strict criteria which the solicitor has to meet. Some building societies now require their panel firms to be part of the Law Society’s Conveyancing Quality Scheme. Your lawyer should call Bank of Ireland to discover if they can apply for membership of their conveyancing panel, but if that is not viable they will instruct their own solicitors to act. You are not legally obliged to appoint a law firm on Bank of Ireland's conveyancing panel and you may continue to use your own Irlam solicitors, in which case it will likely add costs, and it will likely delay the transaction as you have another set of people involved.